U-NEXT HOLDINGS (9418) Q2 2026 earnings summary

Executive summary

• Achieved record-high sales and earnings at all levels for both the first half and the quarter, with all segments performing solidly against forecasts; net sales for the six months ended February 28, 2026 rose 13.9% year-over-year to ¥212,823 million, with operating profit up 9.1% to ¥18,116 million and ordinary profit up 2.8% to ¥17,087 million.

• Profit attributable to owners of parent increased 4.7% year-over-year to ¥9,884 million.

• The group operates four main segments: Content Distribution, Store & Facility Solution, Communication & Energy, and Financial, Realty & Global Business.

• Content Distribution nearly met its annual net subscriber increase target in the first half, positioning for strong YoY earnings growth in the second half.

• Store & Facility Solutions showed pro forma earnings growth of 14% after adjusting for prior year one-time demand.

Financial highlights

• First half net sales reached ¥212.8bn, up 14% YoY, and operating income was ¥18.1bn, up 9% YoY; EBITDA for the period was ¥24,269 million, up 10.6% YoY.

• EBITDA-CAPEX increased 227% YoY due to higher earnings and lower growth investments.

• Net income attributable to owners was ¥9.88bn, up 5% YoY; adjusted net income was ¥11.6bn, also up 5% YoY.

• Basic earnings per share was ¥54.80, and adjusted EPS was ¥64.37.

• Cash and cash equivalents at period-end were ¥82,386 million, up ¥25,503 million from the previous fiscal year-end.

Outlook and guidance

• First half sales and earnings exceeded 50% of full-year forecasts, indicating strong progress toward annual targets.

• Full-year forecast for FY ending August 31, 2026: net sales ¥424,000 million (+8.6%), operating profit ¥33,500 million (+6.1%), ordinary profit ¥32,200 million (+4.2%), profit attributable to owners of parent ¥18,500 million (+0.6%).

• Full-year EBITDA forecast is ¥46,500 million (+8.1%), with adjusted EPS of ¥121.97 (+7.8%).

• Content Distribution aims for higher than planned YoY earnings growth in the second half, leveraging easier comparisons.

• Dividend forecast for FY2026 is ¥17.00 per share.