Forside Co (2330) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of FY2026 was ¥3,103 million, a 16.4% decrease year-over-year, mainly due to a reduction in AI-related GPU server sales, despite strong performance in the prize and human resources segments.

• Operating profit declined 61.2% to ¥57 million and net profit attributable to shareholders fell 80.9% to ¥25 million, impacted by lower sales and costs related to an internal investigation.

• The company faced a challenging environment with increased labor and utility costs, and a significant drop in overall profitability despite some segment growth.

Financial highlights

• Q2 FY2026 revenue: ¥3,103 million (83.6% of prior year); gross profit: ¥936 million (112.9% of prior year).

• Operating profit: ¥57 million (38.8% of prior year); net income attributable to shareholders: ¥25 million (19.1% of prior year); ordinary profit: ¥61 million, down 60.8%.

• Comprehensive income was ¥28 million, a 77% decrease year-over-year.

• Gross margin improved due to cost reductions and a shift away from high-cost GPU server sales.

• Cash and cash equivalents at period-end increased by ¥415 million to ¥2,612 million.

Outlook and guidance

• Full-year consolidated revenue forecast: ¥5,998 million, a 30.9% decrease year-over-year.

• Full-year operating profit forecast: ¥108 million; net profit forecast: ¥80 million.

• No revision to previously announced earnings guidance.