| Indicator | This Period | Prior Year Same Period | YoY |
|---|---|---|---|
| Revenue | ¥941.3B | ¥784.4B | +20.0% |
| Operating Income | ¥272.4B | ¥292.9B | -7.0% |
| Profit Before Tax | ¥273.5B | ¥287.1B | -4.8% |
| Net Income | ¥188.5B | ¥200.0B | -5.7% |
| ROE | 28.9% | 32.2% | - |
The FY2026 full-year results recorded Revenue of ¥941.3B (YoY +¥156.9B +20.0%), Operating Income of ¥272.4B (YoY -¥20.5B -7.0%), Ordinary Income of ¥291.3B (YoY +¥18.2B +6.7%), and Net Income attributable to owners of the parent of ¥188.0B (YoY -¥12.2B -6.1%), resulting in a revenue-up/profit-down outcome. Top-line growth was driven by the Tabelog Business (+20.2%) and the KyujinBox Business (+51.2%), delivering high growth, but the KyujinBox business swung to a loss due to acquisition investment front-loading (Operating Loss ¥14.9B) and company-wide expense increases (¥87.6B, up from ¥67.1B +30.6%), causing a decline at the operating level. Meanwhile, a net increase in non-operating items—financial income ¥4.6B and financial expenses ¥3.4B—contributed positively, producing an increase at the Ordinary Income level. The operating margin remained high at 28.9% but declined by approximately 8.5pt from 37.4% a year ago, indicating that the cost front-loading for growth investments pressured margins.
[Revenue] Revenue reached ¥941.3B (+20.0%), achieving high growth. The Tabelog Business reported ¥402.4B (+20.2%), accounting for 42.7% of revenue, supported by recovery in reservation-linked charges and advertising demand. The KyujinBox Business grew strongly to ¥202.1B (+51.2%), expanding to a 21.5% revenue share, with monetization accelerating via CPC and application-based charges amid robust hiring demand. The kakaku.com Business was essentially flat at ¥236.1B (-0.1%), representing 25.1% of revenue, with maturity in advertising inventory in major categories and stable unit prices. The Incubation Business reached ¥100.7B (+26.6%), 10.7% of revenue, aided by expansion in real-estate and travel sites and consolidated subsidiaries. Operating expenses increased faster than revenue to ¥669.6B (operating expense ratio 71.1%, +9.1pt from 62.0%), chiefly due to aggressive advertising and personnel investment in KyujinBox and higher company-wide costs.
[Profitability] Operating Income was ¥272.4B (-7.0%) and the operating margin fell materially to 28.9% (down -8.5pt from 37.4%). By segment, kakaku.com posted Operating Income of ¥125.5B (+6.9%) with a margin of 53.1% (up +3.1pt from 50.0%), maintaining and improving profitability. Tabelog reported Operating Income of ¥222.0B (+22.8%) with a margin of 55.2% (up +1.2pt from 54.0%), achieving revenue and profit growth with improved profitability. KyujinBox turned to an Operating Loss of ¥14.9B (from an Operating Profit of ¥42.6B prior year, Δ -¥57.5B, YoY -134.9%), with margin deteriorating to -7.4% (down -39.3pt from 31.9%). Acquisition-cost front-loading driven by growth investment caused margins to collapse despite top-line +51.2%. Incubation achieved Operating Income of ¥27.4B (+42.3%) with a margin of 27.2% (up +3.2pt from 24.0%). Company-level adjustments (corporate costs) were -¥87.6B (prior year -¥67.1B, +¥20.5B, +30.6%), growing faster than revenue as corporate functions expanded and management structures were strengthened. Ordinary Income was ¥291.3B (+6.7%), supported by a large increase in financial income to ¥4.6B (prior year ¥0.2B) and a decline in financial expenses to ¥3.4B (prior year ¥5.8B), partially offsetting the operating-level profit decline. Extraordinary items included impairment losses of ¥0.7B (prior year ¥5.9B), limited in size, so one-off impacts were minor. After corporate income tax expense of ¥84.9B (effective tax rate 31.1%), Net Income attributable to owners of the parent was ¥188.0B (-6.1%), and net margin contracted to 20.0% (down -5.5pt from 25.5%). In conclusion, results show revenue expansion but profit contraction: while top-line grew strongly, KyujinBox losses and higher corporate costs reduced operating profits, and net increases in non-operating income produced a slight rise at the Ordinary Income stage.
