| Indicator | Current Period | YoY | YoY |
|---|---|---|---|
| Revenue | ¥124.8B | ¥94.8B | +31.6% |
| Operating Income | ¥25.4B | ¥20.7B | +22.6% |
| Ordinary Income | ¥25.6B | ¥20.4B | +26.0% |
| Net Income | ¥17.8B | ¥13.0B | +37.2% |
| ROE | 14.2% | 12.2% | - |
For FY2026 Q3 YTD (April–December), Revenue was ¥124.8B (YoY +¥30.0B +31.6%), Operating Income was ¥25.4B (YoY +¥4.7B +22.6%), Ordinary Income was ¥25.6B (YoY +¥5.2B +26.0%), and Net Income was ¥17.8B (YoY +¥4.8B +37.2%), achieving both revenue and profit growth. The Purchasing Business captured year-end shopping season demand and delivered substantial revenue growth; while continuing upfront investments such as advertising expenses, operating leverage took hold and the operating margin remained high at 20.4%. Cash and deposits stood at ¥70.7B and the Current Ratio was 425.9%, indicating extremely strong financial soundness. Progress toward full-year guidance is tracking well, at 72.8% for Revenue and 75.3% for Operating Income.
[Revenue] The top line saw a significant increase of +31.6% YoY. The Purchasing Business (Reshichalle) captured the year-end promotional demand period and led with +66.0% YoY; MAU expanded to 2.92 million. The Media Business also grew +9.6% on strong PVs as the Reshichalle ADNW business expanded, while Other Business (LIVEwith) posted a limited +15.8% growth. The main drivers of top-line growth were acceleration in the purchasing domain and increased order wins across both online and offline.
[Profit and Loss] Gross Profit was ¥58.6B with a Gross Margin of 46.9%, remaining at a high level. SG&A expenses increased to ¥33.2B, but the Non-GAAP SG&A ratio improved to 24.9% from the prior-year period, reflecting economies of scale. As a result, Operating Income was ¥25.4B (+22.6%) with an operating margin of 20.4%. Ordinary Income was ¥25.6B (+26.0%), outpacing Operating Income growth, and Net Income was ¥17.8B (+37.2%), an even higher growth rate. The divergence between Ordinary Income and Net Income is mainly due to changes in the tax burden rate; there were no disclosures of one-time factors, and the recurring earnings base remains solid.
Conclusion: Both revenue and profit increased. Expansion in Revenue driven by strong growth in the Purchasing Business and steady performance in the Media Business, coupled with an improved SG&A ratio, resulted in higher Operating Income, Ordinary Income, and Net Income compared to the prior year.
In Q3 standalone, Revenue for the Media Business was ¥21.1B (+9.6% YoY), the Purchasing Business was ¥17.5B (+66.0% YoY), and Other Business was ¥7.6B (+15.8% YoY). While segment operating profit was not disclosed, based on revenue mix and gross margin, the Purchasing Business is inferred to be the primary driver of Operating Income growth. The Media Business has a high Gross Margin and provides a stable earnings base, with the Reshichalle ADNW business leading on the back of increasing PVs. The Purchasing Business expanded rapidly with +66.0% YoY growth due to rising Reshichalle MAU and large order wins during the year-end shopping season, becoming the main driver of revenue growth this period. Other Business (LIVEwith) saw Gross Margin decline due to sluggish growth in the number of new streamers and an increased mix of high-payout-rate streamers; improving profitability is a future challenge. The core portfolio combines the Media Business’s stable earnings base with accelerating growth in the Purchasing Business, positioning the Purchasing Business to drive future performance.
Profitability: ROE 14.2% (improved from the prior-year period), Operating Margin 20.4% (slightly down from 21.8% in the prior-year period), Net Margin 14.3% (up 0.6pt from 13.7% in the prior-year period) Cash Quality: Operating Cash Flow (OCF)/Net Income 0.84x (below the 1.0x benchmark; needs improvement), FCF ¥10.5B (up ¥0.4B from ¥10.1B in the prior-year period) Investment Efficiency: Capex/Depreciation 1.00x (Capex ¥0.31B, Depreciation ¥0.31B; maintenance investment level) Financial Soundness: Equity Ratio 80.5% (unchanged from 80.5% in the prior-year period), Current Ratio 425.9% (extremely high level, ample short-term payment capacity)
Operating CF: ¥15.0B (0.84x relative to Net Income of ¥17.8B; below 1.0x, indicating somewhat insufficient cash backing) Investing CF: -¥4.5B (mainly due to acquisition of investment securities of ¥1.7B in addition to Capex of ¥0.31B) Financing CF: No disclosure of dividends or share repurchases; increase in cash and deposits limited to ¥6.3B FCF: ¥10.5B (Operating CF ¥15.0B - Capex ¥0.31B, etc.) Cash Generation Assessment: Needs monitoring. Operating CF was 0.84x of Net Income, below the benchmark, mainly due to lower cash conversion (0.58) driven by an increase in Accounts Receivable (+¥6.3B +32.2%). DSO is approximately 75 days versus the industry median of 57.87 days, exceeding the median and lengthening collection is straining working capital. Meanwhile, Cash and deposits of ¥70.7B and a Current Ratio of 425.9% indicate extremely sound liquidity, with no short-term funding risk.
