CrowdWorks H1 FY2026 Operating Profit Sinks 73% to ¥218M as Revenue Edges Lower

CrowdWorks Inc. (TSE Growth: 3900), the operator of Japan's largest crowdsourcing and online-work matching platform, reported its first-half results for the fiscal year ending September 2026 — covering the six months from October 1, 2025 to March 31, 2026 — on May 14, 2026. The interim figures show a business holding its top line broadly flat while profitability compressed sharply. Revenue slipped 0.7% year-on-year to ¥11,116 million, while operating profit plunged 72.5% to ¥218 million from ¥793 million a year earlier. Ordinary (recurring) profit fell 63.3% to ¥285 million, and net profit attributable to owners of the parent dropped 70.4% to ¥89 million from ¥303 million. Basic earnings per share came in at ¥5.68 (diluted ¥5.66), down from ¥19.22 a year earlier.

Gross profit edged down 2.1% to ¥4,633 million, broadly in line with the modest revenue decline. The company's own Non-GAAP EBITDA measure — which adjusts for share-based compensation, depreciation and goodwill amortization, and one-off items — fell 58.1% to ¥495 million from ¥1,181 million. The steep drop in operating-level profitability against a near-flat top line points to higher cost intensity during the half, with the prior-year base also reflecting a period of strong 37.9% revenue growth that proved difficult to repeat. Comprehensive income for the half came in at ¥99 million, down 68.0%.

Consolidation scope narrows as two subsidiaries are deconsolidated

The interim period saw a material change in the scope of consolidation: CrowdWorks deconsolidated two subsidiaries — CLOCK・IT Inc. and AI tech Inc. — with no new entities added. The narrowing of the group structure is consistent with the lower full-year revenue guidance and helps explain the divergence between the modestly lower interim revenue and the sharper double-digit decline forecast for the full year. As a platform operator, CrowdWorks connects companies with a large pool of freelancers and remote workers across writing, design, development, and other categories, generating revenue primarily through transaction fees and adjacent agency and staffing services.

Balance sheet steady; equity ratio improves to 43%

Total assets stood at ¥14,977 million at the interim balance-sheet date, down from ¥15,690 million at the prior fiscal year-end. Net assets rose modestly to ¥6,859 million from ¥6,746 million, while shareholders' (own) equity increased to ¥6,478 million from ¥6,381 million. As a result, the equity ratio improved to 43.3% from 40.7%, indicating a steady and slightly strengthened capital base despite the weaker earnings. CrowdWorks declared no interim dividend (¥0.00), unchanged from the prior year, consistent with its growth-stage profile on the TSE Growth Market.

Full-year guidance points to lower revenue and a possible operating loss

For the full fiscal year ending September 30, 2026, CrowdWorks guides revenue to ¥20,000 million, a decline of 11.7%, with gross profit of ¥8,400 million (-12.2%). The company forecasts a full-year operating result in a range from a loss of ¥1,000 million to break-even (¥0), and a Non-GAAP EBITDA range of -¥350 million to ¥650 million, while declining to provide point estimates for ordinary profit and net profit. The wide guidance band reflects both the deconsolidation effect and ongoing investment, signalling a transitional year in which management prioritizes repositioning the platform business over near-term profitability. The annual dividend forecast remains at ¥0.00, with no revision to previously announced guidance.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.