Summary
In 1H FY10/2026, revenue held up at a high growth rate of JPY 142,403M (+28.5%), but business profit came in at JPY 3,863M (-7.8%) and operating income at JPY 3,759M (-9.6%), both declining YoY. The full-year plan (revenue JPY 323,000M, operating income JPY 10,000M) is heavily weighted toward 2H, and since the TV commercial campaign planned at the start of the year is being run in 3Q, profit accumulation is expected to be concentrated in 4Q. We therefore want to gauge the initial read on top-line progress. Segment profit for the RENOSY Marketplace business grew +14.2% (our estimate), while the ITANDI business posted a profit decline, and corporate expenses widened from -JPY 3,001M to -JPY 3,819M. The balance between growth investment and margins is thus the key focus. In 1H, inventories built up from JPY 11,682M to JPY 19,092M, and operating cash flow was -JPY 5,249M. We want to check whether purchased inventory converts into 2H revenue, using 3Q revenue and net revenue growth as the gauge.
Key Points for Next Quarter
| Key Points & Focus | Implications |
|---|---|
Full-Year Plan ProgressProgress of 3Q cumulative operating income and net revenue against the full-year plan | 1H operating income of JPY 3,759M represents 37.6% of the full-year plan of JPY 10,000M, while net revenue of JPY 25,513M represents 45.6% of the JPY 55,900M target (both our estimates). This is the first checkpoint for assessing the feasibility of the 2H-weighted plan. |
RENOSY GrowthSegment revenue and segment profit of the RENOSY Marketplace business | 1H segment revenue was JPY 138,418M with segment profit of JPY 7,092M (vs. JPY 6,212M a year earlier). Margin declined from 5.8% to 5.1% (our estimate), making the trade-off between top-line growth and profitability the key focus. |
ITANDI GrowthSegment revenue growth rate and segment profit of the ITANDI business | 1H revenue was JPY 3,706M (+9.0%) with segment profit of JPY 781M (-8.2%; both our estimates). Margins are trending lower as the company brings part of its lifeline services in-house — an initiative launched this fiscal year — but an improvement in absolute profit is the key checkpoint. |
Cost StructureTrend in corporate expenses included in segment profit adjustments | Corporate expenses widened from -JPY 3,001M to -JPY 3,819M, the main driver of the gap between total segment profit of JPY 7,962M and business profit of JPY 3,863M. A slowdown in this growth pace on a 3Q cumulative basis is key to narrowing the profit decline. |
Working Capital / FinancingInventory balance and operating cash flow | Inventories stood at JPY 19,092M (vs. JPY 11,682M at end-FY), and operating cash flow was -JPY 5,249M (vs. +JPY 5,645M a year earlier). We will assess inventory conversion into revenue alongside the level of bonds and borrowings at JPY 31,318M. |
Key Issues from Previous Results (2Q FY10/2026)
In 1H, revenue grew +28.5% and net revenue +24.5%, maintaining the trend growth rate, while business profit declined -7.8%. Higher corporate expenses and the ITANDI profit decline offset RENOSY's revenue gains, and the full-year plan (operating income JPY 10,000M, +41.5%) assumes profit is concentrated in 2H. For 3Q, the issue is whether the company can simultaneously demonstrate revenue recognition of accumulated purchased inventory and a moderation in cost growth.
1. Progress Against the 2H-Weighted Full-Year Plan
- Previous Quarter: Business profit of JPY 3,863M (-7.8%) against a full-year plan of JPY 10,000M. No revision to full-year guidance.
- What to Watch This Quarter: Achieving the full-year plan requires JPY 6,137M of business profit in 2H (our estimate). We will assess how close 3Q cumulative profit comes to prior-year levels (3Q cumulative business profit of JPY 5,951M last year).
- Key Metrics: 3Q cumulative business profit as a percentage of the full-year plan; net revenue progress against the JPY 55,900M full-year target; whether full-year guidance is left unchanged.
2. RENOSY Marketplace Revenue Growth and Profitability
- Previous Quarter: Net revenue of JPY 10,551M (vs. JPY 7,823M a year earlier). Business profit as a percentage of net revenue fell to +32.9% from 37.4% a year earlier, mainly due to TV commercial costs booked in 1Q as part of the branding strategy.
- What to Watch This Quarter: Sustainability of the revenue growth pace, with net revenue growth (RENOSY gross profit + ITANDI and other revenue) serving as the key gauge of underlying earnings power.
- Key Metrics: 3Q cumulative net revenue, YoY.
3. ITANDI Growth and Margins
- Previous Quarter: Segment revenue of JPY 3,706M (vs. JPY 3,400M a year earlier, +9.0%) and segment profit of JPY 781M (vs. JPY 851M, -8.2%). Margin declined from 25.0% to 21.1% (both our estimates).
- What to Watch This Quarter: Whether expanded SaaS product functionality and a larger installed customer base reaccelerate revenue growth, and whether the profit decline from upfront investment persists into 3Q.
- Key Metrics: 3Q cumulative ITANDI segment revenue growth (1H: +9.0%), segment profit, and segment margin YoY.
