DIP Corporation (2379) Q2 2026 earnings summary

Executive summary

• Q2 sales declined 0.6% year-over-year to JPY 13.06 billion, mainly due to organizational transition and increased handover tasks, 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 2.06 billion, reflecting upfront investments in advertising, system development for Spot Baitoru, and sales force expansion.

• The company is focusing on compliance and ethical standards 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 and digital initiatives are underway, with new features and monetization plans for dip AI and Baitoru Talk to enhance matching accuracy and operational efficiency.

• Net income attributable to owners fell 36.7% year-over-year to JPY 1.42 billion.

Financial highlights

• Q2 FY'26/2 sales: JPY 13.06 billion, down 0.6% year-over-year; operating income: JPY 2.06 billion, down 40.9%; net income: JPY 1.42 billion, down 36.7%.

• Personnel Recruiting Services sales: JPY 11.45 billion (down 0.6% YoY); DX Business sales: JPY 1.62 billion (down 0.9% YoY).

• Media Services sales declined 0.5% YoY; contract unit price rose 7.5% while contracted companies fell 7.6%.

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

• Dividend payout ratio expected at 62%, with annual dividend of JPY 95 per share.

Outlook and guidance

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

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

• Market expected to gradually recover from temporary weakness in food, beverage, and retail sectors.

• No changes have been made to the previously announced forecast.