GOKURAKUYU HOLDINGS CO.,LTD.
2340・Standard Market・Services
Business
Gokuraku-yu Holdings Co., Ltd. is a holding company that operates bathing facilities under the "Gokurakuyu" (Gokuraku-yu) and "RAKU SPA" brands. Since opening its first franchise store in 1996, the company has expanded as a pioneer in the supersento (super public bath) industry, and as of June 2026 operates a total of 40 stores, comprising 30 directly-operated domestic stores and 10 franchise stores. Directly-operated stores generate composite revenue from admission fees, food and beverage, chiropractic services, hairdressing, merchandise sales, and other offerings, while franchise stores generate royalty income. The company also operates two directly-operated "RAKU CAFE" locations and one partner store, "Hinata no Mori," positioning itself as a multi-purpose leisure facility centered on bathing that targets a broad range of age groups and customer segments. The reportable segment is the single segment of "Japan," with the bathing business accounting for all revenue.
Business Model
In directly operated stores, the company adopts a composite revenue model centered on admission fee income, supplemented by ancillary service revenue from food and beverage, spa/massage, barbershop, and merchandise sales. From FC (franchise) stores, the company earns product sales revenue and royalty income based on know-how provision. The structure combines higher per-customer spending from admission fee revisions with sales growth from new store openings, expanding profit while absorbing fixed costs. Investment income from equity-method affiliates (¥99 million in FY2026 (ending March 2026)) also supplements ordinary income.
Company Strengths
After posting an operating loss of ¥569 million in FY2022 (ended March 2022), the company turned profitable in FY2024 (ended March 2024) and renewed its record-high profit for two consecutive fiscal years in FY2025 (ended March 2025) and FY2026 (ending March 2026). Operating profit for FY2026 (ending March 2026) reached ¥1,237 million, and net income reached ¥928 million (up 20.7% year on year), demonstrating a track record of a profit structure shift in which the effect of revenue growth absorbs cost increases.
The company has continuously held collaboration events with anime content and Vtubers, achieving the acquisition of a broad customer base extending beyond the conventional bathing facility user demographic. Each store also runs its own bath and sauna events tailored to local characteristics, contributing to diversified customer acquisition and increased visit frequency. This is explicitly stated in the securities report as a major factor behind business expansion.
The company developed the "RAKU SPA Station" format as an urban-type bathing facility, distinct from suburban super sento (large-scale public bathhouses). It opened the Fuchu store in December 2024 and the Musashi-Koganei store in December 2025 in succession, expanding its reach to new customer segments in urban areas. The Adachi-Kohoku store is planned to open around spring 2027, demonstrating a track record of expanding store opening potential and diversifying business formats.
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive fiscal years, from ¥10,037 million in FY2022 (ending March 2022) to ¥16,246 million in FY2026 (ending March 2026) (up 7.1% year on year). Operating profit recovered from ¥(569) million to ¥1,237 million (up 8.5% year on year) over the same period, marking a record high for the second consecutive fiscal year. Net income attributable to owners of parent was ¥929 million (up 20.7% year on year). The increase in revenue was driven by full-year operation of stores opened in the previous fiscal year, revisions to admission fees, and the new opening of the Musashi-Koganei store. On the cost side, higher labor costs due to minimum wage increases and initial costs for new stores weighed on profit, but this was absorbed by the effect of higher revenue. As an external factor, elevated energy prices continue to exert upward pressure on costs.
Growth Strategy
Aiming to maximize profitability through aggressive rollout of the urban-format business model and measures to raise average spend per customer
In December 2025, the company opened "RAKU SPA Station Musashikoganei" (Koganei City, Tokyo) as a directly-operated store. The compact, well-located urban format expands reach to a customer segment different from the conventional suburban format, contributing to a boost in net sales.
The company plans to open a new store around spring 2027 at a favorable location in Adachi Ward, Tokyo, along the Kanana Street and the Nippori-Toneri Liner line. Continued expansion into urban areas is aimed at growing sales and acquiring new customers.
The company continuously holds collaboration events with anime content, VTubers, and others to attract a broad customer base. By combining original events tailored to each store's regional characteristics with admission fee revisions, it is simultaneously achieving higher average spend per customer and increased revenue.
The company revised admission fees, confirming a revenue-boosting effect from raising average spend per customer. This has contributed to strengthening the earnings structure to maintain profit margins while absorbing rising labor and energy costs.
Last updated: July 19, 2026