Interim report
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FASF MEMBERSHIP Consolidated Financial Results for the Three Months Ended June 30 , 2026 Listed company name Listed stock exchange TSE code URL Representative In charge of inquiries Telephone Scheduled date to commence dividend payment Supplementary materials for financial results Briefing session for financial results ( IFRS ) : PERSOL HOLDINGS CO . , LTD . : Tokyo Stock Exchange ( TSE ) : 2181 : https://www.persol-group.co.jp/en/ August 7 , 2026 : Takao Wada , Representative Director , President and CEO : Tetsuo Kemmochi , Executive Officer CFO : + 81-3-3375-2220 : - : Yes : Yes ( for institutional investors and analysts ) 1 . ( Rounded down to the nearest million yen ) Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated Operating Results ( % changes from the previous corresponding period ) Revenue Operating profit Profit before tax Profit attributable to Comprehensive Profit owners of income parent Three months Million yen % Million yen % Million yen % Million yen % Million yen % Million yen % ended June 30 , 424,017 13.5 18,880 22.6 18,642 22.1 12,626 14.5 12,190 14.3 14,955 26.9 2026 June 30 , 2025 373,669 3.6 15,400 -9.2 15,269 -11.4 11,029-17.3 10,662 -17.7 11,783-41.5 Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30 , 2026 5.54 5.46 June 30 , 2025 4.86 4.81 EBITDA Adjusted EBITDA Adjusted profit Three months ended June 30 , 2026 June 30 , 2025 Million yen 28,744 24,085 Million yen Million yen 26,488 21,777 14,884 12,780 ( Notes ) EBITDA Adjusted EBITDA Adjusted profit Adjustment item Adjusted EPS Adjusted EPS Yen 6.67 5.76 : Operating profit + Depreciation / amortization : Operating profit + Depreciation / amortization ( excluding rent and other equivalents from depreciation of right - of - use assets ) + ( - ) Increase ( decrease ) in accrued paid leave + Share - based payment expenses - ( + ) Other income ( expenses ) - ( + ) Other non - recurring profit ( loss ) : Profit attributable to owners of parent ± Adjustment item ( excluding the portion attributable to noncontrolling interests ) ± Tax reconciliation related to certain adjustment items + ( - ) Increase ( decrease ) in accrued paid leave + Share - based payment expenses - ( + ) Other income ( expenses ) - ( + ) Non - recurring profit ( loss ) + Amortization of intangible assets arising from business combinations : Adjusted profit / ( Average number of shares outstanding during the period treasury shares during the period ) Average number of - 1 -
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- 2 - (2) Consolidated Financial Position Total assets Total equity Equity attributable to owners of parent Ratio of equity attributable to owners of parent As of Million yen Million yen Million yen % June 30, 2026 626,972 240,875 221,420 35.3 March 31, 2026 620,535 238,788 219,499 35.4 2. Dividends Annual dividends Q1 Q2 Q3 Year-end Total Fiscal year ended/ending Yen Yen Yen Yen Yen March 31, 2026 － 5.50 － 6.00 11.50 March 31, 2027 － March 31, 2027 (Forecast) 6.50 － 6.50 13.00 (Note) No revision of dividend forecast from the latest announcement. 3. Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (% changes from the previous corresponding period) Revenue Operating profit Profit before tax Profit Profit attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Million yen % Yen 1st half 809,700 7.6 35,000 -4.4 34,800 -3.3 23,800 -4.2 23,000 -4.1 10.13 Full year 1,66 5,00 0 7.0 71,000 6.7 70,500 8.6 46,500 3.8 44,500 4.2 19.60 Adjusted EBITDA Adjusted profit Adjusted EPS Million yen % Million yen % Yen 1st half 47,200 6.4 25,900 3.9 11.41 Full year 97,000 10.0 51,500 6.6 22.68 (Note) No revision of financial forecast from the latest announcement. Notes (1) Significant changes in the scope of consolidation during the period: None (2) Changes in accounting policies and accounting estimates (i) Changes in accounting policies required by IFRS: None (ii) Changes in accounting policies other than (i) above: Yes (iii) Changes in accounting estimates: None (Note) For details, please refer to “2. Condensed Consolidated Financial Statements (5) Notes to Condensed Consolidated Financial Statements (Change in Accounting Policies)” on page 16. (3) Number of shares issued (common shares) (i) Number of shares issued at end of period (including treasury shares) As of June 30, 2026 2,278,437,810 As of March 31, 2026 2,278,437,810 (ii) Number of treasury shares at end of period As of June 30, 2026 47,786,318 As of March 31, 2026 47,765,002 (iii) Average number of shares outstanding during the period (cumulative total for the period) Three months ended June 30, 2026 2,200,964,711 Three months ended June 30, 2025 2,193,217,526 (Note) The number of treasury shares at end of period includes those held by the "Directors' Compensation BIP Trust Account" and the "Stock Grant ESOP Trust Account" (20,936,605 shares as of June 30, 2026 and 21,367,220 shares as of March 31, 2026). The Company's shares held by "Directors' Compensation BIP Trust Account" and the "Stock Grant ESOP Trust Account" are included in the treasury shares, which are deducted from the calculation of the average number of shares outstanding during the period.
