Digital Cube Co., Ltd. Cuts Forecast — All Profits Turn to Loss as Revenue Falls 7.8%
Digital Cube Co., Ltd. (TSE:263A0) has sharply revised its earnings forecast for FY2026 (ending March 31, 2026). Revenue is cut 7.8% and all profit lines swing into the red, driven by rising labor and outsourcing costs and a higher mix of lower-margin reseller sales.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 715m | JPY 659m | △JPY 56m (△7.8%) |
| Operating Profit | JPY 3m | △JPY 64m (loss) | Swing to loss |
| Ordinary Income | JPY 2m | △JPY 66m (loss) | Swing to loss |
| Net Profit | JPY 1m | △JPY 66m (loss) | Swing to loss |
| EPS | JPY 3.47 | △JPY 112.92 (loss) | Swing to loss |
The company cited price adjustments in hosting services, which led to higher revenue compared to the prior year, and cost-cutting measures that improved expense outlook. However, declining gross margins due to rising labor and outsourcing costs, along with increased reseller sales ratios, pressured profitability.
The downward revision reflects reduced revenue and margin compression, which impacted operating profit. Investors should monitor the company’s ability to further cut costs and improve profitability to sustain growth.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.