| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥149.0B | ¥142.9B | +4.3% |
| Operating Income / Operating Profit | ¥23.4B | ¥18.2B | +28.5% |
| Profit Before Tax | ¥24.4B | ¥18.0B | +35.5% |
| Net Income | ¥15.2B | ¥37.2B | -59.0% |
| ROE | 5.5% | 14.2% | - |
For the cumulative results to Q2 of the fiscal year ending September 2026, Revenue was ¥149.0B (YoY +¥6.1B, +4.3%), Operating Income was ¥23.4B (YoY +¥5.2B, +28.5%), Ordinary Income was ¥23.2B (YoY +¥6.4B, +38.0%), and Net Income attributable to owners of the parent was ¥15.4B (YoY -¥21.8B, -58.5%). The core LIFULL HOME'S recorded Revenue of ¥135.8B (+4.2%), accounting for 91.2% of consolidated Revenue; the segment reported Operating Income of ¥25.9B (+19.1%) and a margin of 19.1%, reflecting improved profitability. The large decline in Net Income was driven by the absence of one-off items in the prior year (gain on loss of control of overseas businesses related to restructuring, etc.) and the drop-off of non‑continuing business gains (¥29.9B in the prior year); continuing operations profit improved to ¥15.3B (from ¥7.3B, +109.5%). Operating margin rose to 15.7% from 12.8% a year earlier (+2.9pt), and SG&A ratio improved to 78.8% (from 81.0%, -2.2pt). Progress versus full-year guidance is 50.2% of Revenue, 78.1% of Operating Income, and 81.2% of Net Income attributable to owners of the parent, suggesting an upside bias on profitability.
【Revenue】 Revenue of ¥149.0B (+4.3%) was driven by the core LIFULL HOME'S segment. That segment recorded Revenue of ¥135.8B (+4.2%), representing 91.2% of consolidated Revenue, supported by sticky customer base and ARPU improvement in rental and real-estate sales portals. Other businesses were ¥13.2B (+4.4%)—a slight increase—but remain a drag with an Operating Loss of ¥2.6B (narrowed from ¥4.5B loss a year earlier). Gross margin remained high at 94.5% (vs. 95.0% prior), securing Gross Profit of ¥140.8B against Cost of Sales of ¥8.2B. No region-specific or qualitative drivers were disclosed, but enhancements to HOME'S billing functions and improved advertising efficiency are presumed primary drivers.
【Profitability】 Operating Income of ¥23.4B (+28.5%) was mainly due to improvement in SG&A efficiency. SG&A was controlled to ¥117.4B (+1.3%), well below Revenue growth (+4.3%), resulting in an SG&A ratio of 78.8% (down 2.2pt from 81.0%). LIFULL HOME'S operating margin expanded to 19.1% (from 18.8%), with segment Operating Income of ¥25.9B (+19.1%). The Other Businesses' loss of ¥2.6B narrowed 41.6% from ¥4.5B, but sustained profitability remains a challenge. Non-operating items comprised Financial Income ¥0.3B and Financial Expenses ¥0.6B, net burden ¥0.3B; equity-method losses were -¥0.1B (improved from -¥0.4B). Ordinary Income was ¥23.2B (+38.0%); Profit Before Tax of ¥24.4B includes a Profit Before Tax from non-continuing operations of -¥0.1B. After Corporate Taxes and Other of ¥9.1B (effective tax rate 37.2%), continuing operations profit was ¥15.3B and non-continuing loss was ¥0.1B, yielding Net Income attributable to owners of the parent of ¥15.4B. The prior year included non-continuing business gains of ¥29.9B (from overseas restructuring and loss of control gains), so the current period decline in Net Income reflects the absence of those one-offs; on a continuing operations basis, profit rose substantially (+109.5%). Conclusion: revenue and profit growth on a continuing-operations basis.
LIFULL HOME'S: Revenue ¥135.8B (+4.2%), Operating Income ¥25.9B (+19.1%), margin 19.1% (up 0.3pt from 18.8%). The segment accounts for 91.2% of consolidated Revenue and the majority of Operating Income; profitability is trending upward, driven by stable customer base and higher advertising pricing/efficiency. Other Businesses: Revenue ¥13.2B (+4.4%), Operating Loss ¥2.6B (narrowed 41.6% from a ¥4.5B loss), margin -19.9%. Loss narrowing is positive, but the segment still dilutes consolidated profitability and needs visible path to profitability.