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- 3 - Review of the attached quarterly consolidated financial statements by a certified public accountant or auditing firm: Yes (voluntary) Explanation on the appropriate use of earnings forecasts and other special notes (Cautionary statement regarding forward-looking statements) Forward-looking statements in this document, such as forecasts and projections based on plans, contain elements of uncertainty and are subject to change. Accordingly, they are not intended to be a promise by the Company that they will be achieved. Actual results may differ materially from our current expectations. Note Regarding Reference Translation This document has been translated from the Japanese language original for reference purposes only and may not be used or disclosed for any other purpose without the Company’s prior written consent. In the event of any conflict or discrepancy between this translated document and the Japanese language original, the Japanese language original shall prevail in all respects. The Company makes no representations regarding the accuracy or completeness of this translation and assumes no responsibility for any losses or damages arising from the use of this translation.
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- 4 - Contents 1. Overview of Operating Results and Financial Position ……………………………………………………………………. 5 (1) Overview of Operating Results for the Three Months Ended June 30, 2026…….………………………. 5 (2) Overview of Financial Position as of June 30, 2026 ………………………………………………………………….. 7 2. Condensed Consolidated Financial Statements ………………………………………………………………………………. 9 (1) Condensed Consolidated Statements of Financial Position ………………………………………………………. 9 (2) Condensed Consolidated Income Statements and Comprehensive Income Statements ………… 11 (3) Condensed Consolidated Statements of Changes in Equity ……………………………………………………… 13 (4) Condensed Consolidated Statements of Cash Flows …………………………………………………………………. 15 (5) Notes to Condensed Consolidated Financial Statements …………………………………………………………… 16 (Applicable Financial Reporting Framework) ……………………………………………………………………………… 16 (Notes on Going Concern Assumption) ……………………………………………………………………………………… 16 (Change in Accounting Policies) …………………………………………………………………………………………………. 16 (Segment Information) ………………………………………………………………………………………………………………. 17 (Earnings per Share) …………………………………………………………………………………………………………………… 19 (Significant Subsequent Events) ………………………………………………………………………………………………… 19
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- 5 - 1. Overview of Operating Results and Financial Position (1) Overview of Operating Results for the Three Months Ended June 30, 2026 At present, the Group provides a wide range of human resources (HR) related services including temporary staffing and placement service in Japan. In addition, in the Asia -Pacific (APAC) region, the Group operates staffing business and facility management business , etc. and an AI -driven staffing platform business in Europe and the United States. Amid continued tight labor market conditions in Japan, the Group pursued steady growth of its core businesses, namely Staffing SBU, BPO SBU, and Asia Pacific SBU (SBU: Strategic Business Unit), while also working to expand its growth businesses, Career SBU and Technology SBU, in line with the policies set forth in the M id-term Management Plan FY2028 announced in May 2026. As a result, Group-wide revenue for the three months ended June 30, 2026 reached 424,017 million yen (up 13.5% year on year), primarily due to the contribution of Gojob SAS, acquired in October 2025, and favorable foreign exchange effects. On the profit front, g ross profit increased steadily, resulting in adjusted EBITDA of 26,488 million yen (up 21.6% year on year) and operating profit of 18,880 million yen (up 22.6% year on year). Profit before tax was 18,642 million yen (up 22.1% year on year), and profit attr ibutable to owners of parent was 12,190 million yen (up 14.3% year on year). (Note) Adjusted EBITDA: Operating profit + Depreciation/amortization (excluding rent and other equivalents from depreciation of right-of-use assets) +(–) Increase(decrease) in accrued paid leave + Share-based payment expenses –(+) Other income(expenses) –(+) Other non-recurring profit(loss) (Exchange Rate) Average exchange rate during the period: (AUD) FY2025 Q1: 92.6 yen, FY2026 Q1: 113.1 yen Segment results (before elimination of intersegment transactions) were as follows: a. Staffing SBU This segment mainly operates the temporary staffing business in Japan, which covers a wide range of industries, mainly in the clerical area, as well as the placement business mainly for clerical positions. Revenue for the three months ended June 30, 2026 was 158,256 million yen (up 3.4% year on year), adjusted EBITDA was 11,674 million yen (up 13.8% year on year), and operating profit was 9,937 million yen (up 12.2% year on year). Revenue increased year on year despite one fewer operating day compared with the corresponding period of the previous fiscal year, mainly reflecting a 0. 