DIP Corporation (2379) Q2 2026 earnings summary

Executive summary

• Q2 sales declined 0.6% year-over-year to JPY 13.063 billion due to organizational transition and temporary disruption in sales activities, but high single-digit sales growth is expected in Q4 as transitions complete and investments in Spot Baitoru and DX business bear fruit.

• Operating profit dropped 40.9% year-over-year to JPY 2.064 billion, impacted by upfront investments in advertising and system development for Spot Baitoru.

• The company is focusing on compliance and ethical practices in the spot job market, introducing compensation for last-minute cancellations, the "Good Job Bonus," and addressing unpaid wage issues to gain customer trust.

• AI-driven business transformation is underway, with new features and monetization plans for dip AI and Baitoru Talk, aiming to enhance matching accuracy and operational efficiency.

Financial highlights

• Q2 FY'26/2 sales: ¥13,063 million, down 0.6% year-over-year; operating income: ¥2,064 million, down 40.9%; net income attributable to owners: ¥1,420 million, down 36.7%.

• SG&A expenses increased due to higher personnel costs and advertising for Spot Baitoru and mid-career hiring.

• Dividend payout ratio expected at 62%, with annual dividend maintained at 95 JPY per share; interim dividend: 47 JPY, year-end dividend: 48 JPY.

• Total assets at Q2 FY'26/2: ¥49,717 million; equity ratio: 77.3%.

Outlook and guidance

• Full-year FY'26/2 sales forecast unchanged at ¥60,000 million (+6.4% YoY); operating income forecast at ¥12,000 million (-10.5% YoY); net income forecast at ¥8,000 million, down 10.6% year-over-year.

• FY'27/2 targets: sales growth of 8% to ¥65 billion, operating income over ¥17 billion, driven by monetization of investments in Spot Baitoru and DX products.

• Sales growth rate expected to reach high single digits in Q4, driven by the Othello Project and increased sales staff.