Cookbiz (6558) FY2026 Q2 Earnings Deep Dive Report

Cookbiz (6558) FY2026 Q2 Earnings Deep Dive Report

Introduction

Cookbiz Co., Ltd. (Securities Code: 6558) reported a significant reduction in operating loss in its Q2 FY2026 earnings, driven by progress in structural reforms and thorough cost control . The investment business maintained profitability, and the HR business showed signs of improvement in leading KPIs, indicating steady progress towards normalizing the business foundation. This report provides a detailed analysis of the company's financial results, business strategies, and future outlook based on the attached materials.

Q2 Consolidated Earnings Highlights

For the second quarter of FY2026 (December 1, 2025 – May 31, 2026), consolidated net sales were 1,414 million yen (down 3.9% year-on-year) . However, the operating loss was 87 million yen , representing a significant improvement of 101 million yen from the 189 million yen operating loss in the same period last year. Ordinary loss also narrowed to 99 million yen (from a loss of 198 million yen in the prior year), and quarterly net loss was 95 million yen (from a loss of 237 million yen in the prior year), with a reduction in losses at each profit level.

This substantial reduction in operating loss was primarily attributed to the lowering of the break-even point through structural reforms . An improvement of 33 million yen in gross profit year-on-year, coupled with reductions of 17 million yen in personnel expenses, 27 million yen in advertising expenses, and 23 million yen in other selling, general, and administrative (SG&A) expenses, significantly contributed to the improvement in operating profit.

The following slide summarizes the consolidated financial results, clearly showing the decrease in net sales and the substantial improvement in operating loss.

Segment-Specific Performance and Factor Analysis

HR Business Status and KPI Trends

The HR business reported net sales of 769 million yen (down 13.5% year-on-year) and an operating loss of 97 million yen (compared to a loss of 129 million yen in the prior year). Although sales decreased, the operating loss showed an improving trend . The HR business consists of three main services: recruitment, job advertising, and scouting.

• Recruitment : Sales decreased by 25.7% year-on-year. While the unit price per placement remained around 1 million yen, the number of placements decreased due to the impact of policy changes. However, following a strategic shift in customer acquisition and interview policies back to the successful model of the previous first half, the speed from contact to selection improved, and the number of applications and interviews clearly increased compared to the bottom period of the previous quarter.
• Job Advertising : Sales decreased by 18.3% year-on-year. Both the number of listed companies and the unit price per placement showed a declining trend.
• Scouting : Sales decreased by 20.4% year-on-year. Both the number of users and the unit price per placement showed a declining trend.

Leading KPIs for the HR business are showing an improving trend, and the impact on earnings is expected from the second half of the fiscal year . In particular, the trend in the number of interviews for recruitment services significantly increased from FY2026 1Q to 2Q, raising expectations for future sales recovery.

The following slide illustrates the trends in service-specific KPIs for the HR business, providing detailed insights into the status of each service. The trends in the number of placements and unit price for recruitment, the number of listed companies and unit price for job advertising, and the number of users and unit price for scouting are crucial for understanding the HR business's revenue structure.

Investment Business Status

The investment business reported net sales of 644 million yen (up 10.7% year-on-year) and maintained an operating profit of 9 million yen (compared to a profit of 59 million yen in the prior year). The “Maruhiro” business, in particular, contributed to this by turning profitable on a standalone basis in Q2 due to aggressive store openings at department store events. For the “Kyuichi” business, a review of unprofitable transactions is also underway. The investment business was targeted for early profitability as part of structural reforms, and this goal has been achieved.

Cost Structure Reform and Financial Health

Selling, general, and administrative expenses decreased by 6.0% year-on-year to 516 million yen. This is a result of thorough cost control .

• Personnel Expenses : Although increased quarter-on-quarter, the Q2 performance was at an appropriate level, partly due to a reversal of stock option revaluation expenses (a one-off reduction factor) in Q1.
• Advertising Expenses : Decreased year-on-year due to optimization of marketing strategies.
• Other SG&A Expenses : Despite one-off M&A-related costs, thorough cost review led to an 8.1% year-on-year reduction.

Furthermore, to improve financial health and ensure flexibility and agility in capital policy, the company implemented a reduction in capital stock and capital reserve, and a disposition of surplus . This addressed the accumulated deficit in retained earnings, with no impact on total net assets.

Future Growth Strategies and Outlook

HR Business Profitability Roadmap and Area Expansion

The HR business has a clear roadmap towards profitability . In Q1, the “normalization of business foundation” (profitability of the investment business, company-wide cost reduction) was completed. In Q2, the “reversal of leading KPIs” (HR business strategy shift leading to KPI recovery centered on recruitment) is in progress. Moving forward, the company aims to “achieve profitability” from Q3 onwards, by realizing sales recovery through strategic shifts and contributing to profitability by lowering the break-even point.

The following slide visually presents the HR business's roadmap to profitability, clearly outlining current progress and future goals.

Additionally, the company is expanding its HR business domain. Leveraging its strength in specializing in the recruitment phase for the restaurant industry, Cookbiz fully acquired TECH CREW Co., Ltd. to expand its service domain into the adjacent human resources and labor management phases. This establishes a system to provide comprehensive, one-stop services covering the entire employee lifecycle in the restaurant industry, from recruitment and hiring to labor management, shifts, and attendance, thereby strengthening customer offerings.

Addressing Structural Challenges in the Food Industry

Cookbiz is addressing the structural challenges facing the restaurant industry: “ labor shortage ” (approximately 4 million workers short in the service industry by 2030) and “ lack of successors ” (approximately 60% of SME owners will be over 70 by 2025). The company's strategy involves expanding services in the HR and DX domains, utilizing foreign talent, and providing M&A support. The acquisition of TECH CREW is part of strengthening this DX domain, aiming to contribute to productivity improvement and talent retention in the restaurant industry.

Conclusion

Cookbiz's Q2 FY2026 earnings are notable for significantly improving operating loss through structural reforms and cost control, despite challenges such as declining sales in the HR business . The sustained profitability of the investment business, the improvement in leading KPIs for the HR business, and the expansion of service domains through the TECH CREW acquisition are positioned as critical steps towards building a sustainable management foundation and achieving profitability . The progress of the HR business's profitability roadmap and initiatives to address the structural challenges in the restaurant industry will be key drivers for future earnings recovery and growth. The execution of these strategies and the trends in KPIs will continue to be closely monitored.