Summary
SQUEEZE inc. reported 1H FY12/26 Revenue of JPY 3,597M and Recurring Profit of JPY 458M. That puts Recurring Profit at 65.5% of the full-year plan (Revenue JPY 7,034M; Recurring Profit JPY 700M). Management says cumulative 2Q progress is tracking ahead of guidance, at 51.1% for Revenue and 61.0% for Operating Income. The focus at 3Q will be cumulative progress against the full-year plan, which remains unchanged since the IPO. Full-support facilities rose by four from the prior fiscal year-end to 44. "Minn Hakata Station East," which opened on September 1, will contribute partially in 3Q. "Minn Shinagawa East," slated to open in November, will not be reflected until 4Q or later. We will also watch for a reversal of non-operating items that lifted 1H Recurring Profit, namely a JPY 37M FX gain and JPY 19M in IPO-related expenses. Finally, we want the 3Q disclosure to show how the expanding partnership network, including the capital and business alliance with Hulic, is feeding through to the facility pipeline.
Key Points for Next Quarter
| Key Points & Focus | Implications |
|---|---|
Full-Year Plan ProgressCumulative 3Q Revenue and Recurring Profit progress vs. full-year plan | Recurring Profit stood at 65.5% of plan at 1H (our estimate). We will check cumulative 3Q progress against the full-year plan. |
Facility ExpansionNet increase in full-support facilities vs. prior fiscal year-end | 44 facilities at 1H-end (+4 vs. prior fiscal year-end). "Minn Hakata Station East," opened September 1, adds to 3Q. "Minn Shinagawa East" is slated to open in November and will contribute from 4Q onward. The two should be assessed separately. |
ProfitabilityQuarterly trends in Gross Profit Margin and SG&A ratio | 1H Gross Profit Margin was 49.4% and Operating Income Margin 12.0%. We will assess the impact of launch costs at newly opened facilities on 3Q profitability, in terms of both profit and facility count. |
Non-Operating and Extraordinary ItemsBreakdown of non-operating income/expenses and Net Income progress | In 1H, a JPY 37M FX gain and JPY 19M in interest income lifted Recurring Profit, offset by JPY 19M in IPO-related expenses and JPY 2M in share issuance costs. We will check progress and composition against the full-year Net Income plan of JPY 513M (-16.7% YoY). |
Partnerships/PipelineProgress on development projects tied to capital and business alliances, and contribution from three consolidated subsidiaries | For projects with Hulic, RS Investment Management and Daiichi Realtor, opening dates determine when earnings are recognized. Another focus is how launch costs at the three newly consolidated companies show up in 3Q P&L. |
Full-Support PipelinePipeline build and its likelihood of realization | The pipeline is a key leading indicator of future earnings. The company has disclosed a full-support facility pipeline of 1,600 rooms by end-December 2026 and 2,500 rooms by end-December 2027, with no revisions in 1Q or 2Q. We will check for any change in the 3Q disclosure. |
Key Issues from Previous Results (FY12/26 2Q Results)
SQUEEZE inc. listed on the TSE Growth Market on April 22, 2026. It operates a single smart hotel segment built on its cloud-based lodging operations system, "suitebook." In 1H, the company posted Revenue of JPY 3,597M, Operating Income of JPY 430M and Recurring Profit of JPY 458M. No YoY comparison is disclosed, as interim consolidated financial statements were not prepared for the prior-year interim period. Recurring Profit progress against the full-year plan reached 65.5% (our estimate), raising the question of how conservative the 2H plan is. Beyond the twin drivers of facility expansion and technology support, the key item to verify at 3Q is pipeline progress, including the series of partnership deals announced after the IPO.
1. Progress Against the Full-Year Plan and Validity of 2H Assumptions
- Previous Period: 1H Revenue of JPY 3,597M, Operating Income of JPY 430M, Recurring Profit of JPY 458M, and interim Net Income Attributable to Owners of Parent Company of JPY 321M. The full-year plan (Revenue JPY 7,034M, Operating Income JPY 705M, Recurring Profit JPY 700M, Net Income JPY 513M) is unchanged since the IPO.
- This Quarter Check: Management says cumulative 2Q progress is tracking ahead of guidance, at 51.1% for Revenue and 61.0% for Operating Income. We will check where cumulative 3Q results stand against the full-year plan, which is unchanged since the IPO.
- Key Metrics: Cumulative 3Q Recurring Profit progress rate (65.5% at 1H, our estimate), Revenue progress rate (51.1% at 1H, our estimate), and whether guidance is revised.
2. Pace of Full-Support Facility Expansion and Timing of New Opening Contributions
- Previous Period: In 1H, the company opened three facilities: "Minn Oku-Asakusa," "Minn Sapporo Odori Nishi 14" and "Minn Namba Nipponbashi." Full-support facilities rose by four from the prior fiscal year-end to 44.
- This Quarter Check: "Minn Hakata Station East," opened September 1, contributes partially in 3Q (July–September). "Minn Shinagawa East," slated to open in November 2026, contributes from 4Q onward. The two should be evaluated separately.
- Key Metrics: Full-support facility count at 3Q-end (44 at 1H-end), Revenue for the period, and the regional mix of opened facilities.
