Revenue is on track, but first-half progress in operating profit is the focus

In the first quarter, from April through June 2026, revenue was ¥1,163 million and operating profit was ¥27 million. With full-year forecasts of ¥4,800 million in revenue and ¥200 million in operating profit, the simple progress rates were 24.2% and 13.7%, respectively. Revenue was broadly in line with the 25% elapsed-quarter rate, while operating profit lagged revenue by approximately 10.5 percentage points.

If the full-year forecasts are allocated evenly, the benchmarks for the first half are ¥2,400 million in revenue and ¥100 million in operating profit. Based on first-quarter results, the company would need approximately ¥1,237 million in revenue and approximately ¥73 million in operating profit in the second quarter alone. The larger increase in profit than in revenue will therefore be an important point to monitor. However, because the company has not disclosed quarterly earnings forecasts or seasonality, ¥100 million is not a company forecast but a comparison benchmark based on a simple allocation of the full-year plan.

In the same period of the previous year, revenue for the six months through the second quarter was ¥2,218 million and operating profit was ¥29 million. In the next earnings release, it will be necessary to confirm not only whether consolidated revenue exceeds the prior-year level, but also how far operating profit, which turned profitable in the first quarter, can expand on a first-half cumulative basis. In particular, moving from first-quarter operating profit of ¥27 million to first-half operating profit of ¥100 million would require most of the increase in profit to be recorded in the second quarter.

The company maintained its full-year earnings forecast in the first quarter and did not revise it. In the next release, the key points will be the first-half progress rates, the remaining amounts against the full-year forecasts, and whether the company discloses order intake, order backlog and revenue and profit information by service that support maintaining the full-year forecasts.