Universal Entertainment (6425) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2026 rose to ¥28,434 million, up 4.2% year-over-year, with operating profit of ¥3,497 million, reversing a loss in the prior year.

• Net loss attributable to owners narrowed to ¥1,425 million from ¥7,556 million year-over-year.

• Amusement Equipments Business saw robust demand for smart Pachislot machines, expanding market share and driving sales and profit growth.

• Integrated Resort Business in the Philippines faced intensified competition and market contraction, but sequential results improved due to cost optimization and loyalty program enhancements.

• Comprehensive income was negative ¥2,847 million, an improvement from negative ¥13,774 million in Q1 FY2025.

Financial highlights

• Gross profit margin improved to 65% from 56% year-over-year, with gross profit up ¥3,323 million to ¥18,564 million.

• Adjusted EBITDA increased to ¥6,975 million from ¥3,735 million year-over-year.

• Operating profit improved to ¥3,497 million from a loss of ¥2,512 million year-over-year.

• Net assets decreased to ¥126,840 million from ¥129,687 million at the end of FY2025.

• Selling, general, and administrative expenses decreased by ¥2,686 million year-over-year.

Outlook and guidance

• Full-year FY2026 forecasts: net sales ¥149,000 million, operating profit ¥16,000 million, net income ¥2,000 million, adjusted EBITDA ¥29,000 million.

• Full-year FY2026 guidance maintained: net sales of ¥140,000 million (+13.9% YoY), operating profit of ¥16,000 million, ordinary profit of ¥2,200 million, and net income attributable to owners of ¥2,000 million.

• Amusement Equipments Business expects continued market revitalization and growth with new major titles and expansion of smart Pachislot and Pachinko machines.

• Integrated Resort Business anticipates ongoing competitive pressures and is focusing on online gaming services and loyalty programs to offset in-person visitation challenges.

• No revision to previously announced forecasts.