3. Profitability as Measured by Gross Profit Margin and SG&A Ratio
- Previous Period: 1H Gross Profit of JPY 1,778M (Gross Profit Margin 49.4%), SG&A of JPY 1,348M (37.5% of Revenue, our estimate), and Operating Income Margin of 12.0%. On a quarterly basis, 1Q Operating Income Margin was 12.3%, versus 11.7% for 2Q standalone (our estimate).
- This Quarter Check: How ramp-up costs at newly opened facilities and post-IPO spending to strengthen governance and controls feed into 3Q Gross Profit Margin and SG&A ratio.
- Key Metrics: Cumulative 3Q Gross Profit Margin (49.4% at 1H), SG&A ratio (37.5% at 1H), and the quarterly trend in Operating Income.
4. Non-Operating/Extraordinary Items and the Net Income Plan
- Previous Period: Non-operating income of JPY 60M included a JPY 37M FX gain and JPY 19M in interest income. Non-operating expenses of JPY 32M comprised JPY 10M in interest expense, JPY 19M in IPO-related expenses and JPY 2M in share issuance costs. The company booked a JPY 4M valuation loss on investment securities as an extraordinary loss, and income taxes totaled JPY 131M.
- This Quarter Check: We will check cumulative 3Q progress against the full-year Net Income plan of JPY 513M (-16.7% YoY), along with the breakdown of extraordinary items and income taxes. We will also review the impact of non-operating items such as FX gains and IPO-related expenses.
- Key Metrics: Cumulative 3Q progress rates for Recurring Profit and quarterly Net Income Attributable to Owners of Parent Company (65.5% and 62.6% respectively at 1H, our estimates), and the breakdown of non-operating income.
5. Monetization Timing of Growth Investments, Including Partnerships and Overseas Subsidiaries
- Previous Period: In 1H, the company established three new companies and added them to the scope of consolidation: Siguiji Smart Hospitality Co., Ltd. (Taiwan), SQUEEZE Next Partners, and SQUEEZE Smart Hospitality Thailand Co., Ltd. On the same day as its earnings release, the company announced a comprehensive business alliance with RS Investment Management.
- This Quarter Check: Whether the three newly consolidated companies are still at the stage where launch costs flow through SG&A, or have begun contributing to Revenue. Because partnership projects hit earnings in different periods depending on opening dates, we will scrutinize how progress is described at 3Q.
- Key Metrics: Cumulative 3Q SG&A (JPY 1,348M at 1H), equity-method investment income (JPY 0M at 1H), and trends in foreign currency translation adjustments.
Key Timely Disclosures This Period
- 2026/09/18Notice Regarding Conclusion of Capital and Business Alliance Agreement with Hulic Co., Ltd. - A framework to deploy the "full-support" model at properties owned and developed by Hulic. The first joint project is a hotel conversion of a Ginza office building. Its opening date will determine when earnings are recognized, so the impact on 3Q P&L is likely limited. We will track it as a measure of pipeline expansion.
- 2026/09/18Notice Regarding Change in Major Shareholder (Planned) - The change in shareholder composition stems from the capital and business alliance. It bears on supply-demand dynamics for the stock and on the stability of the business partnership.
- 2026/09/01Opening of "Minn Hakata Station East" (45 rooms) - The opening falls within 3Q and will partially contribute to July–September Revenue and facility count. It is also notable as an expansion of the company's operating base in Kyushu.
Previous Quarter Results (FY12/26 2Q Actual)
SQUEEZE inc. operates a single smart hotel segment. It developed its own cloud-based lodging operations system, "suitebook," and offers both technology support and a "full-support" model covering hotel planning, system provision and operations end to end. The company listed on the TSE Growth Market on April 22, 2026. Proceeds from the public offering and related transactions lifted its Equity Ratio from 34.4% at the prior fiscal year-end to 44.7%. In 1H, three openings ("Minn Oku-Asakusa," "Minn Sapporo Odori Nishi 14" and "Minn Namba Nipponbashi") brought full-support facilities to 44. Technology support also grew, helped by the launch of "suitebook Calls" and an AI pricing optimization feature. Full-year guidance is unchanged from the figures announced at the IPO.
| Item | Amount | YoY | vs. Company Plan | Remarks |
|---|---|---|---|---|
| Revenue | JPY 3,597M | - | - | Expansion to 44 full-support facilities and growth in technology support |
| Operating Income | JPY 430M | - | - | Gross Profit Margin 49.4%; SG&A JPY 1,348M |
| Recurring Profit | JPY 458M | - | - | FX gain JPY 37M, interest income JPY 19M, IPO-related expenses -JPY 19M |
| Interim Net Income Attributable to Owners of Parent Company | JPY 321M | - | - | Valuation loss on investment securities JPY 4M; income taxes JPY 131M |
| EPS | JPY 103.63 | - | - | Diluted EPS JPY 92.87; average shares outstanding during the period 3,098,282 |
(Note) No YoY comparison is shown, as interim consolidated financial statements were not prepared for the prior-year interim period. The company does not disclose an interim plan, so "vs. Company Plan" is shown as "-".
Guidance Achievement Rate vs. Full-Year Plan (Recurring Profit Basis): 65.5% (prior year: -, our estimate)
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