The kakaku.com Business was stable with Revenue ¥236.1B (-0.1%) and Operating Income ¥125.5B (+6.9%) with a margin of 53.1% (up +3.1pt from 50.0%), as maintained ad unit prices in key categories and efficiency improvements supported margin expansion. The Tabelog Business delivered Revenue ¥402.4B (+20.2%) and Operating Income ¥222.0B (+22.8%) with a margin of 55.2% (up +1.2pt from 54.0%), benefiting from higher paid listings, growth in reservation-linked charges, and optimization of referral incentives. The KyujinBox Business, despite high growth with Revenue ¥202.1B (+51.2%), turned to an Operating Loss of ¥14.9B (from prior year Operating Income ¥42.6B, Δ -¥57.5B) with margin -7.4% (from 31.9% prior year), due to upfront advertising and systems investments to improve matching accuracy and referral efficiency, which compressed margins. The Incubation Business recorded Revenue ¥100.7B (+26.6%) and Operating Income ¥27.4B (+42.3%) with margin 27.2% (up +3.2pt from 24.0%), driven by scale expansion in real-estate and travel site clusters and consolidated subsidiaries turning profitable/increasing profits.
[Profitability] The operating margin was 28.9% (down -8.5pt from 37.4%) but remains high for a domestic internet company. Net margin was 20.0% (down -5.5pt from 25.5%), mainly due to a decline in core operating profitability rather than one-off items. ROE stood at 29.7%, supported by Net Margin 20.0% × Total Asset Turnover 1.02× × Financial Leverage 1.42×. The YoY decline from ROE 35.4% was mainly driven by the -5.5pt contraction in Net Margin. Ordinary Income margin was 30.9% (down -3.9pt from 34.8%), showing a smaller decline than at the operating level due to net increases in non-operating income. [Cash Quality] Operating Cash Flow / Net Income ratio was 1.35x (Operating CF ¥253.5B / Net Income ¥188.0B), indicating strong cash conversion. The accrual ratio was -7.1% (Net Income - Operating CF), negative, indicating cash generation in excess of accounting profit. Working capital movements were minor, with Accounts Receivable increase ¥2.5B and Accounts Payable increase ¥2.0B roughly balancing; cash generation relied on operating profit. [Investment Efficiency] Total Asset Turnover was 1.02× (Revenue ¥941.3B / average total assets ~¥925B), nearly flat, as revenue growth balanced a slight decline in total assets. Goodwill and intangible assets increased materially to ¥114.0B (12.3% of total assets, up from ¥77.2B, +¥36.8B +47.7%), reflecting M&A (subsidiary acquisitions ~¥37.2B). ROA was 20.4% (Net Income ¥188.0B / Total Assets ¥924.8B), down -1.0pt from 21.4% but still high. [Financial Soundness] Equity Ratio improved to 70.3% (up +3.9pt from 66.4%), and D/E ratio was very low at 0.42× (Debt ¥273.1B / Equity ¥651.7B), indicating extremely high financial safety. Current ratio was 278.0% (Current Assets ¥667.6B / Current Liabilities ¥240.2B), ample liquidity and low short-term funding risk. Interest-bearing debt was minimal for both short- and long-term borrowings, effectively debt-free operations. Lease liabilities were limited (Current ¥10.3B / Non-current ¥21.5B). Cash and cash equivalents were ¥464.7B, ample and representing 50.2% of total assets, indicating very high liquidity.
Operating CF was ¥253.5B (down -7.5% from ¥274.0B prior year), showing strong cash conversion at 1.35x relative to Net Income ¥188.0B. Operating CF subtotal (before working capital changes) was ¥350.4B (down -1.8% from ¥356.8B), indicating maintained core cash generation power. Working capital movements were small: decrease in Accounts Receivable (cash inflow) ¥2.5B, increase in Accounts Payable (inflow) ¥2.0B, increase in other financial liabilities (inflow) ¥49.8B, decrease in other current assets (inflow) ¥55.9B, and decrease in other current liabilities (outflow) ¥76.2B, contributing net to Operating CF. Corporate taxes paid were ¥97.6B, interest paid ¥0.5B, and lease payments ¥14.6B; large financial cash outflows were limited. Investing CF was -¥114.2B (worsened by -¥84.8B from prior year -¥29.4B), driven by net increase in time deposits (placements ¥100.0B, withdrawals ¥50.2B, net -¥49.8B), capital expenditure ¥7.5B, intangible asset acquisitions ¥19.4B, investment securities acquisitions ¥1.5B, and subsidiary acquisitions ¥37.2B (acquisitions accompanying changes in consolidation scope). M&A-related investments temporarily depressed Investing CF, but Free Cash Flow was still positive at ¥139.4B (Operating CF ¥253.5B + Investing CF -¥114.2B), and coverage of dividend payments ¥158.2B was 0.88x, meaning most dividend payments were covered by Operating CF though net cash outflow occurred when including M&A. Financing CF was -¥183.7B (deteriorated -¥70.7B from -¥113.0B prior year), primarily due to dividend payments ¥158.2B (up from ¥94.9B +¥63.3B, including an increase in year-end dividend), dividends to non-controlling interests ¥1.4B, acquisition of non-controlling interests in subsidiaries ¥1.1B, and lease liability repayments ¥14.6B. Cash and cash equivalents fell from ¥508.6B at the beginning of the period to ¥464.7B at the end, a decrease of -¥43.9B, but ample liquidity was maintained. EBITDA-based cash generation (Operating CF plus depreciation and amortization of ¥43.5B) is estimated at approximately ¥297.0B, and Free Cash Flow to EBITDA ratio is about 46.9%, indicating that post-M&A the company remains within a range where internal funds can support both growth investments and shareholder returns.
