Tsuji Hongo IT Consulting Co., Ltd. 3Q Earnings Preview

H2 revenue acceleration driven by security demand and ITOCHU synergies under scrutiny; focus on OPM recovery following the roll-off of listing-related costs

PublishedAugust 12, 2026 at 15:30 GMT+9

Summary

Tsuji Hongo IT Consulting operates a single-segment "DX Platform Business" rooted in the Tsuji Hongo Tax Corporation group, occupying a unique position by leveraging its accounting firm network to deliver consulting services and software sales. H1 cumulative revenue reached only 40.0% of the full-year target, and operating income achieved just 26.6%, making 3Q the critical checkpoint for whether the company's inherently H2-weighted earnings structure will materialize as planned. Listing-related expenses and upfront human capital investments appear to have been front-loaded through 2Q, setting up a potential margin inflection from 3Q onward as cost headwinds subside and top-line growth accelerates. The expansion of large and mid-cap enterprise orders through the capital and business alliance with ITOCHU Corporation, combined with the buildout of a professional-network-driven revenue base via the withDX platform, serve as key indicators for assessing the quality of the company's growth trajectory.

Key Points for Next Quarter

Key Points & Focus	Implications
Revenue Growth3Q cumulative revenue progress rate vs. full-year guidance of JPY 2,913M	H1 progress was only 40.0%, reflecting H2-weighted seasonality. Reaching >65% cumulative (~JPY 1,893M) by 3Q would significantly raise confidence in full-year guidance achievement
OPM Recovery3Q standalone OPM (H1 cumulative: 9.9%)	Achieving the full-year OPM target of 14.7% requires an H2 OPM of 18.0% (our estimate). A decline in the SG&A ratio driven by the roll-off of listing costs is the key variable
SG&A ControlYoY SG&A growth rate and SG&A-to-revenue ratio	H1 cumulative SG&A was JPY 472M (+18.9% YoY). Expect moderation as human capital investments begin to bear fruit and IPO-related costs dissipate
ITOCHU SynergiesOrder trends for large and mid-cap enterprises	The depth of the deal pipeline from collaboration with ITOCHU (23.12% ownership stake) will be a key determinant of medium- to long-term revenue growth
withDX Platform ExpansionNumber of withDX member professional firms and advisory client DX engagements	~100 firms had joined as of June 2026. Network expansion broadening revenue opportunities from advisory clients is a medium-term growth driver
Unauthorized Access Loss ProvisionsStatus of JPY 71M provision	Entire amount remained on the balance sheet at the end of 2Q. Any reversal or additional provisioning could impact the P&L
Capital EfficiencyBalance between ROE and equity ratio	IPO proceeds lifted the equity ratio to 76.0%. While interest-bearing debt reduction has progressed, improving the ROE level (~9.4% annualized, our estimate) remains a challenge

Key Issues from Previous Results (FY09/2026 2Q)

H1 cumulative results showed revenue of JPY 1,164M (+14.2% YoY), maintaining top-line momentum, but operating income declined to JPY 114M (▲25.0% YoY) due to listing-related costs and human capital investments. Full-year guidance was left unchanged, implying H2 targets of JPY 1,749M in revenue and JPY 314M in operating income (both our estimates).

1. Achievability of the H2-Weighted Full-Year Plan

Previous Period:
H1 cumulative revenue JPY 1,164M (40.0% of full-year guidance of JPY 2,913M), operating income JPY 114M (26.6% of JPY 428M)
This Quarter's Focus:
Whether 3Q standalone revenue can reach ~JPY 875M (our estimate, based on pro-rata allocation of the full-year plan). Whether the tendency for deal closings to cluster at period-end supports the rationale for H2 weighting
Key Metric:
3Q cumulative guidance achievement rate (targets: >65% for revenue, >55% for operating income)

H1 cumulative guidance achievement rates of 40.0% for revenue and 26.6% for operating income are notably low, making the H2 earnings ramp the single most critical issue for full-year guidance.

2. OPM Recovery Following Roll-Off of Listing-Related Costs

Previous Period:
SG&A JPY 472M (+18.9% YoY), gross profit margin 50.4% (▲3.5pp from 53.9% in the prior-year period)
This Quarter's Focus:
Completion of listing-related cost recognition and translation of headcount additions into revenue contribution. Whether 3Q standalone OPM approaches the full-year target of 14.7%
Key Metric:
3Q standalone SG&A ratio (H1 cumulative: 40.5%) — magnitude of improvement

H1 cumulative OPM fell to 9.9%, down ▲5.1pp from 15.0% in the prior-year period. The primary drivers were one-time IPO-related expenses and human capital investments; normalization of the cost base needs to be confirmed in 3Q.

