TWOSTONE&Sons Announces Q2 FY08/2026 Financial Results: Continued Hiring Investment for Mid-to-Long-Term Business Expansion, Core Business Revenue Hits Record High for 27 Consecutive Quarters
TWOSTONE&Sons announced its Q2 FY08/2026 results with quarterly revenue at 4,921 million JPY (up 3.1% YoY). While operating profit recorded a loss of 105 million JPY due to aggressive upfront hiring investments, the core engineer matching business achieved record sales for 27 consecutive quarters, and they announced a year-end dividend increase.
📋 Article Processing Timeline
- 📰 Published: April 15, 2026 at 00:30
- 🔍 Collected: April 14, 2026 at 16:01
- 🤖 AI Analyzed: April 19, 2026 at 15:47 (119h 46m after Collected)
TWOSTONE&Sons Inc. (Headquarters: Shibuya-ku, Tokyo, Representative Director and CEO: Yasushi Kawabata, Representative Director and COO: Katsuya Takahara, Securities Code: 7352, hereinafter "the Company") announced its financial results for the second quarter of the fiscal year ending August 2026 today, April 14, 2026.
■ FY08/2026 Q2 Financial Results Summary
・Q2 Accounting Period Results
Quarterly sales landed at 4,921 million yen, an increase of 149 million yen (up 3.1%) year-on-year. Although the sales growth rate for the current period has slowed, partly due to the impact of closing a large M&A advisory deal in the consulting and advisory business in the previous period, sales in the core engineer matching business have continued to hit record highs for 27 consecutive quarters.
In the second quarter, we continued to execute hiring investments aimed at mid-to-long-term business expansion. As a result of mainly investing in the hiring of full-time engineers and consulting personnel, the hiring investment amount increased by 138 million yen year-on-year.
As a result of aggressive strategic investments, SG&A expenses increased by 585 million yen year-on-year, and operating profit landed at a loss of 105 million yen.
Although the operating profit for the quarter was negative, we consider profit return accompanying corporate growth as an important management issue, and we have decided to increase the dividend at the end of this fiscal year.
We will accelerate aggressive investments in the third quarter as well, aiming for further expansion of business scale.
・Outlook for Q3 FY08/2026 and Beyond
From the third quarter onward, we will continue aggressive management looking ahead to mid-to-long-term growth, and promote various growth measures that will drive revenue expansion in the fiscal year ending August 2027.
To that end, in parallel with scaling up existing businesses, we will strengthen the recruitment of executive management candidates who will become new growth engines. By planning and executing new businesses that leverage our strengths, such as engineering and marketing capabilities, we hope to achieve sustainable and discontinuous business growth.
Regarding M&A, we will continue to aim at accelerating strategic M&A, focusing primarily on roll-up M&A in peripheral areas of our business.
By combining the growth of existing businesses with the discontinuous growth from M&A, we will conduct management conscious of dramatic growth and the maximization of corporate value.
■ Focus Points and Progress for FY08/2026
For the fiscal year ending August 2026, we have set three focus points: "aggressive investment in existing businesses," "execution of strategic M&A making full use of roll-ups," and "strengthening governance."
First, regarding "aggressive investment in existing businesses," the number of active engineers increased by 10.1% year-on-year, continuing the consecutive renewal of sales records in the engineer matching business. In addition, we made aggressive hiring investments in the second quarter, continuing from the first quarter. By hiring 41 full-time engineers and 17 consulting personnel, we believe we have built a growth foundation for mid-to-long-term revenue expansion. We intend to use this talent to accelerate the growth speed of the entire group.
Next, regarding the "execution of strategic M&A making full use of roll-ups," the number of M&A cases considered was 280, a 39.3% increase year-on-year, showing an expanding pipeline. Also, in the second quarter, we closed the M&A of FAM Inc., our first to utilize a share exchange. By adopting a share exchange, we believe we have been able to execute strategic M&A conscious of optimizing capital efficiency. We will continue to actively consider and execute M&As.
Finally, regarding "strengthening governance," we are continuing PMI for acquired companies and advancing management efficiency, including considering mergers of group companies. Starting this term, we are strengthening our management structure by appointing Mr. Hasegawa, formerly an external director, as an internal director. We will continue to conduct management conscious of improving corporate value through the reinforcement of management discipline and the enhancement of governance.
