U-NEXT HOLDINGS (9418) Q1 2026 earnings summary

Executive summary

• Achieved record-high first quarter sales and operating income, surpassing 25% of full-year forecasts, with net sales rising 13.9% year-over-year to ¥104,673 million and operating profit up 6.2% to ¥8,766 million.

• Subscriber and contract growth across all business segments strengthened recurring income base, with U-NEXT surpassing 5 million paying subscribers.

• Completed ¥20 billion bond issue to enhance financial leverage and fund growth initiatives.

• Announced Medium-Term Management Plan targeting at least 1.5x sales and earnings by FY2030, supported by digital and real domain initiatives and M&A.

• Signed agreement to acquire 70% of XING, operator of JOYSOUND karaoke business, for ¥17.5 billion, effective April 1, 2026.

Financial highlights

• Net sales rose 14% year-over-year to ¥104.7 billion; operating income up 6% to ¥8.8 billion; EBITDA increased 8% YoY to ¥11.7 billion; EBITDA margin at 11.1%.

• Net income attributable to owners was ¥4.5 billion, flat YoY; adjusted net income up 1% YoY; basic EPS was ¥25.13.

• SG&A expenses increased with sales but remained below 25% of sales.

• Gross profit increased to ¥33,800 million from ¥31,824 million a year earlier.

• EPS (LTM) remained stable YoY.

Outlook and guidance

• FY2026 forecasts expect continued growth in recurring income and user base, with full-year forecast for net sales ¥424,000 million (+8.6%), operating profit ¥33,500 million (+6.1%), and profit attributable to owners of parent ¥18,500 million (+0.6%).

• Store & Facility Solutions to see sales and earnings growth after excluding impact of payment kiosk demand decline.

• Communication & Energy segment projects steady increases in contracts and profitability.

• Financial, Realty & Global segment anticipates growth from new subsidiaries and rent guarantees.

• Annual dividend forecast raised to ¥17.00 per share.