SHIFT, Inc.Operating and net profit fell despite revenue growth, pressured by higher hiring costs and an equity-method investment loss.

Shares of software quality assurance firm SHIFT have climbed more than 30% over the past month, closing at 956 yen on August 14. Cumulative revenue for the first three quarters of the fiscal year ending August 2026 rose 21.4% year on year to 115.8 billion yen, but operating profit fell 4.3% to 11.3 billion yen and net profit dropped 36.6% to 3.9 billion yen. The company said profit was pressured by higher hiring costs as recruitment activity normalized and by a temporary decline in utilization rates after it added sales staff to pursue large deals. Gross profit rose 16.1%, but selling, general and administrative expenses grew faster at 27.6%, and an equity-method investment loss of 3.8 billion yen further widened the decline in net profit.
SHIFT, Inc.Operating and net profit fell despite revenue growth, pressured by higher hiring costs and an equity-method investment loss.