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

Overview of Business Performance

While revenue decreased in the third quarter of the current fiscal year compared to the prior period, the company continued expanding the number of schools adopting ICT teaching materials such as SuRaLa and supporting their utilization amid ongoing digitalization of the education market. The number of fee-paying implemented schools and active user IDs fluctuated both domestically and internationally; in the private education market existing schools continued and new adoptions progressed, whereas implementations in public schools declined due to the end of subsidies and other factors. Expenses reflect continued investments, and selling, general and administrative expenses including advertising and development costs varied while activities were maintained.

Financial Position and Outlook

Total assets increased and the equity ratio declined. The current ratio improved substantially; short-term borrowings were recorded, and cash flow management and continuation of investment planning toward fiscal year-end are challenges. The full-year earnings forecast is unchanged for now but may be revised depending on future market developments. The company will continue initiatives in growth areas such as introducing new content and strengthening Surala-i for local governments.