Kurashiru Inc (299A) Q1 2026 earnings summary

Executive summary

• Revenue grew 27.1% year-over-year and 5.2% sequentially, with net sales for the quarter at ¥3,808 million; Non-GAAP operating profit declined 8.5% YoY but rose 26.1% QoQ, mainly due to planned advertising investments in Kurashiru Rewards.

• Shopping/Sales Promotion business net sales surged 171.6% YoY, now comprising 33.5% of total revenue, driven by new client acquisitions and higher ARPU.

• Media segment revenue declined 6.4% YoY due to lower unit prices, but overall profit increased sequentially.

• Kurashiru Rewards app MAU increased by 200,000 to over 2.4 million, supporting engagement and platform growth.

• Active livestreamers and high-profit streamers in LIVEwith continued to grow.

Financial highlights

• Q1 FY2025 revenue: JPY 3.8Bn (+27.1% YoY, +5.2% QoQ); gross profit: JPY 1.8Bn (+8.8% YoY, +6.6% QoQ); Non-GAAP operating profit: JPY 0.79Bn (-8.5% YoY, +26.1% QoQ); profit: JPY 520MM (-2.1% YoY, +31.9% QoQ); Non-GAAP profit: JPY 557MM (-1.9% YoY, +29.2% QoQ).

• Gross profit margin was 47.8%, down 8.1pt YoY but up 0.6pt QoQ, reflecting a higher share of lower-margin Sales Promotion revenue.

• SG&A expenses rose due to proactive advertising (JPY 320MM) and higher outsourcing for post-IPO compliance.

• Basic EPS: ¥12.58; Diluted EPS: ¥11.64; Non-GAAP basic EPS: ¥13.47.

• Cash and deposits at quarter-end: JPY 8.9Bn, including JPY 2.9Bn in short-term commercial paper.

Outlook and guidance

• Q2 FY2025 is expected to see significant YoY increases in both revenue and profit, with sales promotion demand concentrated in the second half.

• FY2025/FY2026 guidance: net sales JPY 17.14Bn (+30.8% YoY), Non-GAAP OP JPY 3.52Bn (+25.3% YoY), Non-GAAP OP margin 20.6%, profit JPY 2.3Bn (+35.7% YoY), basic EPS ¥55.57.

• Full-year guidance remains unchanged; focus remains on accelerating Sales Promotion business and expanding Kurashiru Retail Network.