Key Positives From The Results
New PHR service contracts within the Disease Solutions business contributed to revenue of JPY 376M, up +30.7% YoY, marking an acceleration. Growth was underpinned by capturing pharmaceutical DX demand and expanding PHR platform contracts in new therapeutic areas, with gross profit margin maintained at a high level of 67.9% (▲1.6pt YoY).
- Disease Solutions Revenue:JPY 244M (+81.2% YoY). New PHR service contracts from pharmaceutical companies increased, expanding disease coverage across the PSP and ePRO domains
- Gross Profit:JPY 255M (+27.8% YoY). Platform development investment improved gross profit margins on related products
- Net Loss Attributable To Owners Of Parent Company:▲JPY 223M (vs. ▲JPY 243M in the prior year); loss per share narrowed to ▲JPY 26.70 (vs. ▲JPY 29.44)
- PHR Platform Enhancement:MynaPortal integration expanded PHR platform functionality; a patient-facing medical information platform in collaboration with PMDA is set to launch in April 2026
- Expanding User Base:33,927 registered primary care facilities and approximately 1.25M app downloads, with the usage base continuing to grow
Key Concerns From The Results
2Q cumulative progress against the full-year revenue target of JPY 1,466M stands at just 25.6%. While the company has historically exhibited a strong Q4 skew, achieving the plan requires H2 revenue of JPY 1,090M (~2.9x H1), setting a high bar for plan achievement. The equity ratio of 6.7% also warrants attention given limited financial headroom.
- Welby MyKarte Service Revenue:JPY 132M (▲13.7% YoY). Impacted by project timing slippage and longer lead times associated with larger-scale contracts
- Operating Loss:▲JPY 256M (vs. ▲JPY 249M in the prior year), with the deficit widening. SG&A of JPY 512M (+13.9% YoY) outpaced revenue growth
- Cash And Deposits:JPY 435M (▲JPY 275M vs. prior FY-end). The company drew JPY 200M in new short-term borrowings, flagging the need to monitor liquidity management
- Weakened Capital Base:Shareholders' equity of JPY 56M, equity ratio of 6.7% (vs. 20.9% at prior FY-end). Accumulated deficit widened to ▲JPY 2,657M
- Dilution Risk:JPY 317M in convertible bonds with share acquisition rights remain outstanding, presenting ongoing dilution risk
Focus Areas / Items To Monitor Going Forward
- Achieving the full-year revenue target of JPY 1,466M requires JPY 1,090M in H2. Over the past three fiscal years, H2 accounted for 59–65% of annual revenue; this year, 74%+ must come from H2, making the specifics of the order/revenue pipeline from Q3 onward the single most critical issue
- Status of the Disease Solutions pipeline buildup for pharmaceutical clients, and the outlook for recovering Welby MyKarte timing-slipped projects in H2
- With an equity ratio of 6.7% and cash of JPY 435M, the potential need for additional capital raises and their timing/structure
- Breakdown and order confidence level of the H2 pipeline against the full-year revenue target of JPY 1,466M
- Specific expected booking timeline for the timing-slipped Welby MyKarte projects
- Revenue contribution scale from the oncology domain within Disease Solutions and its medium-term growth potential
- Background behind the JPY 200M short-term borrowing and future liquidity plans
- Conversion progress on the JPY 317M convertible bonds with share acquisition rights and the outlook for future conversions
- Expected timing of revenue contribution from insurer-oriented solutions (WeeMeX collaboration and FreeStyle Libre utilization business)
- Breakdown of JPY 98M in upfront investments and the payback timeline
- Drivers for H2 profitability turnaround against the full-year operating loss target of ▲JPY 30M
- Progress on the occupational health domain under the capital and business alliance with Nippon Life
Key Financial Highlights
| Item | Value | YoY |
|---|---|---|
| Revenue | JPY 376M | +30.7% |
| └ Disease Solutions Service | JPY 244M | +81.2% |
| └ Welby MyKarte Service | JPY 132M | ▲13.7% |
| Cost of Goods Sold | JPY 120M | +37.4% |
| Gross Profit | JPY 255M | +27.8% |
| SG&A | JPY 512M | +13.9% |
| Operating Loss | ▲JPY 256M | - |
| Recurring Loss | ▲JPY 257M | - |
| Net Loss Attributable to Owners of Parent Company (Interim) | ▲JPY 223M | - |
| EPS | ▲JPY 26.70 | - |
| Gross Profit Margin | 67.9% | ▲1.6pt |
In the prior-year period, the company recorded an operating loss of ▲JPY 249M, a recurring loss of ▲JPY 250M, and a net loss of ▲JPY 243M. While revenue grew +30.7%, the SG&A increase pushed the operating loss wider by ▲JPY 6M. However, the booking of JPY 18M in reversal gains on share acquisition rights and the occurrence of ▲JPY 14M in non-controlling interest losses resulted in a JPY 19M YoY improvement in net loss attributable to owners of the parent.
Performance By Business Segment
The group operates as a single segment: the PHR Platform Services business. Disclosure is broken down into two service categories: Disease Solutions Service and Welby MyKarte Service. Disease Solutions surged +81.2%, driven by new PHR service contracts from pharmaceutical companies. Welby MyKarte declined ▲13.7% due to project timing slippage and longer lead times associated with larger-scale contracts.