3. Expansion of Security Consulting Orders

Previous Period:
Security consulting order growth was a key contributor to the +14.2% H1 revenue increase
This Quarter's Focus:
Progress on upsizing and converting security consulting engagements into recurring mandates during 3Q. Whether regulatory tailwinds — such as the FSA's frontier AI compliance requirements — provide additional impetus
Key Metric:
Whether YoY revenue growth accelerates beyond the +14.2% recorded in H1

Against the backdrop of increasingly sophisticated cyberattacks, demand is growing for enhanced cybersecurity measures and information security framework rebuilds. The company's risk assessment and technical/organizational security advisory capabilities are emerging as clear growth drivers.

4. Synergies from the Capital and Business Alliance with ITOCHU

Previous Period:
ITOCHU synergies drove increased orders from large and mid-cap enterprises (no quantitative disclosure)
This Quarter's Focus:
Trends in average deal size and volume for large enterprise engagements, and progress on cross-selling to ITOCHU group companies
Key Metric:
Shifts in revenue mix by customer segment (expansion of large/mid-cap enterprise share)

ITOCHU Corporation holds a 23.12% stake, making it one of the top shareholders, and is expected to expand order channels targeting large and mid-cap enterprises. Synergy-driven order growth was referenced in the 2Q results, and concrete deal accumulation from 3Q onward will be closely watched.

5. Monetization Progress of the withDX Platform

Previous Period:
withDX acceleration program launched in earnest in June; SoLabo joined as a participant
This Quarter's Focus:
Pace of growth in member firms and track record of DX support cross-selling to advisory clients
Key Metric:
Revenue contribution via withDX (currently undisclosed; watch for commentary from 3Q onward)

The withDX platform — a DX support service for professional firms — officially launched in January 2026 and had approximately 100 professional firms participating as of June. The full-scale launch of the acceleration program and expansion of the partner network are advancing the construction of a medium-term revenue base.

Timely Disclosure & Industry Trends

2026/07/28
Added freee Accounting support to the training platform "Jitsutore for Accounting Firms" — Now supports four SaaS products following Yayoi, MoneyForward, and MJS, enhancing the comprehensiveness of the accounting firm training platform. Could contribute to expansion of recurring revenue. Added freee Accounting Training to "Jitsutore for Accounting Firms"
2026/06/26
SoLabo joined the withDX acceleration program — SoLabo's participation, with its offerings in loan advisory, subsidy support, and outsourced CFO services, expands the withDX service lineup and enhances the value proposition of the professional firm network. SoLabo Joins withDX Acceleration Program
2026/06/23
Full-scale launch of the withDX acceleration program — With ~100 professional firms participating, this initiative builds a DX support framework for mid-sized and SME clients through collaboration with accounting firms. A critical milestone toward monetizing the platform business model. Full-Scale Launch of withDX Acceleration Program
2026/06/15
Launched the "J-Float Certification System" under the J-Float Project — A certification and support program for overseas expansion of Japanese-made software. Near-term revenue impact is limited, but strategically significant as an extension of the IT support domain. J-Float Project "J-Float Certification System" Launched

Previous Quarter Results (FY09/2026 2Q Actuals)

Tsuji Hongo IT Consulting is an IT consulting firm rooted in the Tsuji Hongo Tax Corporation Group, operating a single-segment "DX Platform Business." Leveraging its accounting firm network, the company provides security consulting, back-office operations support, and software sales. The company listed on the TSE Standard Market in December 2025, raising approximately JPY 588M through its IPO. Its medium-term growth strategy centers on two pillars: expanding order channels for large and mid-cap enterprises through the capital and business alliance with ITOCHU Corporation, and building a professional-network-driven revenue base via the withDX platform. H1 cumulative results secured +14.2% revenue growth on the back of strong security consulting orders and expanded software sales, but operating income declined due to listing-related costs and human capital investments.

Item	Amount	YoY	vs. Guidance	Notes
Revenue	JPY 1,164M	+14.2%	-	Security consulting order growth; large enterprise expansion via ITOCHU synergies
Operating Income	JPY 114M	▲25.0%	-	Decline driven by listing-related costs and human capital investments. OPM 9.9% (prior-year period: 15.0%)
Recurring Profit	JPY 118M	▲25.3%	-	Lower interest expense (▲JPY 1M) insufficient to offset operating income decline
Net Income	JPY 78M	▲28.2%	-	Effective tax rate 33.7% (prior-year period: 30.2%)
EPS	JPY 41.84	▲35.2%	-	Also impacted by share count increase from IPO (weighted average: 1,874K shares vs. 1,691K shares in prior-year period)

Guidance Achievement Rate (Full-Year): Revenue 40.0%, operating income 26.6%, recurring profit 27.6%, net income 26.0% (prior-year same-period progress rates vs. full-year actuals are undisclosed, precluding comparison)

Tsuji Hongo IT Consulting Co., Ltd.