Kurashiru Inc (299A) Q4 2025 earnings summary

Executive summary

• Net sales rose 32.4% year-over-year to JPY 13,101MM, driven by a 421.7% surge in the Shopping (Promotion) business and increased user engagement in the Kurashiru Rewards app, both exceeding company forecasts.

• Non-GAAP operating profit increased 12.9% to JPY 2,817MM, with ordinary profit up 12.1% to JPY 2,607MM and net profit up 14.1% to JPY 1,692MM.

• The company is transitioning from an advertising income model to performance-based and recurring income models.

• Kurashiru Rewards users increased by 0.23MM MAU in Q4, reaching 2.23MM MAU.

• Shopping business is expected to continue driving significant growth in the coming fiscal year.

Financial highlights

• FY2024 net sales: JPY 13,101MM (+32.4% YoY); Non-GAAP OP: JPY 2,817MM (+12.9% YoY); profit: JPY 1,691MM (+14.1% YoY).

• Gross profit increased to JPY 6,495MM from JPY 5,391MM YoY; gross profit margin declined to 49.6% from 54.5%.

• Q4 net sales up 31.7% YoY; Q4 Non-GAAP OP down 3.5% YoY due to increased advertising and new business tax.

• Cash and deposits at year-end: JPY 8,888MM.

• Basic earnings per share rose to JPY 40.94 from JPY 35.89; diluted EPS was JPY 37.90.

Outlook and guidance

• FY2025 forecast: net sales JPY 17,140MM (+30.8% YoY), Non-GAAP OP JPY 3,529MM (+25.3% YoY), profit JPY 2,295MM (+35.7% YoY).

• Non-GAAP OP margin expected at 20.6% for FY2025; Non-GAAP basic EPS projected at JPY 59.13.

• Growth to be led by Shopping (Promotion) domain, with continued investments in platform and user acquisition.

• 2H FY2025 expected to see higher sales and profit due to concentrated sales promotion demand.