Sunwels (9229) Q3 2026 earnings summary

Executive summary

• Opened 3 new PD House facilities in Q3, reaching 55 in operation, with 13 new facilities planned for FY March 2026.

• Net sales for the nine months ended December 31, 2025, rose 2.2% year-over-year to ¥20,734 million, but the period saw an operating loss of ¥1,192 million and a net loss of ¥2,055 million, reflecting a significant decline in profitability due to initial costs from new facility openings and costs related to compliance and operational restructuring.

• Focused on specialized care for Parkinson's disease, aiming to address societal healthcare challenges and build a sustainable society.

• Continued expansion in Kanto and Kansai regions, with occupancy rates for existing facilities stable at 86% and new facilities improving to 39%.

• Extraordinary losses included special investigation costs and provisions following compliance issues, impacting results.

Financial highlights

• Q3 sales were ¥7,327 million, slightly below forecast but up 2.2% year-over-year.

• EBITDA for the nine months was ¥181 million, down 93.4% year-over-year.

• Operating income for Q3 was ¥198 million; quarterly net income was ¥538 million.

• Gross profit dropped to ¥1,899 million from ¥4,538 million year-over-year, with gross margin compression due to higher costs.

• Full-year sales forecast revised to ¥28,844 million, with EBITDA expected at ¥893 million.

Outlook and guidance

• Full-year forecast for FY2026 remains unchanged: net sales of ¥28,844 million (up 8.9%), operating loss of ¥1,039 million, net loss of ¥2,281 million, and EPS of ¥(70.35).

• Sales are expected to continue rising with new facility openings; focus remains on improving occupancy and achieving profitability.

• The company plans to open 13 new facilities nationwide in FY2026, expecting initial costs to weigh on short-term profitability but aiming for future profit contributions.

• Company aims to further strengthen direct sales, advertising, and customer attraction initiatives.