WDB Holdings (2475) Q1 2026 earnings summary

Executive summary

• Consolidated revenue for Q1 FY2026 increased 0.6% year-over-year to ¥12,973 million, driven by growth in the staffing services segment, while operating profit remained flat and net profit surged 55.9% to ¥860 million due to lower corporate taxes.

• The company operates in staffing (mainly science/biotech) and CRO (pharmaceutical development outsourcing), with staffing demand robust amid labor shortages, though securing job seekers remains a challenge.

• The company continues to invest in staff compensation, platform development, and enhanced sales structure for sustainable growth.

Financial highlights

• 1Q FY2026 revenue: ¥12.97 billion (+0.6% YoY); gross profit: ¥3.03 billion (+1.1% YoY); operating profit: ¥1.32 billion (flat YoY); net profit: ¥860 million (+55.9% YoY); comprehensive income: ¥901 million (+36.4% YoY).

• Gross margin improved to 23.4% (+0.1pt YoY); net margin rose to 6.6% (+2.4pt YoY); operating margin 10.2%; recurring margin 10.3%.

• EPS for Q1 FY2026 was ¥43.83, up from ¥28.11 in the prior year.

Outlook and guidance

• FY2026 full-year revenue forecast: ¥51.14 billion (flat YoY); operating profit forecast: ¥4.23 billion (-16.5% YoY); net profit forecast: ¥2.41 billion (-21.0% YoY); EPS ¥122.72.

• 1Q progress rates: revenue 25.3%, operating profit 30.9%, net profit 35.7% of full-year guidance.

• Higher 1Q profit progress due to lower tax burden, with increased costs expected in later quarters, mainly Q3 and beyond.