Extreme (6033) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 9.9% YoY to ¥6,206m, a fifth consecutive first-half record; operating profit fell 18.9% to ¥539m.

• Total Solutions growth was offset by weaker Content Properties results and higher personnel, recruitment, corporate and acquisition-related costs.

Financial highlights

• Gross profit was ¥1,969m, versus ¥1,743m a year earlier; gross margin improved to 31.7% from 30.9%.

• Ordinary profit declined 14.5% to ¥616m; net income attributable to owners of the parent fell 11.7% to ¥405m.

• Comprehensive income declined 25.8% to ¥355m, including a ¥94m net loss in other comprehensive income; H1 included ¥129m of special gains, including ¥108m relocation compensation.

• Operating margin was 8.7%, down from 11.8%; ¥40m of M&A-related costs were recorded as one-time expenses.

Outlook and guidance

• FY2027 guidance is unchanged: revenue ¥13,000m, operating profit ¥1,300m, ordinary profit ¥1,400m and net income ¥920m; forecast EPS is ¥171.81.

• H1 achieved 47.7% of full-year revenue guidance and 41.5% of operating profit guidance; management sees progress broadly on plan with expected H2 capacity growth.

• H2 is forecast to deliver revenue of ¥6,793m and operating profit of ¥760m, with an 11.2% operating margin, 2.5 points above H1.

• TSD is expected to track plan; CPD guidance is unchanged amid fewer expected in-house releases and uncertainty.