J Frontier Revises FY26 Forecast, Reports Special Loss

TOKYO, Jul 14 (Pulse News Wire) – J Frontier CO.,LTD. (2934.T) revised its fiscal year 2026 forecast and reported a special loss due to the amortization of goodwill related to its subsidiary EC Studio.

For the fiscal year ending May 31, 2026, the company expects revenue of ¥22.23 billion, EBITDA of ¥964 million, operating profit of ¥312 million, ordinary profit of ¥415 million, and net income attributable to parent shareholders of ¥ per share. This represents a decrease in net income compared to the previous forecast of ¥19.7 million per share. The revision was driven by the amortization of goodwill amounting to ¥435 million, which will be recorded as a special loss.

Additionally, the company noted that despite lower-than-expected sales due to a focus on advertising efficiency in customer acquisition strategies, EBITDA and operating profit are expected to remain largely consistent with earlier projections. However, ordinary profit is anticipated to exceed initial forecasts due to increased securities-related gains. The adjustments reflect adherence to the Accounting Standards Board's Practical Guide on Capital Consolidation Procedures, effective July 1, 2024, which mandates the amortization of goodwill.

This change impacts the company’s earnings outlook for the upcoming fiscal year.