Kurashiru Inc (299A) Q3 2025 earnings summary

Executive summary

• Revenue for the nine months ended December 31, 2024, rose 32.6% year-over-year to JPY 9,483MM, with Non-GAAP Operating Profit up 18.7% to JPY 2,188MM.

• Achieved net sales of ¥9,483 million, ordinary profit of ¥2,036 million, and profit of ¥1,297 million, driven by strong growth in the shopping business and increased user engagement.

• Shopping (Promotion) business was the main growth driver, with 3Q revenue up 349.5% YoY and Kurashiru Rewards users exceeding 2.0MM.

• Shopping business net sales ratio rose to 22.7% of total, with higher ARPU and a shift toward performance-based and recurring income streams.

• Media (Engagement) business recovered in 3Q after a temporary decline in 2Q.

Financial highlights

• Net sales for the nine months reached JPY 9,483MM (+32.6% YoY); Gross Profit was JPY 4,785MM (+21.2% YoY).

• Non-GAAP Operating Profit for the period was JPY 2,188MM (+18.7% YoY); Net Income was JPY 1,296MM (+18.8% YoY); Non-GAAP profit was JPY 1,406MM.

• Gross profit margin declined to 50.5% from 55.2% YoY, reflecting a higher sales mix from lower-margin Shopping.

• Operating profit margin for the period was 21.8%, down from 24.1% YoY.

• Basic earnings per share: ¥31.39; non-GAAP basic EPS: ¥34.04; diluted non-GAAP EPS: ¥31.53.

Outlook and guidance

• The company is on track to meet or exceed its FY2024 full-year plan, with strong momentum in Shopping and steady recovery in Media.

• Full-year forecast (ending March 31, 2025): net sales ¥12,568 million, operating profit ¥2,526 million, ordinary profit ¥2,499 million, profit ¥1,613 million, basic EPS ¥39.05.

• Non-GAAP full-year forecast: operating profit ¥2,681 million, profit ¥1,760 million, non-GAAP EPS ¥42.62.

• No change to previously announced forecasts.

• Long-term targets focus on profit growth through operating leverage and continued investment in growth areas.