GENDA (9166) Q4 2025 earnings summary

Executive summary

• Achieved record-high adjusted EBITDA and operating income, with 4Q YoY growth surpassing previous quarters; strong performance even after one-off M&A expenses.

• Revenue doubled year-over-year to ¥111.8bn, driven by aggressive M&A and expansion into karaoke and international markets.

• Major subsidiaries (GIGO, Karaoke BanBan, FUKUYA) posted historical high earnings, demonstrating post-merger synergies.

• Overseas PMI at NEN in the U.S. led to same store sales growth averaging +201%, highlighting global expansion success.

• Number of consolidated subsidiaries increased to 30, with significant acquisitions in the U.S. and Southeast Asia.

Financial highlights

• FY2025/1 revenue doubled YoY to ¥111.8bn; adjusted EBITDA up 87% YoY to ¥15.4bn; adjusted operating income up 66% YoY to ¥9.1bn.

• Adjusted cash EPS rose 19% YoY to ¥81.36, despite increased share count from follow-on offerings.

• M&A-related expenses totaled ¥1.15bn–¥1.37bn for the year, impacting GAAP results but fueling future growth.

• Net income before amortization of goodwill up 31% YoY to ¥5.9bn; net income attributable to shareholders declined 20.9% to ¥3.3bn due to tax normalization.

• Cash and deposits increased to ¥25.6bn; interest-bearing debt rose to ¥52.4bn, maintaining a low net debt/EBITDA ratio of 1.7x.

Outlook and guidance

• FY2026/1 forecast: revenue ¥157.0bn (+40% YoY), EBITDA ¥22.0bn (+54% YoY), net income before amortization of goodwill ¥8.0bn (+71% YoY).

• Guidance assumes zero new M&A; adjusted EBITDA forecast at ¥22.4bn, adjusted net income before amortization of goodwill at ¥8.4bn.

• Under IFRS, OP income forecast at ¥13.5bn (+69% YoY), net income at ¥8.0bn (+142% YoY).

• Continued focus on M&A, new business domains, and international expansion, including tourism-related services.

• EV/EBITDA multiple expected to drop from 18.7x to 11.1x, PER from 40.1x to 27.1x, reflecting rapid earnings growth.