Medley (4480) investor relations material

Executive summary

• Q1 FY2026 sales increased 25.2% year-over-year to ¥10,189 million, with both HR PF and Medical PF segments contributing strong growth; EBITDA rose 48.1% YoY to ¥631 million, and margin improved by 1 percentage point to 6% YoY, ahead of initial forecasts.

• HR PF sales growth accelerated to 28% YoY, while Medical PF sales grew 26% YoY; both segments are tracking or exceeding forecasts.

• Despite sales growth, a net loss attributable to owners of ¥62 million was recorded, narrowing from a ¥75 million loss in Q1 FY2025.

• Operating loss improved to ¥67 million from ¥121 million in the prior year.

• Strategic investments in advertising, operational efficiency, AI-driven product development, and M&A supported growth.

Financial highlights

• Q1 FY2026 sales: ¥10,189 million (+25% YoY); gross profit: ¥5,604 million (+16% YoY); EBITDA: ¥631 million (+48% YoY); operating loss narrowed to ¥67 million.

• Gross profit increased to ¥4,584 million from ¥3,321 million YoY; SG&A expenses rose to ¥5,604 million from ¥4,819 million.

• Net loss attributable to owners: ¥62 million, improved by ¥13 million YoY.

• Cash and deposits at quarter-end: ¥10,994 million; capital ratio: 29.9%; D/E ratio: 1.54x.

• Total assets grew to ¥43,683 million, up ¥2,430 million from December 2025; net assets decreased to ¥13,057 million, mainly due to increased treasury shares.

Outlook and guidance

• FY2026 sales forecast: ¥46,400 million (+26% YoY); EBITDA: ¥5,800 million (margin 13%); operating profit ¥2,950 million (+37.2% YoY); net income ¥1,800 million (+84.5% YoY); EPS ¥58.25.

• Q1 progress rates: sales 22%, EBITDA 11%, indicating potential to exceed full-year targets.

• Quarterly sales growth expected to accelerate through Q4; EBITDA margin to improve in subsequent quarters.

• HR PF and Medical PF segments both expected to maintain high growth; RMC acquisition to contribute from August.

• No change to previously announced forecasts.