CYND (4256) Q1 2027 earnings summary

Executive summary

• Revenue for Q1 FY2027 was ¥692.9 million, up 15.5% year-over-year, with steady growth in contracted stores and new service rollouts.

• EBITDA rose 16.3% YoY to ¥158.5 million, maintaining a margin of 22.9%, in line with full-year plans.

• Net income for the quarter was ¥44.2 million, up 75.3% YoY, with adjusted net income at ¥113 million.

• Contracted stores increased 13.8% YoY to 24,292, while customer churn remained low at 0.68%.

• Business initiatives included new features for BM Smart Mirror, participation in major industry events, and regional sales office reorganization.

Financial highlights

• Subscription revenue grew 12.4% YoY, supporting overall revenue growth.

• ARR reached ¥2.561 billion, up 12.2% YoY, driven by increases in both BeautyMerit and Kanzashi services.

• Gross profit rose 13.3% YoY to ¥524.8 million, with a gross margin of 75.7%.

• Operating income surged 40.7% YoY to ¥79.0 million, with an operating margin of 11.4%.

• Net assets increased to ¥3,532.6 million, mainly due to retained earnings from net profit.

Outlook and guidance

• Full-year FY2027 revenue is forecast at ¥3,001 million (+18.1% YoY), with EBITDA of ¥662 million (+1.4% YoY), operating income of ¥345 million, net income of ¥188 million, and EPS of ¥30.99.

• Contracted stores are projected to reach 26,500 by year-end.

• Ongoing investments in marketing and new services (e.g., BeautyPay) are expected to impact profit margins.

• No revision to previously announced forecasts.