Earnings quality is generally good. Non-operating income is small—Financial Income ¥4.6B (0.5% of Revenue)—and earnings are primarily driven by operating activities. The increase in Financial Income (from ¥0.2B prior year to +¥4.4B) reflects higher cash and short-term invested assets and a rising interest-rate environment leading to increased interest and dividend receipts; this is not easily classified as temporary and reflects improved yields on held assets. Financial Expenses decreased to ¥3.4B (from ¥5.8B prior year, -¥2.4B), aided by lower lease liabilities and continued low interest rates, and the net improvement in non-operating items supported Ordinary Income. Extraordinary items were minor—impairment losses ¥0.7B (including impairments within operating expenses total ¥0.7B)—significantly reduced from prior year ¥5.9B, so one-off impacts were limited. Comprehensive income was ¥188.8B (almost identical to Net Income ¥188.5B), with Other Comprehensive Income of OCI ¥0.3B (foreign currency translation ¥0.3B, valuation loss on financial assets -¥0.1B) small, so divergence between Net Income and Comprehensive Income was minimal. Equity-method investment gains/losses were -¥0.1B, immaterial to overall results. The Operating CF / Net Income ratio of 1.35x indicates cash generation exceeding accounting profit, and working capital movements were minor—no excessive inventory buildup or receivables expansion—supporting high accrual-based earnings quality. Conversely, KyujinBox’s swing to loss was due to upfront advertising and systems investment; by nature of the investment, this will pressure short-term profitability but is intended to build a mid-to-long-term growth foundation and can be viewed as a temporary margin decline. The company-wide cost increase (+30.6%) reflects corporate function expansion, headcount increases, and strengthened management structures, and should be noted as structural rather than transient.
The company plan for FY2027 (year ending March 2027) targets Revenue ¥1,145.0B (YoY +¥203.7B +21.6%), Operating Income ¥308.0B (YoY +¥35.6B +13.1%), and Net Income attributable to owners of the parent ¥207.0B (YoY +¥19.0B +10.1%), projecting continued high growth. Full-year progress rates are 82.2% for Revenue (¥941.3B/¥1,145.0B) and 88.5% for Operating Income (¥272.4B/¥308.0B), indicating somewhat front-loaded progress. Operating margin on the plan is approximately 26.9% (¥308.0B/¥1,145.0B), implying about -2.0pt from this period’s 28.9%, reflecting an outlook that assumes continued growth investment. Convergence of KyujinBox’s loss and margin improvement are key to achieving next year’s plan. Introduction of adjusted EBITDA (Operating Income + D&A + stock-based compensation ± one-off items) is expected to enhance visibility of cash generation. Dividend guidance is annual ¥27 (interim ¥13.5 / year-end ¥13.5 assumed); reduction from this period’s ¥50 (including a special year-end dividend of ¥30) suggests elimination of the special dividend, with ordinary dividend levels maintained near prior-year levels. EPS forecast is ¥104.63 and payout ratio is about 25.8%, indicating a preference to retain earnings to fund growth investments. The gap between the company’s full-year forecast and this period’s results depends on the extent to which KyujinBox’s loss narrows and margins improve; achievement depends on improvements in ad unit prices, referral efficiency, and LTV.
This period’s total annual dividend was ¥50 (interim ¥25 / year-end ¥25), with a payout ratio of 52.7% (Total dividends ¥98.9B / Net Income ¥188.0B), maintaining a policy of allocating about half of earnings to dividends. The year-end dividend included a special dividend of ¥30, implying ordinary dividend of about ¥25. Total dividends paid on a cash basis were ¥158.2B, with Free Cash Flow coverage of 0.88x relative to ¥139.4B Free Cash Flow, slightly below full coverage; excluding one-off M&A investments, Operating CF largely covered dividends. Dividend yield is approximately 1.3% (based on end-period share price estimate), and dividend sustainability is high. There were zero share buybacks in the period; shareholder returns are dividend-centric. Next-year dividend guidance is annual ¥27 (interim ¥13.5 / year-end ¥13.5 assumed), and elimination of the special dividend indicates maintenance of ordinary dividend levels (around ¥25). Given Net Income growth guidance (+10.1%) and payout ratio of ~25.8% on the guidance, dividends are expected to be stably continued in line with earnings growth. Total Return Ratio consists only of dividends and excludes share repurchases. With cash and deposits ¥464.7B and a strong balance sheet, concerns about dividend sustainability are limited, enabling coexistence of growth investment and shareholder returns.