6% year-on-year increase in the number of active temporary staff and a 2.5% year-on-year increase in the charge price . Adjusted EBITDA and operating profit also increased year on year, primarily due to the progress in initiatives to optimize selling, general and administrative expenses. b. BPO SBU This segment operates a business process outsourcing (BPO) business, including operational support for public -sector and private -sector organizations; a customer experience (CX) business, including outsourced communication operations such as contact center and sales marketing services; and a consulting business in the HR and technology domains.
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- 6 - Revenue for the three months ended June 30, 2026 was 35,936 million yen (up 5.7% year on year), adjusted EBITDA was 1,257 million yen (down 0.7% year on year), and operating profit was 474 million yen (up 48.0% year on year). Revenue increased year on year, driven by growth in both the BPO and CX businesses, as demand for outsourcing services continued to expand amid labor shortages, reflecting clients' needs for workforce supplementation and operational efficiency improvements. Adjusted EBITDA remained largely flat due to upfront costs, including system investments. Operating profit, however, increased year on year, mainly reflecting the impact of accrued paid leave expenses included in adjustment items. c. Technology SBU This segment operates the IT/DX Solutions business, which provides contract -based design and development services and dispatches specialized engineers through the Group's employees in the IT domain; the Engineering business, which provides contract-based design and development services and dispatches specialized engineers through the Group's employees in the engineering domain; and the Registered Temporary Staffing and Freelancers business, which provides engineer dispatch services in these domains through registered temporary staff and freelancers. Revenue for the three months ended June 30, 2026 was 31,179 million yen (up 6.6% year on year) , adjusted EBITDA was 1,238 million yen (up 42.8% year on year), and operating profit was 190 million yen (up 49.4% year on year). Revenue increased year on year, mainly due to an increase in the number of engineers resulting from ongoing efforts to strengthen engineer recruitment in the IT/DX Solutions business and the Engineering business. Adjusted EBITDA and operating profit increased year on year, driven by revenue growth as well as the resolution of delays in intra -group projects that had affected performance in the corresponding period of the previous fiscal year. d. Career SBU This segment mainly operates a placement business that supports the mid-career recruitment activities of client companies, a job recruitment media business, and a side -job and freelance business that supports the utilization of professional talent. Revenue for the three months ended June 30, 2026 was 38,678 million yen (down 1.7% year on year), adjusted EBITDA was 9,351 million yen (down 10.5% year on year) , and operating profit was 7,878 million yen (down 13.2% year on year). Revenue decreased year on year, reflecting continued selective hiring by client companies as well as the impact of user attrition caused by issues in the login process following the integration of IDs for doda and doda X. Meanwhile, the side -job and freelance business (HiPro) continued to perform well. Adjusted EBITDA and operating profit decreased year on year, primarily due to increased expenses associated with AI investments and initiatives to strengthen the high-income domain. e. Asia Pacific SBU This segment mainly operates staffing business in Asia as well as staffing and facility management businesses in Australia. Revenue for the three months ended June 30, 2026 was 145,441 million yen (up 26.0% year on year), adjusted EBITDA was 4,121 million yen (up 96.0% year on year), and operating profit was 2,871 million yen (up 132.2% year on year). Revenue increased year on year, primarily due to favorable foreign exchange effects. Adjusted EBITDA and operating profit increased year on year, reflecting favorable foreign exchange effects, lower costs associated with system renewal projects compared with the corresponding period of the previous fiscal year, and cost optimization efforts, primarily in personnel expenses.
