Q3 Fiscal Year Ending September 2026 Earnings Q&A

Business Portfolio and Trends

The Company operates a recruitment support business with RPO at its core, improving hiring efficiency and gross margin through the deployment and expansion of OMR. OMR provides twice the candidate referral efficiency of PMR and increases profitability by reducing labor costs through automated ad operations and data utilization. The PMR market is generally contracting; in the near term, the Company will focus on expanding OMR and acquiring new customers. The Alumunia business has been steadily increasing the number of contracted companies versus plan, but revenue is lagging the plan; the Company intends to expand growth drivers by advancing app integrations for commercial facilities. Staffing turned profitable in Q3, with increased dispatch unit prices being the main driver of improved profitability.

Outlook and Strategy

Although the PMR market may continue to shrink, the Company aims for long-term growth through a higher OMR ratio and expansion of new customers and service areas. Alumunia is positioned as a growth driver from the next fiscal year onward, and the Company plans to leverage the capital and business alliance with HATALUCK to substantially increase registered workers. Staffing will continue negotiations with customers whose rates have not been revised, aiming for full-year profitability as revised unit prices contribute throughout the year. Overall, despite revenue downside risks, the Company seeks sustainable growth through OMR expansion and new customer acquisition.