Lib Consulting FY2026 Q2 Earnings Deep Dive: Mid-to-Long-Term Growth Driven by Aggressive AI Investment and Expanded Operational Foundation

Lib Consulting Co., Ltd. (Securities Code: 480A) released its financial results for the second quarter (first half) of the fiscal year ending December 2026 on August 13, 2026. Bolstered by robust demand for consulting services and a rapid expansion in AI-related projects, the company achieved significant year-over-year growth in both revenue and profit for the first half. Meanwhile, to ensure it captures market opportunities in the AI era, the company has decided to implement approximately 250 million JPY in strategic upfront investments through the second half and has revised its hiring plan upward.

This report provides a detailed analysis of the company's first-half performance, productivity improvements through generative AI, competitive advantages in the AI sector, and the growth strategy behind the revised full-year forecast, focusing on 10 key topics extracted from the disclosure materials.

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1. FY2026 Q2 Consolidated Earnings Highlights

The consolidated results for the first half of the fiscal year ending December 2026 showed strong growth, with all major financial indicators achieving double-digit increases compared to the same period last year.

• Revenue : 3.44 billion JPY ( +19.5% YoY)
• EBITDA : 0.48 billion JPY ( +16.2% YoY)
• Operating Profit : 0.42 billion JPY ( +15.2% YoY)
• Net Profit : 0.27 billion JPY ( +16.9% YoY)

By accurately capturing market demand for consulting and strengthening the consultant headcount and operational structure, the company achieved a 19.5% increase in revenue. Although cost of sales and SG&A expenses rose due to aggressive investment in human capital for mid-to-long-term growth, the revenue growth absorbed these costs, resulting in a +15.2% increase in operating profit compared to the same period last year.

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2. Non-Consolidated Performance Trends and Profit Margin Maintenance

On a non-consolidated basis, the trend of increasing revenue and profit has accelerated. Non-consolidated revenue reached 2.75 billion JPY ( +20.2% YoY), and operating profit reached 0.36 billion JPY ( +24.1% YoY).

Due to the front-loading of recruitment investments, the gross profit margin was 50.0% (-1.8pt YoY); however, the SG&A ratio improved to 36.8% (-2.3pt YoY) as revenue expanded. As a result, the operating profit margin saw a slight increase to 13.3% (+0.4pt YoY), demonstrating steady margin improvement despite aggressive upfront investment.

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3. Non-Consolidated KPI Trends: Dual Growth in Operational Foundation and Productivity

Key Performance Indicators (KPIs) supporting the company's growth—"Number of Consultants" and "Revenue per Consultant"—both remain at high levels.

[Slide Commentary: Importance of Non-Consolidated KPIs]

The slide above presents critical data showing the trajectory of the company's business foundation: "Number of Consultants (Quantity)" and "Revenue per Consultant (Quality)."

• Number of Consultants : Due to strengthened recruitment and some front-loading, the headcount increased significantly by +18.7% from 165 at the end of the same period last year to 196 .
• Revenue per Consultant : Despite being in a period of rapid headcount expansion, revenue per consultant improved by +6.8% to 14.0 million JPY in the first half, up from 13.1 million JPY in the same period last year.

While rapid expansion in the consulting industry often carries the risk of declining productivity per capita, the company is successfully balancing quantity (headcount) and quality (productivity), driving over 20% revenue growth on a non-consolidated basis.

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4. Daily Company-wide Use of Generative AI and Significant Productivity Gains

The improvement in revenue per consultant is underpinned by the daily and sophisticated use of generative AI across the entire company. According to internal surveys, the DAU (Daily Active Users) for generative AI is 98% , and the WAU (Weekly Active Users) has reached 100% .

Furthermore, the proportion of "advanced users"—those who build and utilize AI agents customized for their own tasks—surged from 23.9% in FY26 Q1 to 43.9% in FY26 Q2 (+20pt increase) . Practical AI application within the company has significantly streamlined routine tasks such as document creation, research, and data analysis, creating an environment where consultants can focus on higher value-added work.

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5. Cross-Point Differentiation and Expansion of Customer Segments

The company leverages its diverse client base, including large enterprises (Enpra), small and medium-sized businesses (SMBs), and ventures. Through "Cross-Point Differentiation," which combines insights and assets cultivated across these segments, the acquisition of new projects is accelerating.

• SMB x Enpra Segment : Order value increased by 94% YoY.
• Venture x Enpra Segment : Order value increased by 78% YoY.

For example, initiatives such as applying success stories from dealerships (SMB) in the automotive industry to national strategies for manufacturers (Enpra), or combining venture-style new business creation know-how with the assets of large enterprises, are yielding significant results.

