Waqoo Inc.
4937・Growth Market・Chemicals
D2C Business
Cosmetics D2C business leveraging digital marketing. Characterized by a recurring revenue model.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (cumulative H1, FY2026 ending March 2026) | ¥376 million | ¥503 million (cumulative H1, FY2025 ended March 2025) | ↓ |
| Segment profit (cumulative H1, FY2026 ending March 2026) | ¥163 million | ¥144 million (cumulative H1, FY2025 ended March 2025) | ↑ |
| Segment profit margin (cumulative H1, FY2026 ending March 2026) | 43.3% | 28.5% (cumulative H1, FY2025 ended March 2025) | ↑ |
| Segment revenue (full year, FY2025 ended March 2025) | ¥953 million | — | — |
| Segment profit (full year, FY2025 ended March 2025) | ¥295 million | — | — |
| Segment revenue (Q1, FY2026 ending March 2026) | ¥201 million | — | — |
Business Details
A segment engaged in the planning, development, and sale of original brand cosmetics utilizing digital marketing. The flagship brand "HADA NATURE" and the medicated carbonated head spa hair growth product "sodatel" are offered through a subscription service model, adopting a stock-type business model that is expected to generate stable cash flow. In the first half of FY2026 (ending March 2026), the business division was redefined as a "cash generation function," shifting operations to restrain new customer acquisition while emphasizing profit maximization from the existing customer base and investment efficiency.
Recent Overview
Revenue declined 25.2% year on year, but profit margin improved significantly to 43.3%.
For the cumulative first half of FY2026 (ending March 2026), segment revenue decreased to ¥376 million (down 25.2% year on year), while segment profit increased to ¥163 million (up 13.4% year on year). In response to rising advertising media costs and changes in consumer behavior, the company restrained new customer acquisition and focused on strengthening cross-selling to existing customers and expanding sales through the mall channel, a high-profitability model. The company also promoted cost reduction by improving the efficiency of customer support operations through the introduction of AI bots, resulting in a substantial improvement in profit margin from 28.5% in the same period of the prior year to 43.3%.
Key Products
Growth Drivers
- Maintaining and improving the repeat purchase rate of loyal customers through enhanced CRM measures
- Improved profitability (higher profit margin) through a strategic shift toward LTV maximization
- Sales expansion through the high-profitability mall channel by focusing resources there
- Efficiency improvement and fixed cost reduction in customer support operations through the introduction of AI bots, among other measures
- Increased average customer spending through enhanced cross-selling to existing customers
- Product planning capability leveraging the accumulation and analysis of customer data (purchase history, inquiries, etc.)
Risks
- Risk of medium- to long-term shrinkage of the customer base due to continued restraint on new customer acquisition
- Risk of slowing new customer acquisition and declining revenue due to rising customer acquisition costs
- Risk of intensifying competition in the cosmetics market and changes in consumer preferences
- Risk of declining subscription retention rates due to rising prices and reduced consumer spending appetite
- Risk of profit pressure from continued increases in advertising media costs
- Channel risk from tightening digital marketing regulations and platform changes
Last updated: December 23, 2025