CYND (4256) Q1 2027 earnings summary

Executive summary

• Net sales for FY27 Q1 reached ¥692 million, up 15.5% year-over-year, with steady growth in contracted stores and new service adoption such as BeautyPay and BM Smart Mirror.

• EBITDA rose 16.3% year-over-year to ¥158 million, and operating income increased 40.7% year-over-year to ¥78 million, reflecting strong top-line growth despite higher SG&A expenses.

• Profit attributable to owners of parent and comprehensive income for Q1 were ¥44 million, up 75.3% year-over-year.

• Consolidated ARR grew 12.2% year-over-year to ¥2.56 billion, with the number of contracted stores up 13.8% year-over-year to 24,292.

Financial highlights

• Gross profit increased 13.3% year-over-year to ¥524 million, with a gross margin of 75.7%.

• Basic earnings per share for the quarter were ¥7.29, up from ¥4.18 in the prior year.

• ARPU for BeautyMerit was ¥15,448 and for Kanzashi ¥4,208 in Q1.

• Customer churn rate remained low at 0.68%, consistently below 1%.

Outlook and guidance

• FY27 full-year forecast targets net sales of ¥3,001 million (+18.1% YoY), EBITDA of ¥662 million (+1.4% YoY), operating profit of ¥345 million (+4.2% YoY), and profit attributable to owners of parent of ¥188 million (+9.0% YoY).

• Basic earnings per share forecast for the year is ¥30.99.

• Number of contracted stores is expected to reach 26,500 by fiscal year-end.

• Continued investment in marketing and new services is expected to drive revenue growth, though profits may be impacted by these investments.

• No revisions to previously announced earnings forecasts.