Risk of continued KyujinBox losses and delayed margin recovery: KyujinBox swung to an Operating Loss of ¥14.9B this period, with margin deteriorating to -7.4% (from +31.9% prior year, -39.3pt). If optimization of ad unit prices, matching accuracy, and referral efficiency does not progress as planned and the acquisition-cost front-loading period is prolonged, recovery of company operating margins may be delayed and achievement of next-year’s plan (Operating Margin 26.9%) could become difficult. Even if top-line growth of +51.2% continues, a slower-than-expected reduction in the loss could affect capital available for shareholder returns and growth investment.
Risk of structural increases in company-wide costs and widening gap with revenue growth: Company-level adjustments (corporate costs) were -¥87.6B (from -¥67.1B prior year, +30.6%), growing well ahead of revenue growth +20.0%. While driven by expansion of corporate functions, headcount increases, and stricter management frameworks, if similarly high growth in these costs continues, revenue slowdowns could lead to downward rigidity in operating margins and delayed profitability recovery. Continuous monitoring of the balance between growth investment and fixed-cost increases is required.
Impairment risk associated with increased goodwill and intangible assets: Goodwill and intangible assets rose materially to ¥114.0B (12.3% of total assets, up from ¥77.2B), reflecting subsidiary acquisitions via M&A. If a large portion of acquisition consideration is recorded as goodwill/intangibles and post-integration performance falls short or market conditions deteriorate, there is a risk of future impairment losses. This period’s impairment was small at ¥0.7B, but future impairment tests could produce downside to earnings. Although goodwill amortization impact is limited, impairment—given it represents 12.3% of total assets—could have a meaningful effect, so monitoring integration progress and performance is important.
Profitability & Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| ROE | 29.7% | 10.1% (2.2%–17.8%) | +19.6pt |
| Operating Margin | 28.9% | 8.1% (3.6%–16.0%) | +20.8pt |
| Net Margin | 20.0% | 5.8% (1.2%–11.6%) | +14.2pt |
KAKAKU.COM exhibits extremely high profitability within the IT & Communications sector, with ROE, Operating Margin, and Net Margin all substantially above the sector medians.
Growth & Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 20.0% | 10.1% (1.7%–20.2%) | +9.9pt |
Revenue growth also exceeds the sector median by approximately 10pt, positioning the company as a high-growth firm.
※ Source: Company aggregation
Revenue-up/profit-down driven by growth investment and temporary factors: Revenue +20.0% versus Operating Income -7.0% is attributable mainly to acquisition-investment front-loading in KyujinBox (Operating Loss ¥14.9B) and company-wide cost increases (+30.6%), while core franchises Tabelog and kakaku.com maintained or improved high profitability. High earnings quality is indicated by Operating CF / Net Income 1.35x and accrual ratio -7.1%, so the short-term margin compression can be viewed as strategic investment to build growth foundations. If unit-price optimization and referral-efficiency improvements in KyujinBox proceed, margin recovery in subsequent periods is likely.
Strong balance sheet and ample cash support both growth investment and shareholder returns: With Equity Ratio 70.3%, D/E 0.42×, and cash and deposits ¥464.7B, the balance sheet is very healthy. The company generated Free Cash Flow ¥139.4B while paying dividends ¥158.2B. Even after accelerating investment including M&A (subsidiary acquisitions ¥37.2B), liquidity remains sufficient to pursue growth investments and dividends (next-year dividend guidance ¥27). Introduction of adjusted EBITDA will improve visibility into cash generation and enable better monitoring of investment returns.
Keys for next year are KyujinBox loss convergence and restraint of company-wide cost growth: The FY2027 plan assumes Revenue +21.6% and Operating Income +13.1% with an operating margin of ~26.9% (down -2.0pt from 28.9%), premised on continued investment. Achievement depends on narrowing KyujinBox’s loss and improving acquisition unit economics and LTV. If company-wide costs continue to grow >30%, downward rigidity in margins could increase, so verifying cost-effectiveness and strengthening cost control are critical. Monitoring integration progress for goodwill and intangibles (¥114.0B, 12.3% of assets) is also important given impairment risk.
This report is an earnings analysis document automatically generated by AI based on XBRL financial statement data. It is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the firm from public financial statements. Investment decisions are your responsibility; please consult a professional advisor as appropriate.