Consolidated Financial Results for the Second Quarter (Interim Period) of Fiscal Year Ending October 2026 (Japanese Standards)

Overview of performance

This quarter, on a consolidated basis, net sales were 3,171 million yen, operating income 647 million yen, and net income attributable to owners of parent 183 million yen, with both net sales and operating income significantly down year over year. On a standalone basis, the Consulting business recorded net sales of 2,228 million yen and operating income of 105 million yen, showing an improving trend. While personnel costs were restrained due to recruitment cost control, the Knowledge segment lag within the group affected overall profitability. Dividend income recognized in Q1 impacted consolidated profits, though there is also an impact attributable to non-controlling interests.

Outlook and trends

For the full year, continued project activity in the Consulting business in the second half and active pursuit of new projects are planned, with a focus on profitability for results-based projects such as Pro-Sign. The effect of restrained recruitment costs is expected to continue, and the employment trends and deal acquisition in the second half will be key to performance. Note that, due to the nature of investment exits and dividend income across group companies, there is a possibility that some non-operating items will be reflected in net profit.