GENDA (9166) Q1 2027 earnings summary

Executive summary

• Adjusted EBITDA reached ¥4.61bn, up 8.0% year-over-year and exceeding the 1Q target by 3.9%; adjusted net income was ¥0.73bn, 12.6% above target but down 46.5% YoY.

• Revenue rose 45.0% year-over-year to ¥49.7bn for the three months ended April 30, 2026, driven by M&A and segment expansion.

• Consolidated results met targets as strong domestic amusement sales offset North American underperformance.

• Net income attributable to owners was a loss of ¥752mn, compared to a profit of ¥223mn in the prior year, reflecting one-off M&A expenses and IFRS transition.

• Comprehensive income improved to ¥1,469mn from a loss of ¥673mn YoY, mainly due to foreign currency translation gains.

Financial highlights

• Gross profit increased to ¥11,375mn from ¥8,078mn YoY.

• Operating income dropped to ¥288mn from ¥1,390mn YoY.

• Ordinary income was -¥307mn, compared to ¥1,073mn a year earlier; diluted EPS was -¥4.09.

• Same-store sales growth for domestic amusement arcades remained robust, with monthly YoY growth rates consistently above 100%.

• Adjusted EBITDA margin for the quarter was approximately 9.3%.

Outlook and guidance

• Consolidated full-year targets remain unchanged despite North American revenue shortfall; full-year revenue forecast is ¥215.0bn, up 25.8% YoY.

• Adjusted EBITDA is projected at ¥30.0bn (up 31.3%), and adjusted net income at ¥10.6bn (up 14.2%).

• Dividend forecast for FY2027 is ¥8.00 per share.

• North America expects sales growth from increased visit frequency and tapering of one-time integration expenses from 2Q onward.

• Domestic business to accelerate suburban expansion and continue DX initiatives in karaoke.