#InsourceCoLtd

Net sales for the first quarter of the fiscal year ending September 2026 increased 7% year-over-year but fell short of target by 200 million yen. Operating income declined 4% year-over-year, missing the target by 220 million yen. Main causes were increased personnel expenses and insufficient proposals.

On February 1, 2026, treasury stock of 18,100 shares was disposed at 876 yen per share, totaling 15,855,600 yen, and the payment procedure was completed with allocation to 24 individuals including directors and executive officers.

As of February 2, 2026, the IT Service Division’s Operations Support Department was integrated into the Group Content Development Division’s Media Business Department, with position changes for Mr. Toru Ando and Mr. Seiichi Tanimura.

On April 1, 2026, the company will dispose of 56,300 shares of treasury stock at 724 yen per share, totaling 40,761,200 yen, and allocate them as restricted stock compensation to 227 employees of the company and its subsidiaries.

Representative Director and President Takayuki Funahashi plans to start purchasing up to 100 million yen worth of our shares from the market beginning January 30, 2026.

For Q1 of the fiscal year ending September 2026, net sales were 3,764 million yen (7.2% increase YoY), operating income was 1,401 million yen (4.0% decrease YoY), and net income attributable to owners of parent for the quarter was 962 million yen (3.1% increase YoY).

Net sales of 3,764 million yen (7.2% YoY increase), operating income of 1,401 million yen (4.0% YoY decrease), net income attributable to owners of parent of 962 million yen (3.1% YoY increase), with Q1 progress rates of 47.0% for net sales and 44.1% for operating income.