【Profitability】Operating margin 15.7% (up 2.9pt from 12.8% prior year), Net margin 10.2% (on a continuing-operations basis 10.3%, a significant improvement from 5.1% prior), and Gross margin maintained at 94.5%. ROE 5.5% (down from 14.2%) primarily reflects the loss of one-off net income in the prior year; underlying profitability on a continuing-operations basis improved. 【Cash Quality】Operating Cash Flow / Net Income 1.21x (improved from 0.37x), Operating Cash Flow / EBITDA 0.61x (from 0.57x), indicating somewhat low cash conversion efficiency. Accounts receivable days estimated at 109 days (from 106), trending longer. 【Investment Efficiency】Total asset turnover 0.35x, ROA 3.6% (down from 9.1%), estimated ROIC 3.9%—asset efficiency remains low. The large increase in tangible fixed assets (+61.8%) raises questions about realizing returns. 【Financial Soundness】Equity Ratio 64.8% (from 63.6%), Interest-bearing debt ¥98.4B (Debt/Equity 0.36x), Net Debt is ¥10.6B (Cash ¥87.8B - Interest-bearing debt ¥98.4B). Interest coverage (EBIT / Financial Expenses) is about 41x, indicating strong coverage.
Operating Cash Flow was ¥18.5B (up 35.3% from ¥13.7B), exceeding Net Income ¥15.2B, so there is no evidence of excessive accrual accumulation. Operating CF subtotal ¥17.6B was after working capital changes of ¥0.9B (accounts receivable increase ¥2.7B and inventory increase ¥1.0B partially offset by accounts payable increase ¥0.6B) and corporate tax payments of ¥1.2B. Investing CF was -¥37.9B, including lending disbursements ¥15.2B and recoveries ¥11.7B (net outflow ¥3.5B), and other investments including ¥0.1B; investment outflows persist. Financing CF was -¥0.1B with long-term borrowings of ¥18.0B, repayments ¥3.6B, and dividend payments ¥13.3B (year-end dividend). Free Cash Flow was -¥19.4B, insufficient to cover dividends, reflecting large investment activity. Cash and cash equivalents declined to ¥87.8B (from ¥107.0B, -¥19.2B); after FX translation impact +¥0.7B the period reflects net cash outflows. Lease payments ¥3.1B and interest paid ¥0.5B are modest fixed cash burdens.
On a continuing-operations basis, Ordinary Income was ¥23.2B and non-continuing loss ¥0.1B, leading to Profit Before Tax ¥24.4B; after Corporate Taxes and Other of ¥9.1B the Net Income ¥15.2B is primarily from recurring operations. Non-operating income totaled ¥0.8B (Financial Income ¥0.3B and Other Income ¥0.5B); non-operating expenses totaled ¥1.2B (Financial Expenses ¥0.6B, equity-method losses -¥0.1B, Other Expenses ¥0.5B), net non-operating burden ~¥0.4B—immaterial. The prior year included non-continuing gains ¥29.9B (gain on loss of control related to overseas restructuring), which materially boosted last year’s Net Income of ¥37.2B. The current period Net Income of ¥15.2B is lower due to loss of those one-offs, but continuing operations profit improved to ¥15.3B (from ¥7.3B, +109.5%), indicating strengthened underlying earnings. Accruals are not excessive: Operating CF ¥18.5B vs. Operating CF subtotal ¥17.6B, with modest working capital changes. Comprehensive Income ¥25.2B includes Net Income ¥15.2B plus Other Comprehensive Income ¥9.9B, mainly remeasurement items not reclassified to profit or loss ¥9.2B (valuation of available-for-sale securities, etc.) and foreign currency translation adjustments ¥7.0B.
