BASE CO.,LTD. posted its first revenue decline since listing in the first half of 2026, as the impact of its organizational overhaul became apparent. The sharp expansion in AI-related projects and the transition to a six-division structure are drawing attention as factors supporting a future earnings recovery.
At its briefing on second-quarter results for the fiscal year ending December 2026, BASE CO.,LTD. reported its first year-on-year revenue decline since listing. Senior Executive Officer Aoyagi Toru (青柳徹) said that double-digit growth had continued in recent quarters, but revenue fell below the previous year for the first time, expressing a strong sense of crisis.
The company cited its large-scale organizational overhaul in January 2026 as the primary cause of the revenue decline. It changed from a four-division structure to a six-division structure and established an AI Promotion Office, with division heads in key roles moving into company-wide positions. The company said that handovers and the rebuilding of customer relationships took time, temporarily slowing external proposal activities.
The factors behind the first-half shortfall came down to two points: lower gross margins and higher SG&A expenses. Failure to meet the utilization target put pressure on gross margins, while higher costs associated with the transition to the new structure pushed up SG&A expenses. Revenue reached a record high in the previous fiscal year, making this year's result a contrast.
AI-related projects are expanding rapidly, with AI sales discussions up 7x year on year and AI orders growing by more than 2x. Training for AI personnel is also progressing, and education in AI skills has been completed for approximately 100 existing engineers. Under its medium- to long-term BASE2030 strategy, the company aims to reduce the SI share from 70% to 50% and expand its solution services.