Fiscal Year Ending October 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Performance

During this period, M&A activity in the mid-sized and small business market improved in terms of deal count and deal value. Our advisory division consists of 40 staff, with 57 completed deals. Net sales were 687,040 thousand yen (YoY +52.1%), operating income 117,669 thousand yen, ordinary income 135,319 thousand yen, and quarterly net income 107,521 thousand yen, achieving profitability. As this is a single-segment company, segment information is omitted. The full-year forecast remains net sales of 990 million yen, operating income of 178 million yen, ordinary income of 196 million yen, and net income of 143 million yen, with no changes from the previous forecast. Note there is a significant litigation-related subsequent event (reference attached).

Financial Position and Outlook

Current assets amount to 736,679 thousand yen, fixed assets 64,028 thousand yen, and net assets 679,890 thousand yen. Equity ratio is 84.3%. The increase in current liabilities is due to higher accrued taxes and bonus provisions, while net assets increased due to higher retained earnings and a decrease in stock acquisition rights. The earnings forecast is unchanged from the June disclosure. However, as a subsequent event, litigation has been initiated, and if future developments affect results, timely disclosure will be made.