Space Market, Inc.

Business Details

The company operates a diverse range of services, including the operation of the marketplace "SPACEMARKET," the provision of the public facility reservation management system "Spacepad," planning, development, and operation outsourcing of rental spaces (Total Produce Service), accommodation operation support "SpemaSTAY," and Space M&A Brokerage. It has listed spaces across all 47 prefectures nationwide, building a platform business that supports multi-purpose use including meetings, photo shoots, events, and lodging.

Recent Overview

Revenue increased 34.4% year-on-year to ¥718 million, remaining solid, but operating profit declined 22.4% due to increased costs

In Q1 FY2026 (ending September 2026) (January to March 2026), revenue grew steadily to ¥718 million (up 34.4% year-on-year), while cost of sales increased to ¥183 million (from ¥112 million in the same period of the prior year) and selling, general and administrative expenses increased to ¥472 million (from ¥341 million in the same period of the prior year), causing operating profit to decrease to ¥62 million (down 22.4% year-on-year). Non-operating expenses included interest expense of ¥3 million and a loss on subsidy repayment of ¥3 million, resulting in ordinary profit of ¥58 million (down 26.4% year-on-year). A brand renewal was implemented in January 2026. There has been no change to the full-year earnings forecast (revenue of ¥2,221 million, operating profit of ¥134 million), and the forecast for the 9-month irregular fiscal period is maintained. As a subsequent event, on April 3, 2026, the company issued the 12th series of stock acquisition rights (tax-qualified stock options), totaling 1,300 units (covering 130,000 shares, exercise price of ¥297).

Key Products

Growth Drivers

• Strengthening of network externalities through continued expansion of the number of available spaces (progressing diversification of use cases including meetings, photo shoots, lessons, and lodging)
• Expansion of the Rental Space Total Produce Service (tangible fixed assets increasing due to continued capital investment)
• Strengthening of group synergies by leveraging the operational know-how and use-case development capabilities of group companies (Crouton, Emina, Systeria, etc.)
• Capturing public facility DX demand through progress in municipal adoption of Spacepad
• Diversification of revenue sources through new services such as SpemaSTAY and Space M&A Brokerage
• Structural expansion of the sharing economy market driven by the shift in consumer values from "ownership" to "usage"
• Increased awareness and usage driven by the January 2026 brand renewal ("New standard experiences, one after another.")

Risks

• Declining profit margin due to rising costs (expansion of cost of sales and SG&A expenses): Q1 operating margin declined to 8.7% (from 15.0% in the same period of the prior year)
• Intensifying competition due to increased new entrants (an inherent risk in a growth market)
• Risk of impairment of goodwill (¥405 million) arising from M&A
• Continued financial leverage from long-term borrowings (¥638 million)
• Residual risk related to the provision for losses on trust-type stock options (¥275 million)
• Pressure on cost of sales and SG&A expenses from rising prices and labor costs
• Difficulty in period-over-period comparison and increased complexity in performance evaluation due to the change in fiscal year-end (9-month irregular fiscal period)
• Occurrence of one-time expenses such as loss on subsidy repayment (¥3 million)