Ridge-i Inc. revises Q2 earnings forecast, sees significant profit increase

TOKYO, Mar 09 (Pulse News Wire) – Ridge-i Inc. (5572.T) revised its fiscal 2026 July-term second quarter (interim) consolidated earnings forecast, projecting a substantial rise in operating profit compared to previous estimates.

The updated forecast covers the period from August 1, 2025, to January 31, 2026. Previously, the company had projected interim sales of ¥1.26 billion, operating income of ¥120 million, ordinary income of ¥120 million, and net income attributable to parent shareholders of ¥70 million per share. However, the latest forecast now predicts sales of ¥1.15 billion, operating income of ¥170 million, ordinary income of ¥168 million, and net income of ¥105 million per share. Operating profit is expected to grow by 41.7% from initial projections due to higher gross margins and increased employee utilization rates driven by larger and longer-term projects.

In particular, the surge in demand for AI-related consulting and development services has led to continued orders from major existing clients and the commencement of projects with SBI Holdings Co., Ltd., resulting in more extensive and prolonged cases. While digital marketing revenue recovery remains slower than anticipated, leading to a slight decrease in overall sales, the company expects a significant boost in profitability across key metrics. Looking ahead, Ridge-i plans to accelerate the acquisition of generative AI projects and expand satellite solutions to further enhance service offerings and drive performance improvements. Notably, the revised outlook underscores a robust growth trajectory, though the company cautions that future results could vary based on unforeseen factors.

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