【Mirai Works Q3 FY2026 Earnings】Full-Year Guidance Revised Downward Due to Operational Challenges and Impairment Losses; Acceleration of Structural Reforms

Mirai Works, Inc. (Securities Code: 6563) has announced its financial results for the third quarter of the fiscal year ending September 30, 2026 (period from October 1, 2025, to June 30, 2026). This report provides a multifaceted analysis of the company's performance, the rationale behind the downward revision of its full-year forecast, trends in key KPIs, the background of extraordinary losses, and future growth strategies, focusing on key topics extracted from the earnings presentation materials.

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1. Q3 Cumulative Results and Downward Revision of Full-Year Forecast

For the cumulative third quarter of FY2026 , Mirai Works reported net sales of 8,649 million yen (+3.3% YoY), gross profit of 2,245 million yen (+6.5% YoY), operating profit of 241 million yen (+5.8% YoY), and net profit attributable to owners of the parent of 48 million yen (+21.1% YoY), achieving growth in both revenue and profit on a cumulative basis.

However, progress against the initial full-year plan has slowed, with net sales at 66.5% , operating profit at 40.3% , and net profit at 13.4% . Consequently, the company announced a downward revision of its full-year consolidated earnings forecast .

As shown above, the full-year net sales forecast has been reduced from the previous 13,000 million yen to 11,650 million yen (-10.4% YoY). Operating and ordinary profits have been lowered from 600 million yen to 370 million yen (-38.3% YoY), and net profit has been adjusted from 360 million yen to 144 million yen (-60.0% YoY).

The primary cause for the downward revision is that the core Professional Human Resources business , which accounts for over 80% of total sales, saw both the number of contracts and the number of sales personnel fall short of projections. Additionally, the recognition of goodwill impairment losses related to a subsidiary acquisition significantly weighed on net profit.

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2. Changes in Profitability (Q3 Standalone)

While cumulative results remained positive year-on-year, the performance in the third quarter (Q3 standalone: April–June) reveals a notable shift in the profit structure.

Although Q3 standalone net sales grew to 2,803 million yen (+5.8% YoY), this represented a decline compared to the previous quarter (Q2: 2,982 million yen). Furthermore, as SG&A expenses swelled to 712 million yen (+57 million yen QoQ), the company recorded an operating loss of 11 million yen (compared to a profit of 135 million yen in the previous quarter).

With fixed costs, primarily personnel expenses (Q3 personnel costs: 552 million yen ), on an upward trend, the stagnation in gross profit ( 700 million yen ) was the direct factor behind the sharp decline in profit margins.

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3. Performance by Segment

The company's operations are divided into three segments: Professional Human Resources , Regional Revitalization , and Solutions .

① Professional Human Resources Business

• Cumulative Results : Net sales of 8,033 million yen (+4.8% YoY), operating profit (before common cost allocation) of 1,160 million yen (+20.5% YoY).
• Status : While agent services such as "Furicon" (matching for freelance consultants) maintained year-on-year growth, the Q3 standalone performance stalled, with net sales of 2,652 million yen (-86 million yen QoQ) and operating profit (after allocation) of 117 million yen (-61 million yen QoQ). The number of new contracts fell short of the plan, leading to the downward pressure on company-wide profits.

② Regional Revitalization Business

• Cumulative Results : Net sales of 390 million yen (+41.0% YoY), operating profit (before allocation) of -56 million yen (compared to -105 million yen in the same period last year).
• Status : Collaboration with local governments and regional financial institutions is progressing, showing a trend of increased revenue and reduced losses compared to the previous year. However, the Q3 standalone operating profit remains at -51 million yen , indicating a continued phase of upfront investment and losses.

③ Solutions Business

• Cumulative Results : Net sales of 225 million yen (+2.8% YoY), operating profit (before allocation) of -83 million yen (compared to -12 million yen in the same period last year).
• Status : Losses widened due to excess personnel and SG&A expenses incurred to maintain the quality of contracted projects, as well as the sluggish performance of Greenroom, a subsidiary engaged in sustainability and ESG-related businesses.

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4. KPI Analysis: Sales Force Expansion and Productivity Challenges

Gross profit in the core Professional Human Resources business is determined by the formula: " Number of Contracts × Gross Profit per Contract ." The number of contracts is further broken down into " Number of Direct Sales Personnel × Number of Contracts per Salesperson ."

To expand its sales structure, the company actively pursued mid-career hiring, successfully increasing the number of direct sales personnel to an average of 62.9 in Q3 (up from 60.3 in Q2). Furthermore, gross profit per contract remained high at 248,000 yen .

However, the bottleneck was the decline in the number of contracts per salesperson (productivity) .

As shown above, the number of contracts per salesperson peaked at 16.6 in Q2 of FY2025 and has been on a downward trend, falling to 13.1 in Q3 of FY2026.

Although the company increased mid-career hiring by over 200% year-on-year, the net increase fell short of expectations due to employee turnover . Additionally, there was a time lag in making new graduates and inexperienced young employees fully productive, which collectively dragged down the productivity of the entire sales organization.

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5. Background of Extraordinary Loss (Goodwill Impairment of 113 Million Yen)

A major factor pressuring net profit was the recognition of a 113 million yen goodwill impairment loss related to Greenroom as an extraordinary loss in FY2026.

• Assumptions at Acquisition : At the time of the acquisition in March 2025, goodwill was recognized based on the expected excess earning power of the company's PR and advertising media business, driven by rising interest in sustainability and ESG.
• Changes in External Environment : Due to international political shifts, such as the change in the U.S. administration, and policy changes, large corporations have become more cautious about ESG-related advertising and PR (due to concerns over "greenwashing" and a shift toward more practical approaches), leading to a decline in demand.
• Impairment Decision : The company determined that it would be difficult to achieve the originally projected earnings recovery within the remaining period and therefore executed an impairment charge of 113 million yen .

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6. Future Priority Measures and Structural Reform Direction

To achieve earnings recovery and sustainable growth, the company has prioritized the following measures:

1. Evolution of Hiring and Retention to Achieve a "Net Increase" in Sales Staff
   • Improving selection accuracy to prevent mismatches and strengthening onboarding programs to prevent early turnover.
2. Improving Sales Productivity and Organizational Strength through Hierarchical Training
   • Standardizing successful sales processes and utilizing AI to shorten training time.
   • Implementing hierarchical training to enhance the leadership capabilities of management.
3. Systematic Development of Large Enterprise Target Accounts
   • Deploying "team sales" with enhanced account planning for large enterprises (with annual sales of 300 billion yen or more) that offer higher unit prices and continuity.
4. Selection and Concentration of Other Businesses
   • Reducing or withdrawing from unprofitable services in the Regional Revitalization and Solutions businesses to improve overall company profitability .

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Summary

The Q3 FY2026 earnings report reflects a challenging period where increased personnel costs from expanded mid-career hiring were compounded by declining sales productivity and goodwill impairment losses from Greenroom , necessitating a downward revision of the full-year forecast.

On the positive side, the scale of direct sales personnel is steadily increasing, and the unit price per contract remains stable. Moving forward, the focus will be on how quickly the company can execute "retention and early productivity of sales staff," "productivity improvement through AI and standardization," and "selection and concentration of unprofitable businesses" to return to a growth trajectory.