LIFULL Co., Ltd.

Business Details

A platform business centered on the real estate and housing information site "LIFULL HOME'S" and the real estate investment/income property information site "Kenbiya," connecting real estate companies (clients) with users searching for housing. Key KPIs tracked include number of listed properties, number of clients, ARPA, number of visitors, and number of inquiries. Following the discontinuation of overseas operations in January 2025, this became the Group's sole reportable segment. The "Other" category includes LIFULL Kaigo (nursing care), regional revitalization business, and others.

Recent Overview

Both revenue and profit increased year on year on an H1 cumulative basis, with an improved operating profit margin

In H1 of FY2026 (ending September 2026) (October 2025 to March 2026), HOME'S-related business revenue was ¥13,584 million (up 4.2% year on year) and segment profit was ¥2,591 million (up 19.1% year on year), representing increases in both revenue and profit. The segment profit margin improved by 2.4 percentage points to 19.1% from 16.7% in the prior-year period. Consolidated operating profit (continuing operations) also rose 28.5% year on year to ¥2,344 million. On the other hand, in Q2 standalone, segment profit of ¥1,260 million was slightly below the prior-year period (¥1,273 million), as an increase in SG&A expenses (¥6,335 million, up 1.9% year on year) weighed on profit. The full-year forecast remains unchanged at revenue of ¥29,700 million and operating profit of ¥3,000 million (down 21.4% year on year).

Key Products

Growth Drivers

• Steady progress across all indicators, including traffic and inquiries, driven by the cumulative effect of site development measures continued since 2021
• Improved cost structure through optimization of advertising and sales expenses (H1 segment profit margin improved to 19.1%)
• Operational efficiency gains and new feature development through AI and generative AI utilization (achieving referrals with higher probability of conversion)
• Enhanced user experience through continuous UX/UI improvements, and expansion and strengthening of the client network
• Concentration of management resources on core domestic business following the discontinuation of overseas operations
• Recognition of financial income including gain on sale of equity-method investments (¥138 million)

Risks

• Suppressed relocation demand due to flat trends in the number of domestic movers
• Market contraction risk due to a decline in new housing starts and persistently high housing prices
• Structural cost increases in the real estate industry stemming from soaring material costs, labor costs, and energy prices
• Full-year FY2026 (ending September 2026) operating profit forecast of ¥3,000 million (down 21.4% year on year), indicating an expected profit decline (H1 progress rate of 78.1%)
• Profit pressure risk from an increasing trend in selling, general and administrative expenses (up 1.9% year on year in Q2 standalone)
• Intensifying competition with rivals over the number of listed properties and user acquisition