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- 7 - (2) Overview of Financial Position as of June 30, 2026 (i) Assets, Liabilities and Equity Total assets increased by 6,437 million yen from the end of the previous fiscal year . Current assets increased by 5,094 million yen, while non-current assets rose 1,342 million yen. The increase in current assets was mainly attributable to increases in contract assets of 3,923 million yen and other current assets of 3,958 million yen, despite a decrease in cash and cash equivalents of 2,374 million yen. The increase in non-current assets was mainly attributable to increases in other financial assets of 2,169 million yen and goodwill of 1,347 million yen, despite a decrease in right-of-use assets of 2,731 million yen. Liabilities increased by 4,350 million yen from the end of the previous fiscal year. Current liabilities increased by 7,001 million yen, while non -current liabilities decreased by 2,650 million yen. The increase in current liabilities was mainly attributable to increases in trade and other payables of 7,442 million yen and other current liabilities of 2,279 million yen, despite a decrease in income taxes payable of 6,196 million yen. The decrease in non -current liabilities was mainly attributable to a decrease in lease liabilities of 2,232 million yen Equity increased by 2,086 million yen from the end of the previous fiscal year. This was mainly due to an increase in other components of equity of 2,290 million yen, primarily reflecting an increase in exchange differences on translation of foreign operations of 2,142 million yen resulting from fluctuations in foreign exchange rates, despite a decrease in retained earnings of 1,133 million yen, mainly due to the payment of dividends of 13,384 million yen and the recognition of profit attributable to owners of parent of 12,190 million yen. (ii) Business and Financial Issues to Address The three months ended June 30, 2026 saw no significant change in business and financial issues that the Group should address. As of March 31, 2026 As of June 30, 2026 Ratio of operating profit to revenue 4.3％ 4.5％ Ratio of adjusted EBITDA to revenue 5.7％ 6.2％ Current ratio 107.7％ 107.0％ Fixed ratio 129.9％ 129.4％ Fixed assets to long-term capital ratio 98.3％ 99.1％ Ratio of equity attributable to owners of parent 35.4％ 35.3％ Net debt/equity (times) -0.24 -0.22
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- 8 - (iii) Cash Flows Cash and cash equivalents (hereinafter "capital") as of June 30, 2026 were 82,643 million yen, down 2,374 million yen from the end of the previous consolidated fiscal year. Presented below is an overview of cash flows for the three months ended June 30, 2026 and main factors behind them. (Cash flows from operating activities) Capital generated by operating activities was 20,448 million yen (as compared to 13,751 million yen generated in the same period of the previous fiscal year). Major factors included income taxes paid of 11,012 million yen, offset by profit before tax of 18,642 million yen and depreciation and amortization of 9,864 million yen. (Cash flows from investing activities) Capital used for investing activities was 6,037 million yen (as compared to 5,014 million yen used in the same period of the previous fiscal year). This was mainly due to spending of 3,379 million yen on the purchase of intangible assets and 1,897 million yen on the purchase of property, plant and equipment. (Cash flows from financing activities) Capital used for financing activities was 17,191 million yen (as compared to 6,209 million yen used in the same period of the previous fiscal year). This was mainly due to dividends paid of 13,309 million yen.