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6. High Customer Satisfaction (91.5%) and Project Creation Ecosystem

The foundation of the company's business expansion is the high quality of its consulting services. In post-project customer surveys, 91.5% of respondents rated the service as "4: Satisfied" or higher on a 5-point scale, and 98.9% when including "3: Neutral."

Its "hands-on" and "execution-support" style, which involves deep integration into the client's workplace, is highly regarded. This high customer satisfaction forms a virtuous cycle leading to repeat business, expanded contract values, and referrals to new clients.

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7. Rapid Surge in AI-Related Project Orders

As demand for corporate DX and AI transformation surges across the market, the company's AI-related project acquisitions are expanding rapidly.

[Slide Commentary: AI-Related Project Order Status]

This slide illustrates the acquisition pace of "AI-related areas," which are the company's future growth pillars.

• Order Value of AI-Related Projects : Recorded explosive growth of 86% compared to the same period last year.
• Share of Total Orders : AI-related projects now account for 21% of total orders.

Driven by "AI x Business Transformation" projects —such as business development at trading companies, sales process transformation at HR firms, and knowledge infrastructure construction for M&A intermediaries—the company leverages its deep understanding of field operations and business structures.

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8. Consulting Market Trends in the AI Era and the Company's Competitive Edge

While concerns have been raised that generative AI might replace some tasks performed by junior staff, the domestic AI consulting market is expected to grow at a high CAGR of 25.6% (2026–2034) .

Backed by over 10,000 project knowledge assets and advanced internal AI expertise (98% DAU, established governance systems), the company possesses the strength to provide end-to-end support, from concept formulation to on-site implementation and the construction of AI-native sales organizations. This deep field-level insight is a clear differentiator from competitors.

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9. Strategic Upfront Investment of Approx. 250 Million JPY and Upward Revision of Hiring Plan

To capture AI-related demand exceeding expectations and establish a competitive advantage for the next generation, the company has decided to implement approximately 250 million JPY in upfront investments in the second half.

[Breakdown of Upfront Investment (Total approx. 250 million JPY)]

1. AI-Related Personnel Costs : Approx. 120 million JPY (Increasing specialized staff for AI strategy and implementation support)
2. AI-Related Recruitment Costs : Approx. 100 million JPY (Acquisition costs and branding enhancement for specialized talent)
3. AI Infrastructure Enhancement : Approx. 15 million JPY (Development and operational strengthening of support platforms)
4. M&A Related Expenses : Approx. 15 million JPY (Research and consideration for non-linear growth)

Additionally, the company has revised its hiring plan upward, focusing on AI-related talent, to increase the year-end consultant headcount from the initial plan of 207 to 229 (+10% increase) . About half of the additional hiring slots have already been filled with job offers, and recruitment is progressing smoothly.

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10. Revision of FY2026 Full-Year Earnings Forecast and Mid-Term Numerical Targets

Following the implementation of upfront investments, the consolidated full-year earnings forecast for the fiscal year ending December 2026 has been revised.

[Slide Commentary: Revisions to Full-Year Earnings Forecast]

The slide above shows the revised figures for the FY2026 full-year earnings forecast and the variance from the previous plan.

• Revenue : Upwardly revised from the previous forecast of 7.08 billion JPY to 7.16 billion JPY ( +17.3% YoY).
• Operating Profit : Revised downward from the previous forecast of 1.11 billion JPY to 0.87 billion JPY ( +4.4% YoY).
• Net Profit : Revised from the previous forecast of 0.72 billion JPY to 0.58 billion JPY ( +14.2% YoY).

Driven by robust AI demand, the top line (revenue) is expected to exceed the initial plan. However, the operating profit plan has been revised because recruitment and personnel costs for additional staff joining in the second half will be incurred upfront, with limited contribution to revenue and profit for the current fiscal year. Nevertheless, the company anticipates accelerated growth from the next fiscal year onward as investment effects materialize, and it maintains its mid-term revenue and profit growth policy (3-year CAGR: 20% for revenue, 40% for operating profit).

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Summary

Lib Consulting's FY2026 Q2 earnings report highlights not only the steady expansion of its existing business but also its clear strengths and successful capture of demand in the generative AI sector. The downward revision of the second-half profit plan is not due to deteriorating performance, but rather to front-loaded growth investments (approx. 250 million JPY) to capture the surge in AI projects. This demonstrates that the company's growth story is being strengthened for 2027 and beyond, when the newly hired expert talent will be fully operational.