■ Detailed Information
▼ For details, please check the materials posted on our IR page.
https://twostone-s.com/ir/
▼ We will hold the Q2 Financial Results Briefing today.
・Overview: FY08/2026 Q2 Financial Results Briefing
・Date and Time: Tuesday, April 14, 2026, 19:30-
・Speaker: Representative Director and CEO, Yasushi Kawabata
・Registration Page: https://zoom.us/webinar/register/WN_rKGrPHbzR7aeEWIN0djfyA
The company will continue to "question unreasonable common sense and create new, reasonable common sense"
■ FY08/2026 Q2 Financial Results Summary
・Q2 Accounting Period Results
Quarterly sales landed at 4,921 million yen, an increase of 149 million yen (up 3.1%) year-on-year. Although the sales growth rate for the current period has slowed, partly due to the impact of closing a large M&A advisory deal in the consulting and advisory business in the previous period, sales in the core engineer matching business have continued to hit record highs for 27 consecutive quarters.
In the second quarter, we continued to execute hiring investments aimed at mid-to-long-term business expansion. As a result of mainly investing in the hiring of full-time engineers and consulting personnel, the hiring investment amount increased by 138 million yen year-on-year.
As a result of aggressive strategic investments, SG&A expenses increased by 585 million yen year-on-year, and operating profit landed at a loss of 105 million yen.
Although the operating profit for the quarter was negative, we consider profit return accompanying corporate growth as an important management issue, and we have decided to increase the dividend at the end of this fiscal year.
We will accelerate aggressive investments in the third quarter as well, aiming for further expansion of business scale.
・Outlook for Q3 FY08/2026 and Beyond
From the third quarter onward, we will continue aggressive management looking ahead to mid-to-long-term growth, and promote various growth measures that will drive revenue expansion in the fiscal year ending August 2027.
To that end, in parallel with scaling up existing businesses, we will strengthen the recruitment of executive management candidates who will become new growth engines. By planning and executing new businesses that leverage our strengths, such as engineering and marketing capabilities, we hope to achieve sustainable and discontinuous business growth.
Regarding M&A, we will continue to aim at accelerating strategic M&A, focusing primarily on roll-up M&A in peripheral areas of our business.
By combining the growth of existing businesses with the discontinuous growth from M&A, we will conduct management conscious of dramatic growth and the maximization of corporate value.
■ Focus Points and Progress for FY08/2026
For the fiscal year ending August 2026, we have set three focus points: "aggressive investment in existing businesses," "execution of strategic M&A making full use of roll-ups," and "strengthening governance."
First, regarding "aggressive investment in existing businesses," the number of active engineers increased by 10.1% year-on-year, continuing the consecutive renewal of sales records in the engineer matching business. In addition, we made aggressive hiring investments in the second quarter, continuing from the first quarter. By hiring 41 full-time engineers and 17 consulting personnel, we believe we have built a growth foundation for mid-to-long-term revenue expansion. We intend to use this talent to accelerate the growth speed of the entire group.
Next, regarding the "execution of strategic M&A making full use of roll-ups," the number of M&A cases considered was 280, a 39.3% increase year-on-year, showing an expanding pipeline. Also, in the second quarter, we closed the M&A of FAM Inc., our first to utilize a share exchange. By adopting a share exchange, we believe we have been able to execute strategic M&A conscious of optimizing capital efficiency. We will continue to actively consider and execute M&As.
Finally, regarding "strengthening governance," we are continuing PMI for acquired companies and advancing management efficiency, including considering mergers of group companies. Starting this term, we are strengthening our management structure by appointing Mr. Hasegawa, formerly an external director, as an internal director. We will continue to conduct management conscious of improving corporate value through the reinforcement of management discipline and the enhancement of governance.
■ Detailed Information
▼ For details, please check the materials posted on our IR page.
https://twostone-s.com/ir/
▼ We will hold the Q2 Financial Results Briefing today.
・Overview: FY08/2026 Q2 Financial Results Briefing
・Date and Time: Tuesday, April 14, 2026, 19:30-
・Speaker: Representative Director and CEO, Yasushi Kawabata
・Registration Page: https://zoom.us/webinar/register/WN_rKGrPHbzR7aeEWIN0djfyA
The company will continue to "question unreasonable common sense and create new, reasonable common sense"