TSUKURUBA Inc.

Business Details

Operates "cowcamo," a platform for the distribution of used and renovated homes that combines IT and design. Main services include property information distribution via online media, real estate brokerage by in-house agents, renovation services, and the development and sale of in-house planned products. Main revenue sources are real estate brokerage commissions and revenue from the sale of in-house planned products. Targets the used condominium distribution market in the greater Tokyo area, and has internalized construction functions by making Cowcamo Koumuten Co., Ltd. a consolidated subsidiary.

Recent Overview

Net sales grew 36.6% year on year, but the company fell into an operating loss for cumulative Q3 due to an increase in SG&A expenses

For the cumulative nine months of FY2026 (ending March 2026) (August 2025 to April 2026), net sales maintained high growth at ¥7,902 million (up 36.6% year on year). On the other hand, selling, general and administrative expenses expanded to ¥2,839 million (up 17.2% year on year) due to strengthened marketing activities, exceeding gross profit of ¥2,800 million and resulting in an operating loss of ¥39 million. Interest expense also doubled to ¥60 million (from ¥31 million in the same period prior year), resulting in an ordinary loss of ¥147 million. Extraordinary income included a gain on reversal of stock acquisition rights of ¥55 million, compensation received of ¥11 million, and insurance income received of ¥10 million. Real estate for sale surged by ¥1,652 million from the end of the prior fiscal year to ¥3,294 million, and total liabilities expanded to ¥5,539 million due to increases in short-term borrowings and the current portion of long-term borrowings. The full-year earnings forecast was revised, and the company now expects net sales of ¥11,500 million and operating profit of ¥130 million.

Key Products

Growth Drivers

• Expansion in the number of contracted sales of used condominiums in the greater Tokyo area (up 0.4% year on year for the three months from February to April 2026) and rising per-square-meter contract price (¥859,300 in April 2026, up 5.9% year on year, exceeding the same month of the prior year for 72 consecutive months)
• Medium- to long-term expansion of used condominium distribution against a backdrop of persistently high new condominium prices
• Expansion of the used and renovated housing segment driven by growing customer awareness of renovation
• An autonomous growth cycle centered on the cowcamo platform (user accumulation → data accumulation → increased property supply → further user growth)
• Improved profitability per transaction through expansion of in-house planned products
• Internalization of renovation construction functions through the consolidation of Cowcamo Koumuten Co., Ltd. as a subsidiary
• Strengthening of the capital base through a third-party allotment of new shares (320,400 new shares issued in April 2026)

Risks

• Expansion of working capital needs and increased reliance on borrowings due to a sharp increase in inventory assets (real estate for sale of ¥3,294 million and real estate for sale in progress of ¥1,819 million)
• Risk of deteriorating profitability, as increases in selling, general and administrative expenses exceeded gross profit, resulting in an operating loss of ¥39 million for cumulative Q3
• Increased reliance on short-term borrowings (¥2,452 million) and the current portion of long-term borrowings (¥1,894 million), leading to a rise in financial leverage and a decline in the equity ratio (from 29.1% at the end of the prior fiscal year to 25.8%)
• Increased interest expense amid rising interest rates (¥60 million for cumulative Q3, double the ¥31 million recorded in the same period prior year)
• Impact on personal consumption through reduced purchasing power and worsening consumer sentiment due to rapid price increases
• Risk to brand and credibility associated with a compliance-related matter concerning a former representative director (special investigation costs, etc. of ¥10 million recorded for cumulative Q3)
• Risk of entry by competitors offering similar services (integrated service offerings spanning real estate portals, brokerage, and renovation)
• High hurdle to achieving the full-year operating profit forecast of ¥130 million, which requires approximately ¥169 million in operating profit in Q4 alone