ENVALITH
株式会社LOIVE logo

LOIVE Co., Ltd

352A・Growth Market・Services

株式会社LOIVE logo
LOIVE Co., Ltd352A

Business

LOIVE Co., Ltd. is a wellness company that operates women-only boutique-style fitness studios nationwide through a directly-managed store format, under the purpose of "Loving oneself, creating radiant women." As of the end of March 2026, the company operates 5 brands and 200 stores centered on the hot yoga studio "loIve" and the machine Pilates specialty studio "pilates K," with monthly contract membership reaching approximately 83,000 people. The company targets a broad range of women in the F1 to F3 demographic segments, offering a combination of experiential value through group lesson formats and functional value that supports women's beauty and health. Founded in Sapporo, Hokkaido in 2008, the company listed on the Tokyo Stock Exchange Growth Market in April 2025 and is currently in a growth stage.

Business Model

Revenue is a monthly membership fee subscription model composed of "members per store × average revenue per member × number of stores." Costs are primarily fixed costs centered on rent and instructor personnel expenses, creating a structure where profit margins rise once the break-even point is exceeded as membership grows. The small-scale design of 65-80 tsubo per store keeps initial investment low, and group lessons where one instructor serves an average of 20-30 members simultaneously reduce the personnel cost ratio. Increasing average revenue per member through merchandise sales (the &fit series, etc.) also functions to supplement earnings.

Company Strengths

By adopting a small-scale design of 65-80 tsubo per store, initial investment is kept low, reducing barriers to new store openings. The number of stores grew from 82 at the end of March 2023 to 200 at the end of March 2026, a net increase of 118 stores over three years, with pilates K expanding rapidly from 13 to 125 stores. The ease of renewal into other brands and low withdrawal costs also support the agility of multi-store expansion.

Through a group format in which one instructor provides simultaneous lessons to an average of 20-30 members, the ratio of personnel expenses to sales is significantly reduced compared to personal services. Combined with the stable accumulation of revenue from a monthly membership fee subscription model, this achieved an operating margin of 11.8% in FY2025 (ended March 2025).

The company has adopted a personnel strategy differentiated within the industry, with 99% of employees being female and instructors employed primarily as full-time staff. By enabling instructors to work across multiple brands and centralizing recruitment, the company has built a system that allows for the flexible allocation of personnel between brands, reducing personnel procurement costs and hiring risks when accelerating store openings.

ENVALITH's Perspective

In FY2026 (ending March 2026), the company maintained high growth with net sales of ¥11,421 million (+34.5% year on year), but selling, general and administrative expenses ballooned to ¥3,372 million (+46.8% year on year) due to increased advertising expenses associated with its oligopoly strategy, among other factors. As a result, operating profit fell to ¥722 million (△28.1% year on year), and the operating margin dropped sharply from 11.8% to 6.3%. Furthermore, the forecast for FY2027 (ending March 2027) points to continued substantial profit declines, with operating profit of ¥270 million (△62.6%) and net income attributable to owners of the parent of ¥40 million (△88.1%), making it the key focus point as to where profitability will bottom out during this strategic investment phase.

Long-term borrowings (including the current portion due within one year) reached ¥3,464 million at the end of FY2026 (ending March 2026), while the equity ratio remained at just 25.6%. As a subsequent event, the company entered into a ¥1,800 million term loan agreement with MUFG Bank (covenants include maintaining net assets at 75% of a base level and prohibiting ordinary losses for two consecutive periods) as well as a ¥1,000 million overdraft facility agreement with Hokuyo Bank. The low forecast level of ordinary profit of ¥150 million for FY2027 (ending March 2027) is a level that raises awareness of covenant breach risk. Investors should closely monitor the simultaneous progression of expanding financial leverage and declining profitability.

For FY2027 (ending March 2027), the company plans to open 71 new stores, primarily under pilates K, and capital expenditures on property, plant and equipment are expected to expand further from the FY2026 (ending March 2026) actual of ¥1,498 million. Investing cash flow of △¥1,753 million significantly exceeded operating cash flow of ¥848 million, and free cash flow has remained persistently negative. Impairment losses also rose to ¥81 million in FY2026 (ending March 2026), approximately 20 times the previous year's level. The speed at which newly opened stores become profitable and the profitability management of existing stores will be key to recovering investment. As an external factor, the expanding trend of the domestic fitness market is a tailwind, but intensifying competitive entry poses the risk of pushing up store opening costs and member acquisition costs.

Growth Strategy

Aiming to complete market dominance in the Pilates sector, the company is pursuing 71 additional new store openings, LTV improvement, and revenue diversification.

The company plans to open 71 new stores in FY2027 (ending March 2027), primarily under the pilates K brand, aiming to expand from 200 stores at the end of FY2026 (ending March 2026) to a 271-store network. New borrowing facilities of ¥1,800 million from MUFG Bank and ¥1,000 million from Hokuyo Bank have been secured to fund capital expenditures.

Through the continuous release of new lessons, the introduction of new membership plans for stores where reservations are difficult to secure, and the expansion of operating days, the company aims to increase member retention and usage frequency, thereby improving LTV (customer lifetime value). Membership grew to 83,000 members (+34% year on year) at the end of FY2026 (ending March 2026).

Through strengthened merchandise sales centered on subscription purchases, the merchandise sales ratio grew to 7.6% (+0.8 percentage points year on year). The company continues to launch new products and improve costs, simultaneously pursuing higher per-member spending and improved profitability.

The company has launched a new business, the Women's Talent Development Program "Mission'S," which systematizes the expertise accumulated through years of managing a female workforce. By providing "talent development capability" as a service in response to the social issue of promoting women's advancement, the company aims to diversify its revenue base and enhance its brand value.

Last updated: July 19, 2026