Ordinary Income vs Net Income: Ordinary Income was ¥25.6B versus Net Income of ¥17.8B; there were no disclosures of one-time factors excluding tax burden, indicating recurring quality of earnings. Impact of Non-operating Income: Non-operating income ¥0.2B and Non-operating expenses ¥0.0B; the impact of non-operating gains/losses is minor (0.2% of Revenue). The gap between Operating Income and Ordinary Income is minimal, reflecting a business driven by core operations. Accruals: Operating CF at 0.84x of Net Income indicates delayed cash realization of earnings due to increased Accounts Receivable. If measures to improve receivables collection are not implemented, there is a risk that the divergence between cash flow and profit will widen.
Progress vs full-year forecast: Revenue ¥124.8B/¥171.4B = 72.8%, Operating Income ¥25.4B/¥33.7B = 75.3%, Net Income ¥17.8B/¥22.95B = 77.5%. As of the end of Q3 (75% progress is standard), Revenue is slightly below, but Operating Income and Net Income are progressing above standard. In Q4 (January–March), while Revenue in the Purchasing Business is expected to slow due to a post-year-end reaction, the Media Business should remain stable, and maintaining profitability through cost control will be key to achieving the full-year. No forecast revisions have been announced, and the likelihood of achieving the current forecast is high. The company expects high growth with Revenue growth +30.8%, Operating Income growth +26.7%, and Net Income growth +35.7%, which is consistent with progress to date. The Q3 outlook conservatively factors in the impact on the 3rd Party display advertising market; future PV growth and expansion of the Reshichalle network will support achieving the full-year forecast.
Dividend Policy: The company continues to pay no dividends on both a quarterly and year-end basis, and the Payout Ratio is not calculable. The full-year forecast also indicates a policy of ¥0 dividends. Although cash and deposits of ¥70.7B and FCF of ¥10.5B provide ample capacity to pay dividends, management prioritizes internal reserves, increasing retained earnings to ¥85.6B (+26.2% YoY). From January 2026, the company introduced a new shareholder benefit program, offering a one-year Kurashiru Premium membership (annual fee ¥4,980) to shareholders holding 100 shares or more. The benefit yield is approximately 5.2%, initiating de facto returns via benefits; the timing of resuming cash dividends is undecided. There is no disclosure of share repurchases, so the Total Return Ratio is not calculable.
[Short-term] Expansion of Reshichalle MAU and growth in retail network partners (LINE WALK to join starting February 2026), increased order wins for the second wave of Reshichalle projects for dining-out, developments in the 3rd Party display advertising market, and whether full-year guidance will be achieved in Q4 (progress is favorable at this point).
[Long-term] Full-scale expansion into the purchasing domain driving market share gains (entry into the ¥15 trillion promotional market), enhanced user experience in online purchasing (such as implementing price comparison features) and confirmation of a bottom in financial projects, increasing the proportion of highly profitable virtual streamers in the LIVEwith business, strengthening the business portfolio through M&A/acquisition of a VTuber business (consolidated from January 2026), and potential review of dividend policy.
[Position within Industry] (Reference information; in-house research) Profitability: ROE 14.2% (industry median 6.5%, 2025 Q3), far above median and among the top in the industry. Operating Margin 20.4% (industry median 7.1%) and Net Margin 14.3% (industry median 5.3%) are both roughly 3x the industry median, an extremely high level. Soundness: Equity Ratio 80.5% (industry median 57.1%) and Current Ratio 425.9% (industry median 2.30x) are both far above the industry median, indicating exceptionally strong financial safety within the industry. Efficiency: Total Asset Turnover 0.80 (industry median 0.81), in line with the median. DSO is approximately 75 days, above the industry median of 57.87 days, indicating room for improvement in collection efficiency. Growth: Revenue growth rate +31.6% (industry median +9.1%), markedly high within the industry. EPS growth rate is also +37.2%, well above the industry median of +10%. Cash Generation: Cash Conversion Ratio (OCF/EBITDA) is 0.58, well below the industry median of 4.47. Working capital strain from increased Accounts Receivable is the main factor, and cash generation efficiency is relatively low within the industry. *Industry: Healthcare (N=56 companies, 2025 Q3), comparison target: quarterly data over the past three years, source: in-house aggregation
Key points to watch:
This report is an automatically generated earnings analysis prepared by AI that integrates XBRL earnings report data and PDF earnings presentation materials. It does not constitute a recommendation to invest in any specific security. The industry benchmarks are reference information aggregated by our company based on publicly available financial data. Investment decisions are your own responsibility; consult a professional as needed before making any decisions.
