GA technologies Co.,Ltd.

Business Details

Through the AI real estate investment services "RENOSY" and "RENOSY by Renters Warehouse," the segment provides one-stop purchase, sale, and management services for domestic and overseas real estate to customers in Japan and abroad. For real estate owners, it offers rental management plans on a subscription (fixed-fee) basis, forming a structure that accumulates stable recurring revenue. It also operates "dearlife by RENOSY" (a rental platform for Japanese expatriates in Thailand) and "Sinkyaku Byousan" (targeting Chinese-speaking investors). In the six months ended April 2026 (H1 FY2026, ending March 2026), external revenue was ¥138,418 million, accounting for approximately 97% of consolidated revenue.

Recent Overview

Revenue maintained high growth of +29.5% year-on-year, but the increase in segment profit was limited.

In H1 FY2026 (ending March 2026) (November 2025 to April 2026), the RENOSY Marketplace Business's external revenue continued to grow strongly at ¥138,418 million (up 29.5% year-on-year). Meanwhile, segment profit (business profit) reached only ¥7,092 million (up 14.2% year-on-year), with profit growth lagging behind revenue growth. On a consolidated basis, selling, general and administrative expenses increased significantly from ¥15,291 million in the same period last year to ¥20,585 million, and the increase in company-wide expenses (the adjustment amount widened from -¥3,168 million to -¥4,098 million year-on-year) is weighing on consolidated business profit. In addition, inventory assets surged from ¥11,682 million at the end of the previous fiscal year to ¥19,092 million, and inventory risk and increased funding needs associated with the buildup of acquired properties continue.

Key Products

Growth Drivers

• Rising real estate investment appetite among individual investors, driven by the "shift from savings to investment" policy and the new NISA program
• Increase in sales volume driven by expansion of the RENOSY membership stock
• Maximization of gross profit through expanded product lineup (new compact condominiums, etc.)
• Accumulation of recurring revenue through growth in the number of subscription contracts
• Market expansion driven by an increasing trend in the number of contracted sales of used condominiums in the Greater Tokyo area (per statistics from the Real Estate Information Network for East Japan)
• Diversification of the customer base through expansion into overseas real estate (US, Thailand, Greater China)

Risks

• Risk of declining investment demand due to rising interest rates or deterioration in the real estate market
• Rising SG&A ratio and profit pressure from increased advertising and personnel expenses (company-wide expense adjustment widened by ¥930 million year-on-year)
• Increased inventory risk and funding needs due to a sharp rise in inventory assets (from ¥11,682 million at the end of the previous fiscal year to ¥19,092 million at the end of H1)
• Increased financial leverage due to a substantial rise in short-term borrowings (bonds and borrowings within current liabilities rose from ¥12,488 million at the end of the previous fiscal year to ¥21,668 million at the end of H1)
• Cash flow risk, with operating cash flow turning negative at -¥5,249 million (versus +¥5,645 million in the same period last year)
• Progress risk from second-half-weighted performance in achieving the full-year forecast (revenue of ¥323,000 million)

Business Details

The ITANDI Business is a B2B-focused segment providing business support SaaS to real estate brokerage and management companies. Centered on a suite of SaaS products covering rental management, brokerage, and sales/purchase, along with the inter-agent property listing site "ITANDI BB," it operates a platform business leveraging network effects. The segment also engages in a data platform business for the real estate industry.

Recent Overview

Revenue increased 7.7% year-on-year, but segment profit declined 8.2%, indicating deteriorating profitability

In H1 FY2026 (ending March 2026) (November 2025 to April 2026), ITANDI Business revenue maintained growth at ¥3,639 million (versus ¥3,378 million in the same period last year, up 7.7% year-on-year), while segment profit (business profit) declined to ¥781 million (versus ¥851 million in the same period last year, down 8.2% year-on-year). Revenue growth has slowed significantly from the previous full fiscal year (up 45.9% year-on-year), and the decline in profit margin due to increased expenses has become apparent. While no full-year earnings forecast has been disclosed, the decline in profit levels at the interim stage poses a challenge to achieving full-year targets.

Key Products

Growth Drivers

• Expansion of the number of client companies and products through network effects of vertical SaaS
• Revenue contribution and customer base expansion from past M&A activities (Dangonet, Housmart, Mercury, etc.)
• Expansion of sales channels into both the rental and sales/purchase domains, and promotion of cross-selling across multiple products
• Building of platform power through rapid growth in ITANDI BB page views
• Revenue diversification through increased usage of lifeline services
• Expansion of the real estate industry data platform business

Risks

• Revenue growth rate has slowed sharply from 45.9% year-on-year growth in the previous full fiscal year to 7.7% growth in the interim period, raising concerns about the sustainability of growth momentum
• Interim segment profit declined 8.2% year-on-year, turning to a decrease, indicating a risk of declining profit margins due to rising expenses
• Against the FY2026 (ending March 2026) revenue target of ¥8,400 million in the medium-term management plan, interim results of ¥3,639 million (approximately 87% of the target on an annualized basis) mean that significant acceleration in the second half is required to achieve the target
• As a highly specialized SaaS for the real estate industry, deterioration in the real estate market or reduced capital expenditure in the industry could directly impact the number of client companies and ARR
• Risk of price competition and rising churn rates due to the emergence of competing SaaS vendors

Business Details

This is a business segment not included in the reportable segments (RENOSY Marketplace Business and ITANDI Business), and mainly includes a fully industry-specialized M&A advisory service business. Leveraging deep understanding of the real estate industry and the technology and data assets of the GA Technologies Group, it provides speedy and highly transparent M&A advisory and share value enhancement consulting.

Recent Overview

Both interim revenue and segment profit declined significantly year-on-year

In H1 FY2026 (ending March 2026) (November 2025 to April 2026), the Other segment's external revenue fell sharply to ¥346 million (versus ¥504 million in the same period last year, down approximately 31% year-on-year), and segment profit (business profit) declined to ¥88 million (versus ¥295 million in the same period last year, down approximately 70% year-on-year). This decline is believed to reflect the dependence of M&A advisory operations on the timing of deal closings. External revenue accounted for only approximately 0.2% of consolidated revenue of ¥142,403 million.

Key Products

Growth Drivers

• Enhanced deal-sourcing capability through a differentiation strategy focused on the real estate industry
• Strengthened service competitiveness through utilization of technology and data assets held by the GA Technologies Group
• Market growth driven by expansion of the domestic M&A market (including increasing demand related to business succession)

Risks

• As a small segment, its contribution to consolidated results is limited (external revenue of ¥346 million represents approximately 0.2% of consolidated revenue of ¥142,403 million)
• Since M&A advisory operations depend on the timing of deal closings, quarterly results are highly volatile; in H1 FY2026 (ending March 2026), revenue declined approximately 31% and business profit declined approximately 70% year-on-year, reflecting significant fluctuation
• As an "Other" category not included in the reportable segments, the priority for resource allocation is lower than that of the two main segments