Extreme (6033) investor relations material

Executive summary

• Revenue for Q1 FY2027 increased by 10% year-over-year to ¥3,095 million, marking a record high for the first quarter.

• Operating profit declined by 25.4% year-over-year to ¥267 million due to higher personnel, recruitment, and one-time M&A-related costs.

• Net income attributable to parent was ¥180 million, down 7.5% year-over-year.

• The company restructured its reporting segments, merging Digital Talent and Contract Development into Total Solution, and maintained Content Property as the other segment.

• TSD (Total Solution Division) drove revenue growth, while CPD (Content Property Division) saw a decline due to the absence of new title launches compared to the previous year.

Financial highlights

• Gross profit rose 10.7% year-over-year to ¥1,001 million, with a gross margin of 32.3%.

• Operating margin decreased to 8.6% from 12.7% in the prior year.

• EPS for Q1 was ¥33.68, down from ¥36.40 in the prior year.

• Comprehensive income for Q1 was ¥161 million, down 44.1% year-over-year.

• Progress rates for full-year targets: revenue 23.8%, operating profit 20.5%, net income 19.6%.

Outlook and guidance

• Full-year FY2027 guidance is unchanged: revenue ¥13,000 million (+10.2%), operating profit ¥1,400 million (−9.7%), ordinary profit ¥1,300 million (−16.1%), and net profit ¥920 million (−21.9%).

• EPS for the year is forecast at ¥171.81.

• Q2 and beyond are expected to see revenue growth but lower profits year-over-year, with temporary cost increases subsiding and operating margin gradually recovering.