GENDA (9166) Q4 2026 earnings summary

Executive summary

• Achieved FY2026/1 targets on all key adjusted indicators, excluding one-time M&A-related expenses, with strong organic and inorganic growth.

• Revenue rose 52.7% year-over-year to ¥170,787 million, driven by aggressive M&A and expansion into new business domains and geographies.

• Adjusted EBITDA reached ¥22.8bn (+48.6% YoY), and adjusted net income was ¥9.4bn (+55.6% YoY), both exceeding initial forecasts.

• The group added 15 consolidated subsidiaries, reaching 45 in total, and executed 26 M&A deals during the year.

• Significant global expansion included acquisitions in North America and the UK, and new business lines in tourism and lifestyle.

Financial highlights

• Revenue for FY2026/1 was ¥170.8bn (+52.7% YoY), adjusted EBITDA ¥22.8bn (+48.6% YoY), and adjusted net income ¥9.4bn (+55.6% YoY).

• GAAP net income declined to ¥3.7bn due to M&A-related expenses, but adjusted metrics show strong underlying growth.

• Operating income declined 6.1% YoY to ¥7,425 million, and ordinary income fell 17.5% to ¥5,979 million, impacted by increased M&A-related expenses.

• Total assets nearly doubled to ¥222,214 million, and net assets increased to ¥65,181 million.

• Cash and cash equivalents at year-end were ¥32,209 million, up ¥6,675 million from the prior year.

Outlook and guidance

• FY2027/1 adjusted EBITDA forecast revised upward to ¥30.0bn (+¥8.0bn YoY), with revenue guidance at ¥215.0bn.

• IFRS adoption from FY2027/1 4Q expected to increase reported EBITDA by c.¥15.0bn and net income by c.¥5.0bn.

• Dividend policy targets annual increases, with a starting yield of 1.1% and additional shareholder benefits.

• M&A strategy revised to focus on core domains and stricter selection, with no public equity offerings for M&A standby funds for at least three years.

• Continued focus on M&A and operational enhancements expected to drive growth in both core and new business segments.