Profit progress through Q3 is strong, with focus shifting to the likelihood of achieving the FY2026 full-year plan

Revenue for the nine months ended Q3 was ¥14,441 million, up 23.6% year on year. Operating income was ¥862 million, up 67.4%, and ordinary income was ¥768 million, up 66.3%. Net income attributable to owners of the parent also rose sharply to ¥585 million from ¥90 million in the same period of the previous year. Operating income growth substantially exceeded revenue growth, indicating that earnings benefited not only from increased transaction volume but also from margin improvement through greater operational efficiency and lower costs.

The full-year forecasts are revenue of ¥17,788 million, operating income of ¥1,024 million, ordinary income of ¥952 million, and net income of ¥678 million. Progress through Q3 was 81.2% for revenue, 84.1% for operating income, 80.7% for ordinary income, and 86.3% for net income, leaving ¥3,347 million, ¥162 million, ¥184 million, and ¥93 million, respectively, to be generated in Q4. The amounts required, particularly for profit, are relatively small, and the plan does not appear difficult to achieve under normal seasonality. However, the bottom line remains exposed to the effects of tax items and extraordinary income and losses.

The full-year forecast was raised at the Q2 results announcement, and the revised forecast was maintained at the Q3 announcement. In the earnings presentation, the company said that revenue and each profit measure were progressing ahead of its full-year assumptions, while leaving the forecast figures themselves unchanged. Accordingly, at the next results announcement it will be necessary to assess not only whether the plan was achieved, but also whether the final results exceeded the forecast after the upward revision, or whether the company maintained the forecast cautiously after factoring in Q4 seasonality and expense recognition.

The 543.7% year-on-year increase in net income was also heavily affected by the low comparison base, as net income in the previous-year period was only ¥90 million. Both extraordinary income of ¥142.241 million and extraordinary losses of ¥101.285 million were recorded for the nine months ended Q3. At the next results announcement, it will therefore be important to separate the impact of higher operating income on net income from the effects of tax items and extraordinary income and losses. The key point will be whether Q4 operating income reaches at least ¥162 million and net income at least ¥93 million, while the full-year operating margin remains around 5.8%.