LY (4689) Q3 2026 earnings summary

Executive summary

• Revenue and profit excluding ASKUL achieved double-digit year-on-year growth, despite a system outage at ASKUL due to a ransomware attack impacting consolidated results.

• Underlying business performance remained solid, with strong contributions from the Strategic segment and company-wide cost reductions.

• Revenue for the nine months ended December 31, 2025, reached ¥1,495.3 billion, up 4.7% year-over-year, marking a record high for the period.

• Adjusted EBITDA rose 3.8% year-over-year to ¥377.3 billion, also a record for the cumulative third quarter.

• Full-year revenue guidance was revised downward due to the ASKUL outage, but adjusted EBITDA and EPS guidance remain unchanged.

Financial highlights

• Consolidated revenue declined 0.7% year-on-year to JPY499.9B, but excluding ASKUL, revenue rose 15.7% to JPY442.6B and adjusted EBITDA increased 11.2% to JPY132.8B.

• Adjusted EBITDA was JPY126.0B, down 2.3% year-on-year; adjusted EPS was JPY7.30, down 1.5% year-on-year; excluding ASKUL, adjusted EPS rose 8.7% to JPY7.57.

• Commerce advertising revenue grew 20.1% year-on-year, and company-wide ad revenue increased 3%.

• E-commerce transaction value rose 6.8% year-over-year to ¥3,492.3 billion, with reuse business showing double-digit growth.

• Net income attributable to owners of the parent grew 43.6% year-over-year to ¥183.3 billion.

Outlook and guidance

• FY2025 revenue forecast revised to ¥2,000.0 billion (down from ¥2,100.0 billion) due to ASKUL outage; adjusted EBITDA guidance unchanged at ¥500.0–510.0 billion; adjusted EPS at ¥25.9–26.9.

• For FY2026, targeting a 10%-15% increase in adjusted EBITDA (JPY 550-575 billion), driven by business growth and cost reductions.

• Cost control measures expected to offset revenue decline outside ASKUL.

• Strategic segment growth and cost reductions expected to support future performance.