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

Overview of Performance

Consolidated results for this quarter were net sales of 5,180,339 thousand yen, operating income of 677,516 thousand yen, ordinary income of 661,138 thousand yen, and net income attributable to owners of parent for the quarter of 327,028 thousand yen, representing substantial declines year-on-year. Consolidation scope expanded due to the newly acquired subsidiary Raily. Across the digital marketing domain, market conditions are shifting with the spread of AI-generated technologies, and particularly the decline in organic SEO/search traffic has become a structural challenge. Meanwhile, efforts continue in parts of the Strategic and CPA Solutions businesses, and there have been phases showing quarter-on-quarter improvement in overall profit and loss; however, rising cost ratios and the burden of advertising investments continue to pressure profitability.

Outlook and Key Trends

There is no revision to the earnings forecast announced in August 2026; the full-year outlook remains unchanged. By analysis segment, the CPA Solutions business saw a decline in the number of active advertisers, which impacted revenue, while preparations to bring new advertisers online continue. The Strategic business expanded handled volume but was weighed down by upfront investments, causing deterioration in profitability versus the prior period in some phases; however, expansion of influencer marketing and LINE marketing and measures to restrain advertising expenses are driving improvements in profitability. Attention should also be paid to the impact of goodwill amortization going forward.