Synchro Food (3963) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY2026 was ¥943.8 million, down 6.6% year-over-year, with operating profit at ¥183.8 million, down 38.7% year-over-year, mainly due to the absence of a large M&A deal and increased strategic investments.

• Net profit attributable to shareholders dropped 38.6% to ¥123.5 million year-over-year.

• Core job advertising services remained resilient despite a sluggish market, and the company is progressing well toward its full-year plan.

• Strategic investments in hiring, advertising, and AI-driven productivity initiatives are laying the foundation for mid- to long-term growth.

• Media Platform segment saw slight revenue growth, but M&A brokerage revenue declined sharply.

Financial highlights

• Q1 revenue: ¥943.8 million (down 6.6% YoY, down 8.3% QoQ); operating profit: ¥183.8 million (down 38.7% YoY, down 28.4% QoQ); net profit: ¥123.5 million (down 38.6% YoY).

• Operating margin: 19.5% (down 10.2pt YoY); SG&A ratio: 60.9%.

• SG&A expenses rose 5.5% YoY to ¥574 million, mainly due to increased personnel and advertising costs.

• EPS for Q1: ¥4.39, compared to ¥7.48 in the prior year.

• Progress toward full-year guidance: 23.0% of revenue and 22.4% of operating profit achieved in Q1.

Outlook and guidance

• Full-year revenue guidance is ¥4,100 million (up 3.8% YoY), with operating profit guidance at ¥820 million (up 25.3% YoY), net profit at ¥574 million (up 12.9% YoY), and EPS of ¥20.16.

• No change to previously announced full-year guidance.

• Management anticipates a return to previous levels in the M&A segment as one-off factors dissipate.