giftee Inc.

Business Details

Building an eGift market ecosystem centered on four services: 'giftee' for individuals, 'giftee for Business' for corporations, the SaaS platform 'eGift System' for eGift-issuing companies, and 'Regional Currency Service' for local governments. In addition to the domestic market, the company is also pursuing geographic expansion into the Middle East and Southeast Asia. In Q1 FY2026 (ending December 2026), revenue was ¥3,722 million (up 0.8% year on year), maintaining revenue growth, but operating profit declined to ¥802 million (down 22.1% year on year) due to an increase in SG&A expenses.

Recent Overview

Revenue increased slightly, but operating profit fell 22% due to higher SG&A expenses; full-year forecast unchanged

In Q1 FY2026 (ending December 2026), revenue increased slightly to ¥3,722 million (up 0.8% year on year). Cost of sales improved to ¥894 million (down 3.4% year on year), improving the gross profit margin, but SG&A expenses expanded to ¥2,025 million (up 16.6% year on year) due to increases in personnel expenses and server costs, limiting operating profit to ¥802 million (down 22.1% year on year). Below the operating line, an equity-method investment loss of ¥89 million and interest expenses of ¥53 million weighed on results, bringing ordinary profit to ¥654 million (down 32.9% year on year). The number of DPs and projects for giftee for Business set new record highs, and business expansion continued. The full-year earnings forecast (revenue of ¥16,949 million, operating profit of ¥3,484 million) remains unchanged.

Key Products

Growth Drivers

• Expanding demand for corporate marketing and local government subsidy/support payment distribution in 'giftee for Business' (number of DPs reached a record 1,464 companies, and number of projects reached a record 5,372)
• Increase in Regional Currency Service revenue driven by local governments' demand for regional currency benefit distribution utilizing programs such as the 'Emergency Local Revitalization Grant for Priority Support Against Price Increases'
• Expanding adoption of 'eGift System' into a wide range of business categories beyond food & beverage and retail (308 CPs, up 36 companies year on year)
• Steady growth in the number of members of 'giftee' for individuals (2.57 million, up 190 thousand year on year)
• Incorporation of Middle East and overseas revenue and geographic diversification through YouGotaGift.com Ltd. and other consolidated subsidiaries

Risks

• Risk of revenue fluctuation due to the loss of spot projects (such as digitalization of premium gift certificates) in the Regional Currency Service
• Risk of profit pressure from increased SG&A expenses (up 16.6% year on year), including personnel and server costs, associated with business expansion
• Expansion of financial costs, including equity-method investment losses (¥89 million in Q1 FY2026, ending December 2026) and interest expenses (¥53 million)
• Risk of valuation losses or impairment on investment securities associated with M&A activities
• Costs associated with organizational and governance restructuring and PMI risk associated with the transition to a holding company structure via sole share transfer
• Relatively low financial leverage, with an equity ratio of 18.6% (short-term borrowings of ¥6,595 million and long-term borrowings of ¥6,107 million)