Euglena (2931) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 sales rose 11% year-over-year to ¥13,197 million, led by Healthcare business growth.

• Adjusted EBITDA increased 18% YoY to ¥1,822 million; operating profit up 35% YoY to ¥837 million.

• Net loss narrowed sharply YoY, with net income at -¥32 million versus -¥507 million last year.

• Healthcare B2C subscribers exceeded 710,000, with strong growth in child-rearing nutrition products.

• Ordinary profit rose to ¥782 million, up 79.3% YoY.

Financial highlights

• Sales: ¥13,197 million (+11% YoY); Healthcare sales: ¥12,189 million (+12% YoY).

• Adjusted EBITDA: ¥1,822 million (+18% YoY); Operating profit: ¥837 million (+35% YoY).

• Gross profit for Q1 2026 was ¥8,992 million, up from ¥8,335 million in Q1 2025.

• Comprehensive income attributable to owners of parent improved to ¥140 million from a loss of ¥924 million YoY.

• Equity-to-asset ratio improved to 46.4% from 42.7% at the previous year-end.

Outlook and guidance

• Progress is slightly ahead of the annual earnings forecast, but full-year guidance remains unchanged due to planned ad spend expansion and Middle East geopolitical uncertainty.

• Fiscal year 2026 net sales forecast at ¥52,000 million, up 3.2% YoY; operating profit projected at ¥3,200 million.

• No revisions to previously announced earnings or dividend forecasts.

• Continued focus on achieving net income profitability for the full year.