Financial Results Presentation for FY2026 Q2

Summary of Results

Revenue for FY2026 Q2 totaled 3,233 million yen, a 29.6% decrease year-over-year. Despite solid customer numbers at company-operated massage stores and an increase in insurance claims, revenue was negatively impacted by the divestiture of hospice and related businesses. Operating income improved substantially to 181 million yen year-over-year, aided by the elimination of losses associated with the divestiture. By segment, the decline in Medical Care revenue had a significant impact. The full-year plan targets revenue of 6,586 million yen and operating income of 1,171 million yen.

Segment Impacts and Outlook

Company-operated massage stores maintained revenue growth through increased customer numbers and higher insurance claim volumes. Conversely, massage franchise operations experienced lower revenue and profit due to weak new franchise recruitment. Medical Care revenue decreased following the divestiture of the hospice business, though profitability is expected to improve. For the full year, the key focus will be on sustaining stable growth in both company-operated and franchise massage businesses while mitigating the revenue shortfall in Medical Care.