Confirmed INVASE buy-and-resell model achieved full-year profitability and Moge Check profitability improved with CPA halved; focus now shifts to expansion into owner-occupier real estate brokerage via CAPS launch

Key Positives From The Results

The INVASE business completed its structural shift from brokerage to buy-and-resell, achieving its first full-year profit. The Moge Check business also reached record-high profitability metrics with CPA down 56% and ROAS of 476%. Simultaneous profitability in both segments underpins higher-quality consolidated earnings for the second consecutive year, with operating income finishing 11.1% above guidance.

• INVASE contract volume reached 678 deals (+97.7% YoY), with the buy-and-resell model now firmly established, delivering full-year segment profit of JPY 58M — the first annual profit on record
• Moge Check CPA fell 56% YoY, with the ad spend ratio declining to 21%, pushing margin (revenue minus advertising expenses) to an all-time high
• Recognition of JPY 129M in deferred tax assets resulted in a JPY -93M total income tax adjustment, contributing to net income of JPY 308M (+92.8% YoY) — a significant upside driver
• FY06/2027 guidance calls for operating income of JPY 371M (+67.0% YoY), with planned entry into owner-occupier real estate brokerage centered on CAPS
• Capital policy actions including new share issuance and capital reduction expanded capital surplus, accelerating the elimination of accumulated losses in retained earnings

Key Concerns From The Results

Moge Check revenue declined to JPY 1,251M (-36.8% YoY), with financial institutions continuing to curtail advertising budgets amid rising interest rates — a structural headwind. The INVASE business saw volatility inherent in the buy-and-resell model materialize as a challenge, with changes to bank underwriting criteria in Q3 causing some deals to slip into the next fiscal year, leaving INVASE below its full-year budget.

• Moge Check revenue declined 36.8% YoY, with registered users falling to 121K (-9.7% YoY), indicating a deceleration in customer acquisition
• OPM compressed to 2.7% (vs. 8.3% prior year), primarily driven by higher COGS ratio from INVASE buy-and-resell activity (COGS JPY 6,405M, +756.1% YoY)
• Operating cash flow of JPY -1,015M, with working capital ballooning from a JPY 1,328M buildup in real estate held for sale (+JPY 1,247M YoY)
• Interest-bearing debt of JPY 910M emerged (from zero in the prior year), with equity ratio declining 17.1pp to 70.6% (from 87.7%)
• INVASE segment margin of just 0.8% leaves limited cushion, raising questions about resilience in a real estate market downturn

Focus Areas / Items To Monitor Going Forward

• Timeline for CAPS owner-occupier brokerage service to reach revenue contribution, and quantitative outlook for cross-sell synergies with Moge Check and INVASE. Progress toward achieving "intra-CAPS transactions" by Q4 FY06/2027 is critical
• Commercialization schedule for Moge Check's financial institution API integration and MCP development, and likelihood of reaching the target of 100 real estate companies as users. Reducing dependence on financial institution ad spend is the key to top-line recovery
• Inventory turnover efficiency on the JPY 1,328M real estate held for sale, and risk management framework for sourcing in a rising rate environment. Repayment plan for JPY 910M in borrowings and working capital management policy

Key Financial Highlights

The +185.0% YoY revenue increase is primarily attributable to the gross-up effect from INVASE's transition to a buy-and-resell model (recognizing total property transaction value). Adjusted for the gross-up, revenue was JPY 2,295M (-21.4% YoY). The significant net income outperformance of +104.5% versus guidance was driven by a JPY -95M income tax adjustment resulting from the recognition of JPY 129M in deferred tax assets.

Performance By Business Segment

The Moge Check business saw revenue stabilize as the impact from the shift in revenue recognition from "referral-based" to "execution-based" fees largely lapped from Q3 onward. Advertising expenses were cut 45% YoY, securing segment profit. The INVASE business saw revenue surge +654.5% YoY (+91.8% adjusted for gross-up) as the buy-and-resell model took hold, achieving its first full-year profit.

Segment Performance Table

Progress Versus Full-Year Guidance

As these are full-year results, the progress rate concept does not apply. Against the revised guidance announced on May 14, 2026 (revenue JPY 8,092M, operating income JPY 200M), all line items exceeded targets: revenue at 102.8%, operating income at 111.1%, and net income at 204.5%. The significant net income outperformance was driven by the recognition of deferred tax assets.

• Moge Check: Mortgage demand peaks in the spring moving season (Jan–Mar) and falls off during Obon and year-end holidays. Revenue and operating income are expected to remain H2-weighted next fiscal year
• INVASE: Real estate transactions tend to cluster around fiscal year-end and calendar year-end, while sourcing and sales slow during Obon and year-end. Next fiscal year is also planned to be H2-weighted, factoring in time required for organizational reinforcement

Next Fiscal Year Guidance

FY06/2027 guidance assumes higher INVASE transaction volumes, expanded loan services, and launch of owner-occupier brokerage via CAPS, projecting revenue +23.1% and operating income +67.0%. For Moge Check, a slight revenue decline is assumed given continued financial institution ad spend restraint, though operating income is projected at +23.7%.

• Revenue: JPY 10,241M (+23.1%)
• Operating Income: JPY 371M (+67.0%)
• Recurring Profit: JPY 369M (+71.6%)
• Net Income: JPY 368M (+19.3%)
• EPS: JPY 36.11 (+12.9%)

Commentary On Shareholder Returns

The annual dividend for FY06/2026 is JPY 0 (unchanged from the prior year). The FY06/2027 forecast also calls for an annual dividend of JPY 0. Retained earnings remain in a deficit position at JPY -999M, and the timing for initiating dividends has not been determined.

Financial Position

The buildup of real estate held for sale (+JPY 1,247M) resulted in JPY 910M of newly incurred interest-bearing debt, with the equity ratio declining to 70.6% (from 87.7%). On the other hand, capital policy actions including new share issuance and capital reduction increased capital surplus by JPY +829M, narrowing the accumulated deficit in retained earnings to JPY -999M.

News Released Alongside The Earnings Announcement

Major Announcements During The Quarter

Large-Shareholding Filings / Material Proposals Over The Past Year

• Zenkoku Hosho: 0.0% → 10.0% (2026/01/08) — Held for the purpose of capital-business alliance with the issuer
• Yui Capital Partners: 8.20% → 9.43% (2025/08/22) — Pure investment
• Rakuten Securities: 6.27% → 5.27% (2026/08/07) — Temporary holding related to securities business (position adjustment)