GENDA (9166) Q3 2025 earnings summary

Executive summary

• 3Q results showed accelerated year-over-year growth, with adjusted EBITDA up 64% (+¥4.0bn) and adjusted net income before amortization of goodwill up 21% (+¥0.8bn), both outpacing 1Q and 2Q growth rates.

• Revenue for the nine months ended October 31, 2024, doubled year-over-year to ¥77,627 million, with EBITDA up 55.6% and operating income up 30.1%.

• Aggressive M&A activity expanded the number of consolidated subsidiaries to 29, with significant growth in amusement arcades and new business domains.

• All adjusted income metrics increased YoY, and even GAAP actuals (after M&A expenses) exceeded initial plans, prompting an upward revision to FY2026/1 EBITDA forecast to ¥20.0bn.

• Net income attributable to shareholders fell 20.1% year-over-year due to higher corporate taxes and temporary M&A-related expenses.

Financial highlights

• Revenue for 3Q YTD doubled YoY to ¥77.6bn; full-year forecast is ¥110bn (+97% YoY).

• Adjusted EBITDA for 3Q YTD rose 64% YoY to ¥10.1bn; GAAP EBITDA was ¥9.4bn (+56% YoY).

• Net income before amortization of goodwill (adjusted) for 3Q YTD increased 21% YoY to ¥4.3bn.

• Operating income for 3Q YTD was ¥6.1bn (+43% YoY, adjusted basis).

• Cash EPS increased 10% YoY, even before deploying ¥10bn from the follow-on offering for M&A.

Outlook and guidance

• FY2026/1 EBITDA forecast revised upward to ¥20.0bn (+54% YoY), driven by robust organic growth.

• Revenue for FY2026/1 projected at ¥150bn (+36% YoY); net income before amortization of goodwill forecast at ¥5.4bn.

• Full-year revenue forecast: ¥110,000 million (up 97.5% from previous period).

• Further upward revisions are expected upon future M&A announcements in late FY2025/1 and 4Q earnings.

• IFRS application is planned for FY2027/1, expected to improve global comparability and reporting.