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- 9 - 2. Condensed Consolidated Financial Statements (1) Condensed Consolidated Statements of Financial Position (In millions of yen ) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and cash equivalents 85,018 82,643 Trade and other receivables 205,573 205,206 Contract assets 31,475 35,399 Other financial assets 240 194 Other current assets 13,056 17,014 Total current assets 335,364 340,458 Non-current assets Contract assets 5,772 5,712 Property, plant and equipment 11,561 12,460 Right-of-use assets 54,034 51,303 Goodwill 94,019 95,366 Intangible assets 59,941 59,858 Investments accounted for using equity method 1,326 1,316 Other financial assets 26,004 28,173 Deferred tax assets 30,712 30,708 Other non-current assets 1,798 1,613 Total non-current assets 285,171 286,514 Total assets 620,535 626,972
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- 10 - (In millions of yen ) As of March 31, 2026 As of June 30, 2026 Liabilities and equity Liabilities Current liabilities Trade and other payables 121,279 128,722 Bonds and borrowings 20,745 22,546 Lease liabilities 20,138 19,810 Other financial liabilities 1,737 1,689 Income taxes payable 14,766 8,570 Provisions 1,280 2,046 Contract liabilities 8,259 9,543 Other current liabilities 123,062 125,341 Total current liabilities 311,269 318,271 Non-current liabilities Bonds and borrowings 11,889 11,897 Lease liabilities 31,339 29,106 Other financial liabilities 9,440 9,622 Provisions 8,423 7,677 Deferred tax liabilities 5,601 5,675 Other non-current liabilities 3,781 3,846 Total non-current liabilities 70,476 67,826 Total liabilities 381,746 386,097 Equity Share capital 17,479 17,479 Capital surplus -14,790 -14,125 Retained earnings 206,372 205,238 Treasury shares -10,261 -10,162 Other components of equity 20,699 22,990 Total equity attributable to owners of parent 219,499 221,420 Non-controlling interests 19,289 19,454 Total equity 238,788 240,875 Total liabilities and equity 620,535 626,972
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- 11 - (2) Condensed Consolidated Income Statements and Comprehensive Income Statements (Condensed Consolidated Income Statements) (In millions of yen ) Three months ended June 30, 2025 2026 Revenue 373,669 424,017 Cost of sales -285,213 -328,772 Gross profit 88,456 95,244 Selling, general and administrative expenses -73,049 -76,090 Other income 150 260 Other expenses -157 -533 Operating profit 15,400 18,880 Finance income 152 357 Finance costs -453 -801 Share of profit (loss) of investments accounted for using equity method 168 206 Profit before tax 15,269 18,642 Income tax expense -4,239 -6,015 Profit 11,029 12,626 Profit attributable to Owners of parent 10,662 12,190 Non-controlling interests 366 436 Profit 11,029 12,626 Earnings per share Basic earnings per share (yen) 4.86 5.54 Diluted earnings per share (yen) 4.81 5.46
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- 12 - (Condensed Consolidated Comprehensive Income Statements) (In millions of yen ) Three months ended June 30, 2025 2026 Profit 11,029 12,626 Other comprehensive income Items that will not be reclassified to profit or loss Financial assets measured at fair value through other comprehensive income 16 211 Remeasurements of defined benefit plans -19 -2 Total of items that will not be reclassified to profit or loss -2 208 Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations 763 2,120 Share of other comprehensive income of investments accounted for using equity method -6 － Total of items that may be reclassified to profit or loss 757 2,120 Other comprehensive income, net of tax 754 2,328 Comprehensive income 11,783 14,955 Comprehensive income attributable to Owners of parent 11,417 14,541 Non-controlling interests 365 413 Comprehensive income 11,783 14,955
