CL HOLDINGS Inc.
4286・Standard Market・Services
Business
CL Holdings, Inc. is a company listed on the TSE Standard Market that transitioned to a holding company structure in January 2022. With 8 consolidated subsidiaries under its umbrella, the company develops services across three business domains—marketing, location-based entertainment, and merchandising—centered on its "Ex-tainment" business, which combines "experience value" with "entertainment." Its main services include contracted campaigns for convenience stores (Distribution Entertainment Business), the Entertainment MD Business (Proprietary Kuji Service), theme cafes utilizing IP content, and PMD Service (Promotion & Merchandising Service), which combines sales promotion and merchandise sales. The company is organized as a single segment, the Marketing Services Business (Single Segment), which broadly supports client companies' customer acquisition and retention activities.
Business Model
The company undertakes campaign planning, merchandise sales, and theme cafe operations on commission from client companies (convenience stores, restaurant chains, IP content holders, etc.), earning revenue from these services. Against purchases of ¥25,958 million (down 2.3% year on year), the company recorded revenue of ¥39,002 million, securing gross profit of ¥12,982 million (gross margin of 33.3%). Profitability has improved through portfolio optimization via the scaling down of and withdrawal from low-profitability businesses, as well as an increase in profitable projects and improved merchandise sell-through rates.
Company Strengths
In the Distribution Entertainment Business, contracted campaign work for convenience stores progressed favorably, driving increases in revenue and gross profit. The company has built ongoing business relationships with major clients, as exemplified by its transaction track record with Nintendo, which accounted for 13.6% of sales (¥5,223 million) in the previous fiscal year.
The company obtained ISO9001 certification in January 2008 and established a production management department. In March 2012, it established a subsidiary in Shenzhen, China (Ruike Si (Shenzhen) Trading Co., Ltd.) primarily for production and quality management consulting, building a quality improvement system for the group as a whole.
The company optimized its business portfolio by revising plans and scaling down projects in the domestic Event Business and Prize Business. In FY2025, operating profit was ¥1,404 million (up 359.9% year on year) and gross profit was ¥12,982 million (up 15.2% year on year), with the effects of profitability improvement clearly reflected in these figures.
ENVALITH's Perspective
Performance Trend
Revenue continued its expansionary trend, growing from ¥20,227 million in FY2021 to ¥39,002 million in FY2025, and reached ¥8,311 million in Q1 FY2026 (ending December 2026), up 7.9% year on year. Operating profit fell to ¥305 million in FY2024 before recovering sharply to ¥1,404 million in FY2025, and in Q1 FY2026 it turned profitable at ¥152 million, versus a loss of ¥299 million in the same period of the prior year. Improvement in gross profit (gross margin of 33.5% versus 31.2% in the same period of the prior year) is proceeding alongside reductions in SG&A expenses, confirming the sustainability of the profitability improvement. The full-year forecast remains unchanged at revenue of ¥41,000 million (up 5.1% year on year) and operating profit of ¥1,700 million (up 21.1% year on year). As external factors, improvement in the employment and income environment and rising inbound demand serve as tailwinds, while trends in US trade policy and price increases driven by surging resource prices remain downside risks.
Growth Strategy
Strengthening earning power through maximizing synergies across three business areas and continued investment in overseas expansion and M&A
The company aims to expand orders centered on contracted campaigns for convenience stores (PMD Service) and the Limited Distribution Service. In the first quarter of FY2026 (ending December 2026), the promotion business and distribution entertainment business performed well, driving overall revenue growth. They are positioned as key growth drivers for the full fiscal year as well.
In the first quarter of FY2026 (ending December 2026), the food entertainment business saw a decline in revenue, prompting efforts to scale down and withdraw from low-profitability stores while shifting toward the more profitable Theme Cafe Service. The company aims to differentiate itself through experience-based services utilizing IP content.
The company continues to grow the Proprietary Kuji Service within the Entertainment MD Business (Proprietary Kuji Service). Through the planning and sale of limited-edition products and IP-based merchandise, it aims to increase the proportion of highly profitable proprietary products, diversifying its revenue structure away from reliance on contracted work.
From the first quarter of FY2026 (ending December 2026), the company has reviewed the officer and executive officer structure of itself and its group companies to strengthen governance and improve management efficiency, establishing a system for the steady execution of its medium-term management policy.
The company maintains a policy of continuous, appropriately balanced investment in overseas expansion—including the utilization of Japanese IP content in Asia—as well as M&A, AI, and human capital. In the first quarter of FY2026 (ending December 2026), cash flow from investing activities showed an inflow of ¥147 million (compared to an outflow of ¥324 million in the same period of the prior year), indicating a relatively restrained investment stance.
Last updated: July 17, 2026