Laxus Technologies (288A) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY03/2026 were 565.2 million JPY, down 13% year-over-year due to challenges in acquiring subscription contracts.

• Operating profit dropped to 46.5 million JPY, a significant year-over-year decrease, mainly from lower sales and higher SG&A expenses.

• Strategic focus shifted to improving profitability per bag, expanding business tie-ups, and launching new marketing channels including taxi, subway, and digital ads.

• Enhanced product lineup and app personalization increased average customer spend to 9,039 JPY (+0.5% YoY).

• Contract count decreased by 2,409 from the previous fiscal year-end, totaling 17,048 at quarter-end.

Financial highlights

• Net sales: 565.2 million JPY (down from 649 million JPY YoY, 87.0%).

• Gross profit: 420 million JPY (down from 512 million JPY YoY, 82.0%), gross margin 74.3%.

• Operating profit: 46.5 million JPY (down from 189 million JPY YoY, 24.6%).

• Net profit: 39.8 million JPY (down from 169 million JPY YoY, 23.5%).

• SG&A expenses increased by 50 million JPY, mainly due to higher advertising and shareholder meeting costs.

Outlook and guidance

• FY03/2026 net sales forecasted at 3,077 million JPY, up 20% year-over-year.

• Operating profit expected to decline 24% to 448 million JPY due to upfront growth investments.

• Full-year guidance remains unchanged, with significant profit declines expected.

• Emphasis on increasing ad spend (+45% YoY), expanding ShaaS, and introducing shareholder benefit schemes.

• Forecasts subject to risks and uncertainties; actual results may differ.