WDB Holdings (2475) Q2 2026 earnings summary

Executive summary

• Revenue for 2Q FY2026 was ¥253.8 billion, down 1.0% year-over-year, with operating profit at ¥23.3 billion, down 10.4%, and net profit at ¥14.8 billion, up 11.8% due to lower corporate taxes.

• The company operates mainly in science staffing and CRO, with staffing demand strong amid labor shortages, but challenges in securing job seekers persist.

• Initiatives included improving staff compensation, strengthening sales, and launching the new HR platform "Doco 1" in May 2025.

Financial highlights

• 2Q FY2026 revenue: ¥253.8 billion (-1.0% YoY); gross profit: ¥57.7 billion (-2.1% YoY); operating profit: ¥23.3 billion (-10.4% YoY); net profit: ¥14.8 billion (+11.8% YoY).

• Gross margin: 22.8% (down 0.2pt YoY); operating margin: 9.2% (down 1.0pt YoY); net margin: 5.8% (up 0.6pt YoY).

• Total assets at September 2025 were ¥42,168 million, up ¥415 million from March 2025; net assets were ¥34,027 million, up ¥786 million.

• Cash and equivalents at period-end were ¥17,453 million, down ¥2,925 million year-over-year.

• Operating cash flow was ¥1,506 million (down ¥684 million YoY); investing cash flow was negative ¥3,807 million (mainly for fixed asset acquisition); financing cash flow was negative ¥836 million (mainly dividend payments).

Outlook and guidance

• Full-year FY2026 revenue forecast: ¥511.4 billion (flat YoY); operating profit: ¥42.3 billion (-16.5% YoY); net profit: ¥24.1 billion (-21.0% YoY).

• Progress rates for revenue and profit are in line with historical trends, but higher SG&A is expected in 2H.

• No changes to previously announced earnings or dividend forecasts.