Haruo Amano
Executive VP & Director

Hi. I'm Haruo Amano, Director of HENNGE. Thank you for watching our financial results video for the second quarter of fiscal year 2026. Today, our CFO, Ryo Kobayashi, will explain our financial results for the second quarter of FY 2026 and the progress against our full year forecast. Then, I will explain our growth strategy. Following that, our Executive Officer in charge of product strategy, Takeru Imaizumi, will explain about the future vision of HENNGE One.

Ryo Kobayashi
Operating Officer of Finance and Accounting Division

Hi, I'm Ryo, CFO of HENNGE. First, let me explain the financial results for the second quarter of FY 2026. This is the summary of our consolidated financial results. Results of the second quarter are progressing well against the full year forecast, which was disclosed on November 7, 2025. Our quarterly consolidated net sales are as presented on the slide.

Since the net sales of HENNGE One business is recurring in nature, it has been increasing throughout each quarter. Our year-on-year consolidated net sales are as presented on the slide. Our quarterly gross profit and gross profit margin are as presented on the slide. Our year-on-year gross profit and gross profit margin are as presented on the slide. Gross profit margin increased mainly due to higher ARPU, maintaining a high level.

The quarter-on-quarter breakdown of operating expenses is as presented on the slide. The year-on-year breakdown of operating expenses is as presented on the slide. In accordance with our policy for FY 2026, we have been increasing headcount and taking active advertising initiatives as a preparation for the future