Financial Summary for the Second Quarter (Interim) of August 2026 Fiscal Year [Japanese GAAP] (Consolidated)

Overview of Results

For the consolidated results of the second quarter of the August 2026 fiscal year, net sales reached JPY 72,035 million (up 16.8% YoY), showing steady growth. Meanwhile, operating income was JPY 6,907 million (down 14.3% YoY), ordinary income was JPY 6,609 million (down 16.0% YoY), and net income attributable to owners of parent for the interim period was JPY 4,011 million (down 10.7% YoY). The profit decline is attributed to the short-term impact of advanced execution of investments related to AI. AI service orders have begun to ramp up, and recovery is expected in the second half. Adjusted operating income and adjusted interim net income also decreased compared to the same period last year; however, the increase in net sales alongside the ongoing upward trends in both unit prices and number of customers continues.

Segment Results and Financial Position

By segment, net sales for software testing related services were JPY 47,331 million (up 19.5% YoY), with operating income of JPY 9,731 million (down 7.5% YoY). Software development related services posted net sales of JPY 21,313 million (up 8.0% YoY) and operating income of JPY 1,204 million (down 23.9% YoY). Other adjacent services recorded net sales of JPY 6,450 million (up 32.1% YoY) and operating income of JPY 556 million (up 127.8% YoY). Total assets stood at JPY 80,389 million (an increase of JPY 3,388 million from the previous fiscal year-end), and net assets were JPY 38,574 million (a decrease of JPY 2,463 million from the previous fiscal year-end), with an increase in the number of treasury shares due to share buyback activities. There is no change to the full-year earnings forecast for the August 2026 fiscal year.