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 the subsidiary 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 was JPY499.9B, down 0.7% YoY; excluding ASKUL, revenue rose 15.7% YoY to JPY442.6B.

• Adjusted EBITDA was JPY126.0B, down 2.3% YoY; excluding ASKUL, adjusted EBITDA increased 11.2% YoY to JPY132.8B.

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

• E-commerce transaction value up 6.8% year-on-year to ¥3,492.3 billion.

• Adjusted EPS expected to land within initial guidance range.

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.

• Fiscal 2026 aims for 10%-15% adjusted EBITDA growth over fiscal 2025, targeting JPY 550-575 billion.

• Media and commerce segments each targeting JPY 10 billion profit increase, strategic segment targeting JPY 20 billion, and JPY 15 billion in cost reductions.

• MINI Apps and SaaS expected to contribute single-digit billion yen in revenue next fiscal year, with significant growth anticipated in 2027-2028.

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