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- 13 - (3) Condensed Consolidated Statements of Changes in Equity For the Three Months Ended June 30, 2025 (In millions of yen) Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity Exchange differences on translation of foreign operations Financial assets measured at fair value through other comprehensive income Balance at beginning of period 17,479 -7,728 185,466 -13,448 4,270 3,701 Profit － － 10,662 － － － Other comprehensive income － － － － 757 17 Comprehensive income － － 10,662 － 757 17 Purchase of treasury shares － － － -0 － － Disposal of treasury shares － 15 － 83 － － Dividends － － -11,092 － － － Share-based payment transactions － 812 － － － － Increase (decrease) by business combination － － － － － － Transfer from other components of equity to retained earnings － － － － － － Total transactions with owners － 827 -11,092 83 － － Balance at end of period 17,479 -6,901 185,036 -13,365 5,028 3,719 (In millions of yen) Equity attributable to owners of parent Non- controlling interests Total Other components of equity Total Remeasurement s of defined benefit plans Total Balance at beginning of period -107 7,864 189,633 16,749 206,382 Profit － － 10,662 366 11,029 Other comprehensive income -19 755 755 -0 754 Comprehensive income -19 755 11,417 365 11,783 Purchase of treasury shares － － -0 － -0 Disposal of treasury shares － － 98 － 98 Dividends － － -11,092 -208 -11,301 Share-based payment transactions － － 812 － 812 Increase (decrease) by business combination － － － － － Transfer from other components of equity to retained earnings － － － － － Total transactions with owners － － -10,181 -208 -10,390 Balance at end of period -127 8,620 190,869 16,906 207,775
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- 14 - For the Three Months Ended June 30, 2026 (In millions of yen) Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity Exchange differences on translation of foreign operations Financial assets measured at fair value through other comprehensive income Balance at beginning of period 17,479 -14,790 206,372 -10,261 18,600 2,169 Profit － － 12,190 － － － Other comprehensive income － － － － 2,142 210 Comprehensive income － － 12,190 － 2,142 210 Purchase of treasury shares － － － -0 － － Disposal of treasury shares － -35 － 99 － － Dividends － － -13,384 － － － Share-based payment transactions － 699 － － － － Increase (decrease) by business combination － － － － － － Transfer from other components of equity to retained earnings － － 60 － － -60 Total transactions with owners － 664 -13,323 99 － -60 Balance at end of period 17,479 -14,125 205,238 -10,162 20,743 2,319 (In millions of yen) Equity attributable to owners of parent Non- controlling interests Total Other components of equity Total Remeasurement s of defined benefit plans Total Balance at beginning of period -70 20,699 219,499 19,289 238,788 Profit － － 12,190 436 12,626 Other comprehensive income -2 2,351 2,351 -22 2,328 Comprehensive income -2 2,351 14,541 413 14,955 Purchase of treasury shares － － -0 － -0 Disposal of treasury shares － － 64 － 64 Dividends － － -13,384 -256 -13,640 Share-based payment transactions － － 699 － 699 Increase (decrease) by business combination － － － 8 8 Transfer from other components of equity to retained earnings － -60 － － － Total transactions with owners － -60 -12,620 -248 -12,868 Balance at end of period -72 22,990 221,420 19,454 240,875
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- 15 - (4) Condensed Consolidated Statements of Cash Flows (In millions of yen) Three months ended June 30, 2025 2026 Cash flows from operating activities Profit before tax 15,269 18,642 Depreciation and amortization 8,685 9,864 Decrease (increase) in trade and other receivables 3,011 1,963 Increase (decrease) in trade and other payables 3,122 6,599 Decrease (increase) in contract assets -651 -3,254 Decrease (increase) in prepaid expenses -2,253 -3,096 Increase (decrease) in accrued consumption taxes 4,041 5,738 Increase (decrease) in accrued bonus -10,970 -10,754 Increase (decrease) in accrued paid