Segment Performance Table
| Segment | Revenue | YoY | Operating Income | YoY | Margin |
|---|---|---|---|---|---|
| PHR Platform Services (Company-Wide) | JPY 376M | +30.7% | ▲JPY 256M | - | - |
- Disease Solutions Service: Revenue of JPY 244M (+81.2% YoY). Captured PSP and ePRO demand in new drug promotions for pharmaceutical companies, expanding the disease coverage beyond lifestyle diseases into autoimmune diseases, rare diseases, oncology, and other therapeutic areas
- Oncology Domain: Demand from pharmaceutical companies for symptom and side-effect monitoring of new drugs has materialized. Clinical implementation is expanding with an increasing number of contracted medical institutions for MyKarte ONC
- Welby MyKarte Service: Revenue of JPY 132M (▲13.7% YoY). Impacted by longer lead times from larger-scale contracts and timing slippage on select projects. Management notes that underlying demand remains robust
Progress Versus Full-Year Guidance
2Q cumulative progress against full-year revenue of JPY 1,466M stands at 25.6%. Over the past three fiscal years (FY12/2023–FY12/2025), H1 revenue accounted for 35–45% of the annual total, making this year's 25.6% below historical norms. Against the full-year operating loss target of ▲JPY 30M, the company has already recorded ▲JPY 256M through 2Q, requiring generation of JPY 226M in Operating Income in H2. While the company has a Q4-heavy revenue structure (Q4 accounted for 40.1% of revenue in FY12/2025), achieving the plan demands an even greater H2 concentration than historical precedent.
| Item | Value (2Q Cumulative) | Full-Year Forecast | Progress Rate |
|---|---|---|---|
| Revenue | JPY 376M | JPY 1,466M | 25.6% |
| Operating Income | ▲JPY 256M | ▲JPY 30M | - |
- Over the past three fiscal years, Q4 accounted for 39.8–43.7% of quarterly revenue, reflecting a pronounced H2 skew. This structure is linked to pharmaceutical companies' budget execution cycles, with revenue concentrating toward fiscal year-end
- In FY12/2025, Q2 recorded a 26.3% revenue share, but Q3 dropped to 14.6%, highlighting significant quarter-to-quarter volatility
Changes To Guidance
No change from the full-year guidance announced on February 24, 2026. Revenue of JPY 1,466M (+130.5% YoY) and operating loss of ▲JPY 30M are maintained.
Commentary On Shareholder Returns
The FY12/2026 dividend forecast remains at JPY 0 for both interim and year-end, maintaining a zero-dividend policy. Eliminating accumulated losses remains the priority, and there is no near-term prospect of dividend initiation.
Financial Position
Partial conversion of convertible bonds with share acquisition rights increased share capital and capital surplus by JPY 30M each, but net assets declined to JPY 108M following the interim net loss of ▲JPY 223M. The company secured working capital through JPY 200M in new short-term borrowings.
- Key Figures
- Leverage Metrics
| Item | Value | Additional Information |
|---|---|---|
| Cash and Deposits | JPY 435M | ▲JPY 275M vs. prior FY-end |
| Total Assets | JPY 844M | ▲JPY 210M vs. prior FY-end |
| └ Total Current Assets | JPY 593M | ▲JPY 284M vs. prior FY-end |
| └ Total Non-Current Assets | JPY 250M | +JPY 74M vs. prior FY-end |
| Shareholders' Equity | JPY 56M | ▲JPY 164M vs. prior FY-end |
| Total Interest-Bearing Debt | JPY 535M | Short-term borrowings 200 + Current portion of long-term debt 17 + CB 317 |
| └ Short-Term Borrowings | JPY 200M | Newly procured |
| └ Convertible Bonds with Share Acquisition Rights | JPY 317M | ▲JPY 60M vs. prior FY-end (conversion rights exercised) |
| Retained Earnings | ▲JPY 2,657M | ▲JPY 223M vs. prior FY-end |
News Released Alongside The Earnings Announcement
None
Major Announcements During The Quarter
- 2026/05/14Welby launched "Home Medical Encyclopedia" content on its pharmaceutical information site "Kotokoto." This enhances the value of the patient-facing medical information platform launched in April 2026 Welby launches "Home Medical Encyclopedia" medical information content on pharmaceutical information site "Kotokoto"
- 2026/05/15Clinical efficacy of cancer patient monitoring using ePRO, including "Welby MyKarte ONC," was published in an international academic journal. The ePRO group demonstrated statistically significant survival prolongation, strengthening the evidence base for the oncology domain "Welby MyKarte ONC" symptom-related ePRO cancer patient monitoring clinical efficacy published in International Journal of Clinical Oncology
- 2026/06/03Welby Group and WeeMeX began collaboration on "deemed health checkup" services for insurers under the PHC Holdings umbrella. This marks the first initiative in health checkup DX and insurer-oriented service expansion Welby Group and WeeMeX launch new collaboration in insurer-oriented business
Large-Shareholding Filings / Material Proposals Over The Past Year
- Milestone Capital Management: 0% → 19.93% (2025/12/04) → 19.66% (2026/03/18) — Pure investment purpose, no material proposals. Initial acquisition through subscription of convertible bonds with share acquisition rights via third-party allotment,
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