GENDA (9166) Q2 2027 earnings summary

Executive summary

• Revenue for the six months ended July 31, 2026, rose 40.1% year-over-year to ¥103,664 million, driven by M&A activity and organic growth in core businesses.

• Adjusted EBITDA increased 21.1% year-over-year to ¥11,206 million, while Adjusted Net Income was nearly flat at ¥2,728 million (up 0.1%).

• Net income attributable to owners of the parent was a loss of ¥322 million, impacted by one-time M&A-related expenses.

• Domestic amusement and karaoke segments exceeded targets, supported by exclusive prizes, app adoption, and digital transformation initiatives.

• Strategic alliances with SBI Holdings, Sanrio, and CyberAgent were announced, alongside an expansion of shareholder benefit points.

Financial highlights

• Gross profit increased to ¥21,554 million from ¥17,289 million year-over-year.

• Operating income declined 30.4% year-over-year to ¥2,252 million.

• Ordinary income dropped 53.8% to ¥1,110 million.

• Adjusted EPS for the period was ¥14.84; GAAP net income turned negative at -¥322 million due to M&A expenses.

• M&A-related expenses totaled ¥0.39bn (EBITDA impact) and ¥0.5bn (net income impact) for 2Q YTD.

Outlook and guidance

• Full-year revenue forecast is ¥215,000 million (up 25.8%), Adjusted EBITDA ¥30,000 million (up 31.3%), and Adjusted Net Income ¥10,600 million (up 15.7%).

• Dividend forecast for FY ending January 2027 is ¥8.00 per share, double the prior year.

• North America expected to drive profit growth through cost reforms, new store openings, and IP prize launches from 3Q onward.

• No changes to previously announced full-year guidance.