Laxus Technologies (288A) Q4 2026 earnings summary

Executive summary

• FY2026 revenue was ¥2,280.9 million, 88.9% of the previous year but 104% of forecast, driven by strong bag sales despite subscription weakness.

• Operating profit was ¥184.9 million (31.3% YoY), exceeding forecast by 110.7% but down from ¥590 million YoY.

• Net profit was ¥98.4 million, 22.6% of the previous year, but 118.3% of forecast.

• Subscription contracts rebounded in H2, reaching 19,254 at year-end, up 1,188 from Q3, with improved conversion and churn rates.

• Launched "Rakumochi" (Lax-mochi) smart keep service (beta) in December 2025 and expanded EC and in-store sales channels.

Financial highlights

• Revenue: ¥2,280.9 million (YoY -11.1%), Operating profit: ¥184.9 million (YoY -68.7%), Net profit: ¥98.4 million (YoY -77.4%).

• Gross margin declined to 70.1% from 75.9% YoY due to higher bag sales mix and increased cost of sales.

• SG&A expenses increased to ¥1,413 million (YoY +4.2%), mainly from higher advertising.

• Cash and deposits at year-end: ¥1,180.5 million, down ¥341.5 million YoY.

• Free cash flow was negative at -¥86 million, mainly due to rental asset acquisition.

Outlook and guidance

• FY2027 guidance: Revenue ¥2,546.6 million (+11.6%), Operating profit ¥295 million (+59.5%), Net profit ¥152.6 million (+55.1%).

• Contract numbers expected to grow to 22,279 by March 2027, with focus shifting from volume to quality and CPA efficiency.

• Advertising spend to be reduced by 17% while maintaining new contract growth.

• Expects cost increases in personnel, shipping, and EC fees, but aims for more efficient advertising spend.

• New services and inventory sharing models to drive growth.