Movin Strategic Career Q2 FY2026 Earnings Analysis: Significant Growth Driven by Surging AI Consulting Demand, Full-Year Guidance Revised Upward Again

Movin Strategic Career Co., Ltd. reported strong growth in its Q2 FY2026 (interim) financial results, with both revenue and profit at all levels exceeding the previously revised forecasts. Driven by structural labor shortages in the macro environment and robust demand for AI consulting, the company saw simultaneous growth in both the "number of successful placements" and "average placement fee," leading to another upward revision of its full-year earnings forecast.

This report extracts 10 key topics for investors from the earnings presentation materials and Q&A session, providing a detailed analysis of the company's growth structure and future outlook.

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1. Q2 FY2026 Cumulative Earnings Highlights

For the first half of FY2026 (cumulative Q2), the company reported revenue of 3.168 billion yen (+76.1% YoY) , operating profit of 1.576 billion yen (+62.9% YoY) , ordinary profit of 1.579 billion yen (+63.2% YoY), and quarterly net profit of 1.036 billion yen (+63.6% YoY).

H1 revenue reached 102.2% of the revised plan (3.1 billion yen) announced at the time of the Q1 results. Notably, Q2 standalone revenue reached 1.829 billion yen (+95.9% YoY) , nearly doubling compared to the same period last year and marking a record high for the second consecutive quarter.

The operating profit margin also reached an exceptionally high level of 49.7% for the first half. This is primarily due to the rapid expansion of the top line, which diluted the relative burden of fixed costs such as SG&A expenses.

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2. Change in Bonus Provisioning and Underlying Profit Growth

Starting this fiscal year, the company changed its method for calculating bonus provisions to a "proportional to annual revenue progress" basis. Due to this accounting change, approximately 243 million yen in expenses were front-loaded in the first half (negatively impacting reported profit).

Under the previous accounting standard, the H1 operating profit would have reached 1.819 billion yen (+88.1% YoY) , indicating that the underlying earning power of the core business is even stronger than the reported operating profit growth rate (+62.9%) suggests. This change is intended to smooth out the timing of expenses across quarters and has no impact on the total full-year operating profit.

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3. Dual Engines: "Higher Unit Prices" and "Increased Placement Volume"

In the company's core recruitment business, the key performance indicators—"average placement fee per successful hire" and "quarterly number of successful placements"—both showed strong growth.

• Growth in Average Placement Fee : The average fee rose by +17.8% in H1 FY26 compared to H2 FY25, reaching a high level exceeding 4 million yen.
• Expansion in Placement Volume : The number of successful placements in Q2 grew by +33.0% YoY , marking a new record high.

This is supported by two tailwinds: "strong hiring appetite from consulting firms due to AI consulting demand" and "rising base salaries for high-caliber talent amid domestic inflation." The tightening of supply and demand due to intensified competition among recruiters has led to higher commission rates, while the increase in the final annual salaries of candidates has created a synergistic effect.

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4. Core Revenue Model: Trends in Career Advisor Headcount and Productivity

Movin Strategic Career's revenue is determined by a simple formula: "Number of Career Advisors × Productivity per Advisor."

• Number of Career Advisors : Reached 126 at the end of Q2 FY26 (a net increase of 14 from the end of Q1), with hiring accelerating. The company is on track to meet its year-end target of 150 .
• Productivity per Advisor : Achieved 4.55 million yen/month in terms of monthly revenue, a +27.2% increase from the FY25 full-year average (3.57 million yen/month).

Even with a higher ratio of new employees, the company has maintained high productivity levels without dilution, thanks to rising placement fees and a systematic training program (combining classroom training and OJT).

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5. Second Upward Revision of FY2026 Full-Year Earnings Forecast

Based on the current favorable business environment and KPI progress, the company has revised its full-year earnings forecast upward again.

• Revenue : 6.4 billion yen (+28.0% vs. initial plan, +10.3% vs. previous revision, +68.4% YoY )
• Operating Profit : 3.03 billion yen (+32.3% vs. initial plan, +13.9% vs. previous revision, +60.8% YoY )

The company's business model is based on a success-fee structure, meaning revenue is not finalized until the day of the candidate's joining. Therefore, the H2 plan is formulated based on underlying trends, accounting for quarterly seasonality and fluctuations, without overly optimistic assumptions.

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6. Characteristics of Profit Structure and Operating Margin Potential

During the Q&A session, the company provided insights into its profit structure and margin levels.

• Operating Margin Target : The company positions its mid-term sustainable operating margin at approximately 46% . While it expects 49.7% for H1 and over 47% for the full year due to top-line growth, the mid-to-long-term strategy is to balance investment and profit generation based on a 46% benchmark.
• Fluctuation in Gross Margin : The slight decline in gross margin for Q2 is attributed to the growth of the "team utilizing third-party platforms" launched in 2024. However, since performance-based bonuses for career advisors are calculated based on gross profit, the decline in gross margin is offset by a decrease in bonus provisions, resulting in minimal impact on operating profit.

7. Competitive Advantage and Positioning (Comprehensive Coverage of the Consulting Industry)

As a differentiator in the recruitment market, the company emphasized its "comprehensive coverage of the consulting industry universe."

While many competitors focus primarily on large generalist firms (Big 4, Accenture, etc.), Movin covers the entire industry , including foreign strategy firms, major Japanese firms, think tanks, independent boutique firms, and finance-specialized firms.

Furthermore, its high success rate—driven by vast accumulated interview knowledge—and its ability to present diverse career paths, including those in operating companies and financial institutions, are key reasons why candidates continue to choose them.

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8. Progress in Internal AI Utilization and Operational Efficiency

Efforts regarding AI technology are being pursued along two axes: internal operational efficiency and new business development.

• Internal Operational Support : Generative AI is being utilized in practical tasks such as document review and interview preparation advice by new career advisors, yielding qualitative benefits in accelerating onboarding and improving productivity.
• Full-Scale Utilization and New Services : Recently released AI-driven initiatives are in the early stages, with expectations that they will contribute to quantitative performance results in stages moving forward.

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9. Progress Toward Mid-Term Management Plan (10 Billion Yen Revenue by 2028)

The company's mid-term management plan targets "10 billion yen in revenue (FY25–FY28 CAGR of approx. 38%) and 4.6 billion yen in operating profit by 2028."

With the two upward revisions this fiscal year (6.4 billion yen in revenue), the company is progressing at a pace significantly faster than the mid-term plan's trajectory. Management has indicated a stance of "not just meeting milestones, but accelerating and ensuring the 10 billion yen target by 2028 through organic growth alone." Note that this plan does not include potential upside from M&A or new business development, which would serve as additional growth factors.

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10. Capital Policy and Shareholder Return Policy

The following basic policy regarding shareholder returns was presented:

1. Priority on Growth Investment : As the company is still in the early stages following its listing on the TSE Growth Market, the top priority is to allocate funds toward "corporate value enhancement through profit growth," such as advisor hiring, AI system investment, and M&A.
2. Direct Return of Surplus Funds : Regarding future methods for returning surplus funds, the company is focusing on "orthodox methods" such as share buybacks and dividends, while management continues to discuss the optimal timing and methods.

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Summary

Movin Strategic Career's Q2 FY2026 results were exceptionally strong, accurately capturing the tailwind of expanding AI consulting demand while simultaneously achieving capacity expansion through hiring and training, and increasing unit prices. The company is steadily progressing in expanding its business foundation toward the early achievement of its mid-term management plan of "10 billion yen in revenue by 2028."