leave 1,998 2,469 Other 4,301 3,212 Subtotal 26,554 31,384 Interest and dividends received 248 452 Interest paid -241 -375 Income taxes refund (paid) -12,809 -11,012 Net cash provided by (used in) operating activities 13,751 20,448 Cash flows from investing activities Purchase of property, plant and equipment -835 -1,897 Purchase of intangible assets -3,250 -3,379 Purchase of investments -100 -356 Proceeds from sale and redemption of investments 4 245 Purchase of shares of subsidiaries resulting in change in scope of consolidation － -452 Other -832 -197 Net cash provided by (used in) investing activities -5,014 -6,037 Cash flows from financing activities Proceeds from short-term borrowings 20,000 22,000 Repayments of short-term borrowings － -10,000 Repayments of long-term borrowings -10,000 -10,182 Repayments of lease liabilities -4,976 -5,461 Purchase of treasury shares -0 -0 Dividends paid -11,031 -13,309 Other -200 -239 Net cash provided by (used in) financing activities -6,209 -17,191 Effect of exchange rate changes on cash and cash equivalents 91 406 Net increase (decrease) in cash and cash equivalents 2,618 -2,374 Cash and cash equivalents at beginning of period 82,818 85,018 Cash and cash equivalents at end of period 85,436 82,643
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- 16 - (5) Notes to Condensed Consolidated Financial Statements (Applicable Financial Reporting Framework) The condensed consolidated financial statement is prepared in compliance with Article 5, Paragraph 2 of the Standards for Preparation of Quarterly Financial Statements, etc. prescribed by Tokyo Stock Exchange, Inc. (excluding certain disclosures permitted to be omitted under Article 5, Paragraph 5 of the same Standards), and therefore omit some of the disclosures and notes required by International Accounting Standard (IAS) 34, “Interim Financial Reporting.” (Notes on Going Concern Assumption) Not applicable. (Change in Accounting Policies) (Condensed Consolidated Income Statements) Certain advertising expenses related to candidate acquisition for the placement business, such as listing advertisement expenses, which had previously been included in cost of sales, have been reclassified to selling, general and administrative expenses (S G&A expenses) beginning with the three months ended June 30, 2026. These candidate acquisition advertising expenses were previously considered to correspond to placement revenue in the short term. In recent years, however, the period from candidate registration through such advertisements to the recognition of placement revenue has lengthened. In addition, changes in user behavior have been observed, with users i ncreasingly registering for career services even before actively considering a job change. Furthermore, under the mid-term management plan of PERSOL CAREER CO., LTD., doda, which is offered by PERSOL CAREER CO., LTD. , is positioned to evolve from a conventional job change service into a career platform service. As a result, these advertising expenses have increasingly taken on the nature of upfront investments aimed at generating future revenue, and their relationship with revenue has become more indirect than before. In light of these circumstances, the Group reviewed the nature of these expenses and concluded that recognizing them as SG&A expenses rather than cost of sales would provide a more appropriate presentation of profit by stage. Accordingly, the accounting policy has been changed. This change in accounting policy has been applied retrospectively. As a result, in the condensed consolidated income statements for the three months ended June 30, 2025, cost of sales decreased by 1,991 million yen and SG&A expenses increased by the same amount. There was no impact on operating profit. In addition, there was no cumulative effect on equity at the beginning of the previous fiscal year and no impact on earnings per share for the previous fiscal year.