AI analysis of the PDF earnings presentation
In FY2026 Q3, Kurashiru Co., Ltd. recorded Revenue up 27.1% YoY to ¥46.3B and Non-GAAP Operating Income up 20.6% to ¥10.1B, showing solid progress. In the Purchasing Business, order intake increased steadily during the year-end demand period, and Reshichalle-related MAU rose by 0.25 million QoQ to 2.92 million. The Media Business also achieved YoY revenue growth of +9.6% on strong PVs. For the full year, the company forecasts Revenue of ¥171.4B and Non-GAAP Operating Income of ¥35.2B, with progress toward full-year targets at 72.8% for Revenue and 75.3% for profit, both tracking well. The company newly introduced a shareholder benefit program, offering a one-year Kurashiru Premium membership (benefit yield approximately 5.2%).
By Q3 cumulative, Non-GAAP Operating Income reached 75.3% of the full-year forecast, indicating steady progress. Reshichalle-related MAU expanded to 2.92 million, and during the year-end promotional demand period, the Purchasing Business posted a substantial revenue increase of +29.6% vs Q2. Partners in the Kurashiru Retail Network were expanded, with LINE WALK joining following Yahoo Japan and SmartNews. In the dining-out segment under Reshichalle, the Pizza Hut case achieved an approximately 80% new customer rate and an approximately 120% increase in average spend. Introduction of the shareholder benefit program provides an approximate 5.2% benefit yield, enhancing shareholder return measures.
The Media Business is expected to continue benefiting from AI-driven content generation that lifts PVs. The Purchasing Business will accelerate expansion through an increasing number of retail accounts and external partner expansion in the Kurashiru Retail Network. Other Business aims to diversify earnings by nurturing highly profitable streamers and launching support services for live commerce. For the full year, the company forecasts Revenue of ¥171.4B (YoY +30.8%) and Non-GAAP Operating Income of ¥35.2B (YoY +25.3%).
Management indicated an intention to further accelerate growth in the purchasing domain. For online shopping, an e-commerce price comparison function will be implemented to enhance the user experience. For offline shopping, the company will increase retailer accounts and promote linkage with third-party services, aiming for a flywheel effect (more users → more partner brands/retailers → more attractive projects → higher user engagement). In Media, the company will continue unit price management while conservatively incorporating the market impact on 3rd Party display advertising.
By promoting Reshichalle’s “Tabechalle” projects, the company will link cooking recipes with purchase intent to expand project acquisition for processed and fresh foods. In the restaurant industry rollout of Reshichalle (e.g., Pizza Hut), the company is achieving new customer acquisition and increases in average spend. Expansion of partner companies (LINE WALK joining) in the Kurashiru Retail Network will increase users and strengthen procurement power for promotional projects. Through developing retail partners (drugstores, supermarkets), the company aims to further increase the number of client companies. The business transfer of a VTuber operation will strengthen the virtual creator domain and promote revenue diversification through merchandise sales and other channels.
The Media Business conservatively incorporates the impact of the 3rd Party display advertising market, presenting a risk of unit price fluctuations. In Other Business, growth may be limited due to sluggish acquisition of new streamers. In the online purchasing business, a slowdown in growth in financial projects could have a certain negative impact (however, a bottom has been confirmed). The risk of receivables collection delays (AI analysis of XBRL indicates DSO of approximately 75 days) is a potential factor straining working capital. If the low cash conversion efficiency (cash conversion ratio 0.58) persists, there could be friction in the pace of growth investments.
The Q&A section made clear that the increase in PVs in the Media Business is expected to continue thanks to AI-driven lift, multiple additional partner companies are anticipated to onboard to the Kurashiru Retail Network next fiscal year, the slowdown in growth of financial projects in the online purchasing business has bottomed out due to internal initiatives, and the decline in Gross Margin in Other Business is due to a sales mix shift toward high-payout-rate streamers, with plans to improve profitability by increasing the proportion of virtual streamers going forward.
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