Monstarlab posted net sales of ¥3.9 billion and operating profit of ¥38 million for the first half of the fiscal year ending December 2026. The second quarter alone was loss-making, however, and the full-year forecasts were revised downward to net sales of ¥8.0 billion and operating profit of ¥220 million.
Monstarlab reported net sales of ¥3.9 billion and operating profit of ¥38 million for the first half of the fiscal year ending December 2026, remaining profitable on a cumulative basis. Profit before tax was ¥100 million, with figures including the impact of foreign exchange also presented. Although the second quarter alone was loss-making, the company remained profitable for the first half. Investment in AI transformation was cited as one factor that put pressure on profit.
By region, net sales and operating profit declined in APAC Japan, affected by delays in product development. CRA and modernization in the enterprise segment showed growth, while a return to profitability is expected in the fourth quarter. The US business, led by payment solutions, is approaching record-high levels in both sales and profit and is driving overall performance.
The full-year forecasts were lowered to net sales of ¥8.0 billion and operating profit of ¥220 million. The main factors were delays in the transition from product development to AI transformation in APAC Japan and delays in launching new projects. Going forward, the company expects to focus on expanding the enterprise segment, strengthening its AI transformation capabilities and accelerating growth in the US business.
Among the KPIs, large recurring orders in the US amounted to approximately ¥800 million annually, while the order backlog in APAC Japan declined. CRA implementation results included completing legacy-system analysis for a major manufacturer in a short period, demonstrating one aspect of the company’s technology initiatives. In terms of staffing, delivery costs are rising in line with growth in the US, while efforts to improve productivity through the use of AI are progressing.