FY2026 full-year forecasts are nearly achieved for operating profit, making revenue the focus

Cumulative third-quarter revenue was ¥5,171 million, up 14.0% year on year; operating profit was ¥1,092 million, up 18.3%; ordinary profit was ¥1,121 million, up 18.6%; and net profit attributable to owners of the parent was ¥798 million, up 23.3%. In the third quarter alone, revenue was ¥1,737 million, operating profit ¥349 million, ordinary profit ¥358 million and net profit ¥258 million, with quarterly profit growth supporting the cumulative results.

As of the third quarter, the full-year forecasts were revenue of ¥6,800 million, operating profit of ¥1,130 million, ordinary profit of ¥1,160 million and net profit of ¥910 million. Cumulative progress was 76.1% for revenue, 96.7% for operating profit, 96.7% for ordinary profit and 87.8% for net profit, meaning that operating profit and ordinary profit had nearly reached their full-year plans. Revenue, however, still had just under 24% remaining, so it would not be appropriate to judge full-year achievement based on profit progress alone.

On a simple calculation, the forecasts would be reached if fourth-quarter revenue of ¥1,629 million, operating profit of ¥38 million, ordinary profit of ¥39 million and net profit of ¥112 million were recorded. For operating profit, the required amount is well below the ¥349 million generated in the third quarter alone, so the hurdle for meeting the profit plan is low. However, cumulative third-quarter revenue growth was concentrated in the DX Promotion Business, while growth in the Education and Training Business was limited, meaning that the timing of fourth-quarter revenue recognition and the presence of large projects may determine the revenue landing.

At the next full-year results announcement, it will be necessary to review not only cumulative figures but also standalone three-month fourth-quarter results. In particular, the path to achieving revenue of ¥1,629 million, whether the small remaining operating profit requirement of ¥38 million reflects a nonrecurring profit item, and the revenue and profit generated by the DX Promotion Business and Education and Training Business will be important. The third-quarter materials indicate that full-year achievement is expected, but do not disclose the assumptions underlying the full-year forecasts or fourth-quarter profit by segment.