Full-year guidance: Revenue ¥297.0B, Operating Income ¥30.0B (YoY -21.4%), Net Income attributable to owners of the parent ¥19.0B (YoY -64.3%), EPS ¥14.10, Dividend ¥5.21 (dividend policy based on 30% payout ratio). Cumulative Q2 progress vs. guidance: Revenue 50.2%, Operating Income 78.1%, Net Income attributable to owners of the parent 81.2%, indicating an upside bias on profitability. However, compared with prior full-year Operating Income of ¥38.2B (Q2 cumulative ¥18.2B, progress 47.6%), current period shows first-half bias and the second half may see increased investment spending and seasonality effects. No forecast revisions were announced; the company maintains a cautious stance. The dividend forecast ¥5.21 is calculated on a 30% payout basis using shares outstanding at year-end; based on planned Net Income ¥19.0B, total dividends are approximately ¥6.7B (assuming shares outstanding after treasury stock of ~128M), implying an effective payout ratio of ~35%, which is within a sustainable range.
No interim dividend was paid for Q2 (company policy). Year-end dividend forecast is ¥5.21, to be calculated on the basis of a 30% payout ratio applied to shares outstanding at fiscal year-end. Against full-year Net Income plan ¥19.0B, total dividends are expected to be ~¥6.7B (assuming 128M shares after treasury stock), implying a payout ratio of ~35%. The prior year included a one-off gain from overseas restructuring and a ¥1.00 commemorative dividend for the 30th anniversary; the current year is normalized. No share buybacks have been executed; Total Return Ratio equals the dividend payout ratio. Dividend funding is considered feasible given improved continuing-operations profit and stable Operating CF (¥18.5B), but H1 Free Cash Flow was -¥19.4B and dividend payments of ¥13.3B were cash outflows. Sustaining the dividend assumes full-year improvement in Operating CF and restraint in Investing CF. The company announced a new shareholder benefits program on 12 February 2026, expanding return measures beyond dividends.
Business concentration risk: LIFULL HOME'S accounts for 91.2% of Revenue, creating very high single-business dependence. External shocks such as real-estate market demand fluctuations, intensified competition, or regulatory changes could directly affect consolidated performance. Other businesses are ¥13.2B in size with an Operating Loss of ¥2.6B, providing limited diversification.
Asset-efficiency risk: ROIC 3.9% and ROA 3.6% indicate low capital deployment efficiency. Tangible fixed assets expanded 61.8% year-on-year to ¥51.5B, and returns on total assets ¥421.0B are insufficient. Delays in investment recovery could constrain shareholder value creation and risk falling below the cost of capital.
Cash-conversion risk: Operating CF / EBITDA 0.61x indicates low cash-conversion efficiency, and accounts receivable days of 109 are trending longer. Inefficient working capital management reduces cash flexibility and could constrain growth investments and dividend capacity. H1 Free Cash Flow -¥19.4B reflects investment-frontloaded posture.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 15.7% | 14.0% (3.8%–18.5%) | +1.8pt |
| Net Margin | 10.2% | 9.2% (1.1%–14.0%) | +1.0pt |
Profitability exceeds industry medians; both operating and net margins are favorable.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 4.3% | 21.0% (15.5%–26.8%) | -16.7pt |
Revenue growth materially lags industry median; growth is low within the sector.
※Source: Internal compilation of public financial statements
Improvement in continuing-operations profitability is noteworthy. Continuing-operations profit ¥15.3B (from ¥7.3B, +109.5%) and Operating Margin 15.7% (up 2.9pt from 12.8%) reflect SG&A efficiency gains and expanded profitability of LIFULL HOME'S. Progress against full-year guidance shows upside bias (Operating Income 78.1%, Net Income 81.2%), and despite second-half investment and seasonality, the underlying earnings trend appears solid.
Cash generation and asset-efficiency improvements will be the next valuation drivers. Operating CF / EBITDA 0.61x, accounts receivable days 109, and ROIC 3.9% are low and constrain funding circulation for growth and shareholder value creation. Visualizing returns on the +61.8% increase in tangible fixed assets and optimizing working capital are essential to securing dividend sustainability and investment capacity. The H1 Free Cash Flow -¥19.4B reflects investment-first posture; recovery of balance over the full year depends on improved Operating CF and normalization of Investing CF in H2.
This report was automatically generated by AI analyzing XBRL financial statement data. It does not constitute an investment recommendation for any specific security. Industry benchmarks are reference information compiled internally from public financial statements. Investment decisions are your responsibility; consult a professional advisor as needed.