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

Overview of Performance

For the consolidated cumulative third quarter period of the fiscal year ending December 2026 (January 1–September 30), revenue was 2,850,688 thousand yen (Year-over-Year -32.7%), representing a substantial decline. The primary reasons were deteriorating profitability and fewer applicants for the core Machbait service, and reduced sales in other businesses such as Tenshoku Kaigi and IESHIL. Although cost of sales and selling, general and administrative expenses decreased, the company recorded a substantial overall loss. A new segment classification of "Human Resources Services" and "Real Estate Services" was introduced, and following the withdrawal of the medium-term plan, structural reforms aimed at returning to profitability are being advanced.

Outlook and Material Changes

The company disclosed supplementary earnings presentation materials and a separately posted full-year earnings forecast. As part of structural reforms, it is promoting "concentration of resources on profit-generating divisions" and "streamlining of operating structure," targeting single-month profitability within fiscal 2027 and full-year profitability in fiscal 2028. The company is advancing AI-native initiatives and redeployment of personnel, and will disclose fixed cost ratio as a new KPI. The financial summary shows the newly calculated full-year forecasts for the fiscal year ending December 2026.