4. Balance Between Corporate Expenses and Business Profit Margin
- Previous Quarter: Segment profit adjustments were -JPY 4,098M (vs. -JPY 3,168M a year earlier), comprising corporate expenses of -JPY 3,819M and amortization of intangibles identified in business combinations plus acquisition-related costs of -JPY 248M. The consolidated business profit margin declined from 3.8% to 2.7% (our estimate).
- What to Watch This Quarter: Whether the increase in corporate expenses runs its course as upfront investment in hiring and systems, verified via 3Q cumulative adjustments and the business profit margin. We will also examine the gap between pre-tax income (-12.4%) and interim profit attributable to owners of the parent (-6.8%) by reviewing finance costs of JPY 593M (vs. JPY 523M a year earlier) and the breakdown of income tax expense.
- Key Metrics: 3Q cumulative segment profit adjustments and corporate expenses; consolidated business profit margin (1H: 2.7%); finance costs YoY.
5. Inventory Build-Up and Cash Flow
- Previous Quarter: Inventories rose from JPY 11,682M at end-FY to JPY 19,092M, and operating cash flow was -JPY 5,249M (vs. +JPY 5,645M a year earlier). Bonds and borrowings totaled JPY 31,318M, comprising JPY 21,668M current and JPY 9,650M non-current (vs. JPY 22,480M at end-FY). The ratio of equity attributable to owners of the parent declined from 37.4% to 33.0%.
- What to Watch This Quarter: Whether purchased inventory is recognized as 3Q revenue and drives an improvement in operating cash flow. We also want to examine the finance cost burden amid expanding financial leverage.
- Key Metrics: End-3Q inventory balance (YoY change); 3Q cumulative operating cash flow; bonds and borrowings balance; ratio of equity attributable to owners of the parent.
Key Timely Disclosures During the Fiscal Year
- 2026/07/08Haseko Livenet, which manages over 120,000 rental units, launches electronic contracting via "ITANDI Rental Management" — Adoption of electronic contracting by a major PM company should support expansion of ITANDI's large-account base and accumulation of SaaS revenue. We want to gauge the contribution to ITANDI segment revenue from 3Q onward. Haseko Livenet, which manages over 120,000 rental units, launches electronic contracting via "ITANDI Rental Management"
- 2026/06/30(Progress of Disclosed Matters) Notice Regarding Completion of Share Acquisition (Conversion into Subsidiary) of SPC Securities Co., Ltd. — Obtaining a financial license enables RENOSY to expand its product range. Consolidation begins from 3Q, so we will check the timing of goodwill/intangible asset recognition and the P&L impact of acquisition-related costs. (Progress of Disclosed Matters) Notice Regarding Completion of Share Acquisition (Conversion into Subsidiary) of SPC Securities Co., Ltd.
- 2026/06/25Notice Regarding Execution of a Loan Agreement with Financial Covenants — Long-term borrowing to fund the share acquisition, a driver of higher interest-bearing debt and finance costs. Bonds and borrowings expanded to JPY 31,318M at end-1H; we will check the end-3Q balance and covenant thresholds. Notice Regarding Execution of a Loan Agreement with Financial Covenants
Previous Quarter Results (2Q FY10/2026 Actuals)
The company operates two segments: the RENOSY Marketplace business (one-stop provision of purchase, sale, and management services for AI-driven real estate investment) and the ITANDI business (SaaS and inter-brokerage platforms for real estate companies). In 1H, net revenue rose +33.3% to JPY 25,513M, while business profit fell -8.4% on higher corporate expenses and the ITANDI profit decline. Full-year guidance was left unchanged at net revenue of JPY 55,900M (+32.2%) and business profit of JPY 10,000M (+53.8%), with the annual dividend forecast at JPY 13.00 year-end (vs. JPY 8.00 in the prior year). Under IFRS, pre-tax interim profit is presented in place of recurring profit.
| Item | Amount | YoY | vs. Company Plan | Notes |
|---|---|---|---|---|
| Net Revenue | JPY 25,513M | +24.5% | - | 1Q: JPY 10,339M (RENOSY JPY 7,427M, ITANDI JPY 1,678M, other); 2Q: JPY 15,173M (RENOSY JPY 11,715M, ITANDI JPY 2,027M, other) |
| Business Profit | JPY 3,863M | -7.8% | - | Total segment profit JPY 7,962M, adjustments -JPY 4,098M |
| Operating Income | JPY 3,759M | -9.6% | - | Other income JPY 81M, other expenses JPY 184M |
| Pre-Tax Interim Profit | JPY 3,193M | -12.4% | - | Finance costs JPY 593M (vs. JPY 523M a year earlier) |
| Interim Profit Attributable to Owners of the Parent | JPY 1,997M | -6.8% | - | Income tax expense JPY 1,163M, non-controlling interests JPY 32M |
| EPS (Basic Interim EPS) | JPY 48.66 | -12.6% | - | Weighted average shares outstanding 41,051,518 (vs. 38,509,280 a year earlier) |
(The company does not disclose 1H guidance, hence "-" for vs. Company Plan. EPS YoY is our estimate.)
Guidance Achievement Rate vs. Full-Year Plan (Operating Income Basis): 37.6% (our estimate; on an operating income basis as recurring profit is not disclosed under IFRS. Prior-year progress against the full-year plan is not verifiable from this earnings release, hence "-".)
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