Laxus Technologies, Inc.

Business Details

Centered on the brand bag-focused subscription service "Laxus" launched in 2015, the company has built a "circular value model for goods" combining a monthly flat-rate rental service, the trial purchase service "Kaechau Laxus," and bag sales through BtoB/BtoC channels. Primary users are women in their 20s to 50s (approximately 73% of whom are working women). For FY2026 (ending March 2026), full-year revenue was ¥2,281 million and operating profit was ¥184 million, marking a significant year-on-year decline in profit. The company is also developing new services such as "Lax-mochi" and "ShaaS (Sharing as a Service)."

Recent Overview

In FY2026 (ending March 2026), both revenue and profit declined significantly, and operating cash flow turned negative

Full-year revenue for FY2026 (ending March 2026) was ¥2,281 million (down 11.1% year on year), and operating profit was ¥185 million (down 68.7% year on year), reflecting a substantial decline in profit. Due to declining advertising investment efficiency, the company shifted its strategy in the second half toward expanding new sales channels with a focus on advertising efficiency. Operating cash flow was negative at ¥105 million (compared with a positive ¥558 million in the prior period), marking its first-ever negative figure. On the other hand, the number of contracts showed a recovery trend, increasing by 1,188 from the end of the third quarter to 19,254. For FY2027 (ending March 2027), the company forecasts revenue of ¥2,547 million (up 11.6% year on year) and operating profit of ¥295 million (up 59.5% year on year).

Key Products

Growth Drivers

• Optimization of acquisition channels with a focus on CPA (customer acquisition cost) to increase contract numbers, along with improvements in retention (reduction of churn rate)
• Monetization of non-utilized inventory through full-scale rollout of Lax-mochi (a new revenue model that "converts idle time into revenue")
• Simultaneous listing on external e-commerce malls such as Rakuten via a generative AI-powered automated listing system, maximizing inventory turnover
• Expansion of in-person sales, including inbound customer acquisition at the Shibuya store, and diversification of sales channels through e-commerce
• Establishment of new contract acquisition channels not reliant on advertising through ShaaS (Sharing as a Service)
• Improvement in bag quality and product lineup through development of new procurement channels, leading to improved retention
• Suppression of churn through promotion of long-term plans and point-based incentives

Risks

• Risk of revenue shortfall versus plan due to delays in acquiring ShaaS partner companies and completing system integrations
• Delayed emergence of a new revenue source due to delays in the full-scale rollout of Lax-mochi
• Rising customer acquisition costs and slowing contract growth due to continued decline in advertising investment efficiency
• Profit pressure from persistently high selling, general and administrative expenses (¥1,413 million in FY2026 ending March 2026, up 4.2% year on year)
• Financial burden and interest rate risk associated with outstanding long-term borrowings (¥660 million as of end of March 2026)
• Liquidity risk from operating cash flow turning negative (-¥105 million) and a decline in cash balance (¥1,181 million)
• Uncertainty in profit plans, as indicated by an increase in the valuation allowance related to loss carryforwards (a ¥30 million decrease in deferred tax assets)
• Risk of price fluctuations and rising procurement costs in the luxury brand bag market
• Risk of demand decline due to changes in consumer behavior driven by exchange rate fluctuations and inflation
• Compliance costs and risks associated with legal regulations such as the Act against Unjustifiable Premiums and Misleading Representations and the Secondhand Article Dealer Act