GENDA (9166) Q1 2026 earnings summary

Executive summary

• Revenue rose 38.8% year-over-year to ¥34.3bn, driven by strong amusement arcades, karaoke, and aggressive M&A in Japan and the U.S.

• Adjusted EBITDA before one-off M&A expenses increased 29.2% year-over-year to ¥4.27bn, exceeding targets.

• Net income before amortization of goodwill was ¥1.33bn (+13.1% YoY), but fell 13.1% YoY before M&A expenses and 32.5% after, reflecting higher acquisition costs.

• Seven M&A deals were executed, including two roll-up M&As in North America, expanding the group to 34 subsidiaries and new fields like tourism.

• GENDA received a BBB+ rating from Japan Credit Rating Agency, supporting future financing and M&A activity.

Financial highlights

• Revenue for 1Q FY2026/1 was ¥34.3bn, up 38% year-over-year and 0.7% above target.

• Adjusted EBITDA reached ¥4.27bn (+29% YoY), and adjusted EBITA was ¥2.52bn (+8.6% YoY), both exceeding targets.

• Net income attributable to shareholders was ¥223 million, down 81.7% year-over-year.

• Gross profit increased to ¥8,078 million from ¥5,286 million year-over-year.

• Total assets grew to ¥131,908 million, up ¥16,943 million from the previous fiscal year-end.

Outlook and guidance

• FY2027/1 forecast was revised upward: revenue ¥185.0bn, EBITDA ¥25.7bn, and net income before amortization of goodwill ¥9.9bn, assuming no further M&A.

• Full-year revenue forecast is ¥157,000 million, up 40.4% from the previous period.

• No change to previously disclosed full-year guidance due to timing of P/L consolidation and one-off M&A expenses.

• Business is seasonally weighted toward the second half, with most YoY growth expected later in the year.

• Operating income is projected at ¥10,500 million (+32.6%), net income at ¥5,000 million (+53.7%), and EBITDA at ¥22,000 million (+54.9%).