Living Technologies Inc.

Business Details

Starting from the housing reuse domain, the business consists of a "matching platform" that connects real estate owners (end users) with housing-related companies (clients) via the web, and "DX Cloud," which supports operational efficiency for clients. The business adopts a pay-per-lead and flat-fee subscription model. Centered on its flagship service Living Match, the company has expanded its business domain to include exterior wall painting DX Nuri Match and construction DX Meta Jutaku Tenjijo. In April 2026, the company made Shinei Co., Ltd., which operates a plumbing/water facility maintenance and renovation business, a subsidiary, entering the real solutions domain.

Recent Overview

The first half saw a decline in both revenue and profit, and following a subsequent event, the company entered the real solutions domain by making Shinei a subsidiary

For the first half of FY2026 (ending September 2026) (October 2025 to March 2026), operating revenue was ¥1,733 million (down 4.1% year on year), and operating profit fell sharply to ¥163 million (down 36.0% year on year). Personnel investment and human resource training costs for the second and third core business candidates led to increased expenses (operating expenses of ¥1,569 million, up 1.2% year on year). Meanwhile, as a subsequent event, the company made Shinei Co., Ltd. a wholly owned subsidiary effective April 1, 2026, at an acquisition price of ¥530 million (¥569 million including related expenses), marking a full-scale entry into the real solutions domain centered on plumbing/water facility maintenance. Additionally, effective May 12, 2026, the company implemented a 1-for-2 stock split to improve market liquidity. The full-year earnings forecast has been revised to net sales of ¥4,070 million (up 13.3% year on year) and operating profit of ¥290 million (down 42.4% year on year).

Key Products

Growth Drivers

• Strengthening customer acquisition capabilities through improvements to Living Match's real estate sales service and returning to a growth trajectory
• Expanding the business foundation through personnel reinforcement and strengthened sales structures for the second core business candidates, Nuri Match and Meta Jutaku Tenjijo
• Advancing entry into the real solutions domain and the digital-real integration strategy through the acquisition of Shinei Co., Ltd. as a subsidiary (April 2026)
• Expanding demand for DX and AI utilization against the backdrop of labor shortages in the housing and living domain
• Strengthening organic customer acquisition and improving advertising cost efficiency through in-house web marketing operations
• Improved stock liquidity and expanded investor base through the stock split (1-for-2, May 2026)

Risks

• Risk that the flagship service Living Match, whose operating revenue declined 4.1% year on year, will delay its return to a growth trajectory
• Risk that upfront investments in the second and third core business candidates (Nuri Match and Meta Jutaku Tenjijo) will pressure profits (full-year operating profit forecast for FY2026 ending September 2026 is ¥290 million, down 42.4% year on year)
• Risk of goodwill and integration costs arising from the acquisition of Shinei Co., Ltd. (¥569 million), and the risk that monetizing the real business will take time
• Risk of reduced net assets (¥1,486 million, equity ratio of 44.9%) and diminished financial flexibility due to treasury stock acquisitions (¥322 million during the first half)
• Impact of fluctuations in the real estate market on the number of inquiries from end users and the advertising investment appetite of client companies
• Risk of service outages due to system failures, cyberattacks, etc. (dependence on internet-based service provision)
• Risk of constraints on business expansion if the company is unable to secure and retain talented personnel