Retty Inc.

Business Details

Under the vision of "Creating new dining experiences to make life happier," the company operates the real-name gourmet platform "Retty." It offers two services: a subscription-type sales promotion support service for restaurants (Restaurant Support Services) and an advertising and data utilization service (Integrated Solutions). By accumulating store data for over 800,000 restaurants, real-name reviews, and user logs, the company runs a platform business that both provides users with optimized restaurant information and supports restaurants in attracting customers.

Recent Overview

Revenue decreased 6.2% year on year, but operating profit increased; due to an extraordinary loss (impairment loss of ¥7 million), interim net income fell 47.2%

Revenue for the interim period of FY2026 (ending September 2026) (October 2025 to March 2026) was ¥794 million (down 6.2% year on year). The number of member restaurants decreased from 7,435 to 6,892, affected by a decline in new sign-ups through the agency channel and a change in the strategy for acquiring full volume-based plan customers. On the other hand, reductions in cost of sales and SG&A expenses (down 10.0% and 4.8% year on year, respectively) led to an increase in operating profit to ¥20 million (up 9.2% year on year). Due to the recording of an impairment loss of ¥7 million as an extraordinary loss, interim net income was limited to ¥7 million (down 47.2% year on year). As a subsequent event, the company sold one unlisted security on April 2, 2026, and plans to record a gain on sale of investment securities of ¥92 million as an extraordinary gain in the third quarter. Incorporating this, the full-year net income forecast is ¥124 million (up 956.7% year on year). While material events related to going concern assumptions continue to exist, the company is working to stabilize its financial base through the conclusion of a commitment line agreement (borrowing limit of ¥300 million), execution of a long-term loan of ¥80 million, and the sale of securities.

Key Products

Growth Drivers

• Continued increase in Restaurant Support Services revenue through strengthening of the direct sales channel (signs of increasing new sign-ups through the direct sales channel)
• Near completion of the withdrawal from specific agencies with high cancellation rates (the revenue share of such agencies in Restaurant Support Services has fallen to approximately 0.5%)
• Continued cost control (slight year-on-year decrease in personnel expenses, initiation of workload reduction through AI implementation and business process streamlining)
• Expansion of orders from national clients for Integrated Solutions (formerly Advertising Content)
• Significant improvement in full-year net income due to the recording of a gain on sale of investment securities (¥92 million) in the third quarter
• Stabilization of the financial base through a commitment line agreement (¥300 million) and long-term borrowing (¥80 million)

Risks

• Continued decline in the number of member restaurants (decreased from 7,435 to 6,892; fixed plans also decreased from 5,045 to 4,840)
• Suppression of ARPU growth (temporary increase in low-priced corporate plans and shift to lower-priced plans upon contract renewal)
• Existence of material events related to going concern assumptions (the company judges that the operating profit level is still insufficient)
• Decline in the number of new sign-ups through the agency channel
• Risk of breaching financial covenants under the commitment line agreement (maintaining net assets at 85% or more of the same period of the previous year and maintaining positive ordinary income)
• Risk of cancellations due to deteriorating business conditions for restaurants caused by rising raw material prices and labor shortages
• Increase in long-term borrowings due for repayment within one year to ¥371 million, resulting in a significant increase in current liabilities (from ¥264 million to ¥536 million)