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- 17 - (Segment Information) (1) Overview of reportable segments The reportable segments are constituent parts of the Group for each of which separate financial information is available. The Board of Directors regularly reviews operations in each reportable segment to evaluate performance and determine the distribution of management resources. The Group aims to enhance its ability to formulate and pursue strategies, clarify responsibilities, make agile management decisions in response to rapidly changing business environments, and achieve further growth. To this end, the Group has five reportabl e segments: Staffing, BPO, Technology, Career and Asia Pacific. (Changes in reportable segments) Following an internal reorganization of the Group, certain businesses that had previously been included in the “Others” segment were reclassified to “Adjusted,” which are not attributable to any reportable segment, effective August 1, 2025. The segment information for the three months ended June 30, 2025 has been recalculated based on the revised classification method. (2) Information of reportable segments Profit in reportable segments is adjusted EBITDA (operating profit + depreciation /amortization (excluding rent and other equivalents from depreciation of right -of-use assets ) +(–) increase(decrease) in accrued paid leave + share -based payment expenses –(+) other income(expenses) –(+) other non-recurring profit(loss)). Intersegment revenues are based on prevailing market prices. For the Three Months Ended June 30, 2025 (In millions of yen) Reportable Segment Others *1 Total Adjusted *2 Consolidated Staffing BPO Technology Career Asia Pacific Total Revenue Revenue from external customers 150,985 32,019 26,868 38,712 115,421 364,006 9,670 373,677 -8 373,669 Intersegment revenue 2,041 1,970 2,390 636 － 7,039 3,519 10,558 -10,558 － Total 153,027 33,989 29,259 39,348 115,421 371,046 13,190 384,236 -10,566 373,669 Segment profit (loss) 10,254 1,265 867 10,451 2,102 24,942 -903 24,038 -2,260 21,777 Depreciation/amortization (excluding rent and other equivalents from depreciation of right-of-use assets) -3,567 Increase/decrease in accrued paid leave -1,988 Share-based payment expenses -814 Other income 150 Other expenses -157 Operating profit 15,400 Finance income 152 Finance costs -453 Share of profit (loss) of investments accounted for using equity method 168 Profit before tax 15,269
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- 18 - For the Three Months Ended June 30, 2026 (In millions of yen) Reportable Segment Others *1 Total Adjusted *2 Consolidated Staffing BPO Technology Career Asia Pacific Total Revenue Revenue from external customers 155,965 34,113 28,904 38,345 145,441 402,770 21,196 423,967 49 424,017 Intersegment revenue 2,291 1,823 2,275 332 0 6,722 3,558 10,281 -10,281 － Total 158,256 35,936 31,179 38,678 145,441 409,493 24,755 434,249 -10,231 424,017 Segment profit (loss) 11,674 1,257 1,238 9,351 4,121 27,644 -50 27,593 -1,105 26,488 Depreciation/amortization (excluding rent and other equivalents from depreciation of right-of-use assets) -4,249 Increase/decrease in accrued paid leave -2,385 Share-based payment expenses -699 Other income 260 Other expenses -533 Operating profit 18,880 Finance income 357 Finance costs -801 Share of profit (loss) of investments accounted for using equity method 206 Profit before tax 18,642 (Notes) 1. Others is a business segment that is not included in reportable segments, including operations related to the entire Group, education and training, operations related to persons with disabilities, the provision of digital solution services for hiring talents and managing human resources, and the creation of new businesses through incubation programs. 2. Adjusted is as follows: (Segment profit (loss)) (In millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Elimination of inter-segment transactions -39,277 -49,138 Corporate revenue*1 42,443 52,407 Corporate expenses*2 -5,426 -4,374 Total -2,260 -1,105 *1 Corporate revenue is mostly business management fees and dividend income from Group companies. *2 Corporate expenses are mostly expenses related to Group management at the Company.
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- 19 - (Earnings per Share) Basic earnings per share and diluted earnings per share are as follows: Three months ended June 30, 2025 Three months ended June 30, 2026 Profit attributable to owners of parent (million yen) 10,662 12,190 Adjustment to profit for the period (million yen) － － Profit used to calculate diluted earnings per share (million yen) 10,662 12,190 Weighted average number of common shares (thousand shares) 2,193,217 2,200,964 Increase in number of common shares Share-based compensation (thousand shares) 25,088 31,212 Weighted average number of common shares after dilution (thousand shares) 2,218,305 2,232,177 Basic earnings per share (yen) 4.86 5.54 Diluted earnings per share (yen) 4.81 5.46 (Significant Subsequent Events) Not applicable.