TOKYO, May 29 (Pulse News Wire) – SHIFT Inc. (3697.T) announced expected non-operating expenses and special losses for its fiscal third quarter ending May 31, 2026.
The company anticipates recognizing impairment losses related to its equity method affiliate, Rise Consulting Group Co., Ltd., amounting to approximately ¥4.500 billion. Additionally, impairment losses on investment securities, specifically shares of Gurunavi Inc., are estimated at around ¥300 million. In individual financial statements, the impairment loss calculation is primarily based on market prices. However, for consolidated financial statements, the assessment considers factors such as the affiliate's business plans, leading to potentially differing figures compared to individual calculations.
The company also expects to record investment losses from the equity method as operating expenses in consolidated results, though the precise amount remains under review. Regarding future outlook, the preliminary estimates are subject to changes based on ongoing market conditions and audit reviews. Final figures will be disclosed during the scheduled earnings release on July 15, 2026. Any significant impact on the group’s performance or financial status due to these impairments will be promptly communicated once determined.
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