ENVALITH
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CURVES HOLDINGS Co., Ltd.

7085・Prime Market・Services

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株式会社カーブスホールディングス logo
CURVES HOLDINGS Co., Ltd.7085

Business

Curves Holdings Co., Ltd. is a pure holding company centered on the operation of 'Curves, 30-Minute Health Fitness for Women Only.' Domestically, Curves Japan Co., Ltd. serves as the franchise headquarters, operating a network of 1,996 stores with a membership base of 863,000 members, while Hi-Standard Co., Ltd. operates 75 directly-managed stores. The company has also expanded into 'Men's Curves, 30-Minute No-Reservation Supported Gym' for men (25 stores) and the new business format 'Pinto-Up Body Movement Recovery Center' (37 stores). Overseas, the company owns Curves Europe B.V., which operates 124 stores across 8 European countries, and earns royalty income from countries worldwide through the global franchisor Curves International, Inc. The company's primary customers are health-conscious individuals, mainly middle-aged and older women, and it has built a business model that addresses the societal challenge of extending healthy life expectancy in an ultra-aging society.

Business Model

The core of revenue consists of franchise fees, royalties, advertising cost-sharing, and equipment sales from franchised stores, forming a stock-type model in which revenue expands in line with growth in membership numbers. In addition, merchandise sales for members (subscription delivery), such as protein products, function as a second pillar of revenue, with procurement results reaching ¥8,989 million in FY2025 (ending August 2025). Overseas, the structure involves the accumulation of royalty income from master franchisees and master licensees. Capital expenditure is minimal (¥884 million in FY2025 (ending August 2025)), and the business boasts a strong capacity to generate operating cash flow (¥6,211 million), characteristic of an asset-light business model.

Company Strengths

The company ranked No.1 in the fitness category of the JCSI (Japanese Customer Satisfaction Index) survey by the Service Productivity & Innovation for Growth Council for 11 consecutive years. As a result of improved customer satisfaction, the monthly churn rate has remained at its lowest level ever, and the number of members at the end of FY2025 (ending August 2025) reached a record high of 863 thousand, a net increase of 46 thousand from the previous fiscal year-end.

In FY2025 (ending August 2025), revenue was ¥37,566 million (up 5.9% year on year), operating profit was ¥6,342 million (up 16.2% year on year), and net income attributable to owners of the parent was ¥4,303 million (up 20.6% year on year), all of which were record highs. From FY2021 to FY2025, revenue grew 52% and operating profit grew 291%, reflecting a significant improvement in profitability.

Cash flow from operating activities in FY2025 (ending August 2025) was ¥6,211 million, a substantial increase from ¥5,426 million in the previous fiscal year. Against capital expenditure of ¥884 million, free cash flow reached an extremely high level of ¥5,484 million. Cash and cash equivalents stood at ¥8,383 million, indicating a high degree of financial stability.

ENVALITH's Perspective

The operating margin for the cumulative nine months of Q3 FY2026 (ending August 2026) improved markedly to 19.5% (versus 18.2% in the same period of the prior year). The fact that the April membership fee revision had only a minor impact on the withdrawal rate was a more positive surprise than expected. The full-year earnings forecast (net sales of ¥42,300 million, operating income of ¥7,700 million) remains unchanged, but the cumulative Q3 progress rate stood at a high level of 74.6% for net sales and 79.9% for operating income, suggesting potential for an upward revision depending on Q4 trends.

Men's Curves (37 stores) and Pinto-Up Body Movement Recovery Center (47 stores) opened 12 and 10 new stores respectively during the cumulative nine months of Q3, and are in an expansion phase, but the scale and timing of their profit contribution have not been disclosed. Achieving the medium-term vision of net sales of ¥56,000 million and operating income of ¥10,300 million by 2030 will require these new business formats to grow into profit pillars alongside the core Curves Business. Enhanced disclosure of membership numbers and store-level profitability for each format would help improve the precision of investor assessments.

As an external factor, the period-end USD/JPY translation rate for Q3 was ¥159.88, representing a depreciation of ¥15.07 compared to the end of the previous fiscal year (¥144.81). This resulted in a ¥731 million increase in the yen-denominated value of trademark rights and goodwill related to the acquisition of Curves International. On the other hand, raw materials such as protein appear to be largely procured in US dollars, so continued yen depreciation poses a risk of squeezing the gross margin on merchandise sales. Additionally, a foreign exchange loss of ¥118 million was recorded for the cumulative nine months of Q3, and the impact of exchange rate fluctuations on ordinary income continues to warrant close attention.

Growth Strategy

Aiming for net sales of ¥56,000 million and operating profit of ¥10,300 million by 2030 through diversified expansion of new business formats, membership growth, and strengthening of the European business

Pursuing both new member acquisition through a combination of TV commercials, web marketing, and community-focused marketing, and per-member fee growth through the membership fee revision implemented in April. Membership stood at 890,000 as of end-May 2026, a new record high as of the end of the third quarter, while the monthly attrition rate has been maintained at a low level.

The number of subscribers to Merchandise Sales for Members (Subscription Delivery), centered on protein subscription purchases, reached a new record high as of the end of the third quarter. Improvement in the subscription retention rate also contributed, with merchandise sales maintaining strong growth of 14.8% year-on-year. Initiatives such as the intensive dietary consultation month have contributed to acquiring subscription contracts.

Men's Curves opened 12 new stores during the cumulative third quarter, bringing the total to 37 stores, while Pinto-Up opened 10 new stores, expanding the total to 47 stores. Steady growth in membership at existing stores and membership acquisition exceeding plan at newly opened stores have been confirmed, and the company is working to transition these formats to a full-fledged growth stage.

The European Curves Franchise Business, operating in the UK, Italy, Spain, and five other countries, comprised 126 stores as of the end of March 2026. Membership and sales at existing stores reached record highs, and the company has declared a transition to a store expansion phase. The results of positioning Europe as a priority region and nurturing it since the acquisition of the FC headquarters in 2019 are becoming increasingly evident.

At the board of directors meeting on July 13, 2026, the company resolved to acquire up to 3,000,000 shares of treasury stock, with a total acquisition price of up to ¥3,500,000,000 (acquisition period: July 14, 2026 to September 30, 2026). The projected annual dividend for FY2026 (ending August 2026) is ¥30 per share (ordinary dividend of ¥20 plus a commemorative dividend of ¥10), an increase of ¥13 year-on-year, reinforcing the company's stance on profit distribution.

Last updated: July 17, 2026