Synchro Food (3963) Q2 2026 earnings summary

Executive summary

• Q2 FY2025 revenue was 908 million yen, down 5.0% year-over-year, with operating profit at 178 million yen, down 37.7% year-over-year, mainly due to a slowdown in core recruitment advertising services amid challenging market conditions.

• Net sales for the six months ended September 30, 2025, were ¥1,852.7 million, down 5.8% year-over-year, with operating profit at ¥362.0 million, down 38.2% year-over-year, and profit attributable to owners at ¥209.5 million, down 46.9% year-over-year.

• Strategic investments in recruitment, advertising, and AI-driven productivity improvements continued, positioning the company for medium- to long-term growth.

• Acquisition of Ideal Inc. and Horizon 14 Co., Ltd. completed, adding the Property Management business segment, with only their balance sheets included in this period's consolidation.

• Acquisition of Ideal Inc. expected to drive significant revenue growth and synergies from Q3 onward.

Financial highlights

• Q2 revenue: 908 million yen (YoY -5.0%, QoQ -3.7%).

• Q2 operating profit: 178 million yen (YoY -37.7%, QoQ -3.0%), operating profit margin 19.6%.

• Ordinary profit for six months: ¥319.4 million (YoY -45.5%).

• Full-year revenue forecast revised up to 5,600 million yen (+41.7% YoY) post-Ideal Inc. acquisition; operating profit forecast revised down to 685 million yen (-37.6% YoY).

• Net income forecast revised to 418 million yen (-36.6% YoY); EPS forecast at ¥14.35.

Outlook and guidance

• Revenue growth expected to accelerate from Q3 as Ideal Inc. performance is consolidated.

• Mid-term plan updated: FY2026 revenue projected at 8,250 million yen (+47.3% YoY), FY2027 at 9,500 million yen (+15.2% YoY), with significant profit growth anticipated.

• Forecast revision reflects the consolidation of Horizon 14 Co., Ltd.

• Strategic focus on expanding recurring revenue, productivity improvements, and new business development.