Fitcrew Inc.

Business Details

Under the corporate philosophy of "Brightening society through fitness," the company is advancing brand integration of its personal training gyms "UNDEUX SUPERBODY" and "UNDEUX SUPERBODY LIFE," while expanding its business domain by acquiring the Group Lesson-Style Pilates Studios (4 brands, 11 locations) business from Ascenders Inc. in May 2026. The company's primary customers are women with high beauty and health consciousness, and it has built a recurring revenue model combining short-term intensive courses with monthly-fee aftercare courses. As of the end of the first half of FY2026 (ending March 2026)... [Note: fiscal year end is November per data, retained as stated] the total number of stores stood at 69.

Recent Overview

Expanded to a 69-store structure through the Pilates business acquisition, but fell into an interim operating loss due to increased costs

In May 2026, the company acquired the Group Lesson-Style Pilates Studios business (4 brands, 11 locations) from Ascenders Inc. at an acquisition cost of ¥325 million (including goodwill of ¥248 million), bringing the total number of stores at the end of the interim period to 69, an increase of 16 stores from the end of the prior fiscal year. Revenue increased 13.9% year-on-year to ¥1,536 million, securing revenue growth; however, gross profit margin declined (from 37.4% in the same period prior year to 31.8% in the current period) due to increased personnel expenses, advertising expenses, and store operating costs associated with new store openings and the increase in acquired stores, resulting in an operating loss of ¥12 million. Listing-related expenses of ¥9 million also contributed to an ordinary loss of ¥22 million. Note that interim net income of ¥7 million was secured due to the recognition of deferred tax assets (income tax adjustment of △¥34 million). As a subsequent event, on July 15, 2026, the company entered into a basic agreement with VALX Inc. regarding the acquisition of the "VALX GYM" business and a capital and business alliance, aiming for further business expansion.

Key Products

Growth Drivers

• Continued expansion of store count through new store openings (from 53 stores at the end of the prior fiscal year to 69 stores at the end of the interim period, including 11 stores from the Pilates business acquisition)
• Expansion of the recurring revenue base and broadening of the business domain through integration of Ascenders Inc.'s Pilates business (4 brands, 11 locations)
• Entry into the 24-hour, unisex fitness gym business and expansion of the customer base through the VALX GYM business acquisition and capital and business alliance (basic agreement already concluded)
• Expansion of the recurring revenue ratio through the monthly-fee aftercare course and UNDEUX SUPERBODY LIFE
• Improved operational efficiency and unified customer experience through UNDEUX SUPERBODY brand integration
• Acquisition of new light-user customers through store openings in suburban and regional cities

Risks

• Decline in profit margin due to increased personnel expenses, advertising expenses, and store operating costs associated with new store openings and business acquisitions (fell into an interim operating loss)
• Increase in goodwill and acquisition-related expenses associated with the Pilates business (goodwill of ¥248 million, amortized over 10 years) and the future VALX GYM business acquisition
• Increased costs for securing and training personnel (expanding demand for trainers and staff associated with multi-brand, multi-store expansion)
• Stable procurement of capital expenditure funds associated with new store openings and business acquisitions (short-term borrowings of ¥150 million and long-term borrowings of ¥200 million procured during the interim period)
• Intensifying competition due to the rapid expansion of low-price gyms in the fitness industry, and heightened consumer discernment
• Pressure on profits from one-time expenses such as listing-related costs (full-year operating profit forecast down 37.1% year-on-year)
• Risk of operational complexity associated with integrating and operating multiple brands and business formats