LogProstyle Inc. (NYSE:LGPS) (the "Company" or "LogProstyle"), a leading real estate renovation and resale, development, hotel and restaurant management company, today announced its first half fiscal year 2026 financial results for the period ended September 30, 2025. References in this earnings release to "JPY" or "¥" refer to Japanese yen and "US$" refers to United States dollars. Convenience translations included in this earnings release of Japanese yen into United States dollars have been made at the exchange rate of ¥147.97 = US$1.00, which was the foreign exchange rate on September 30, 2025.
First Half Fiscal Year 2026 Summary
(First half fiscal year 2026 results for the six-month period ended September 30, 2025, compared to the comparable six-month period of 2024)
- Total revenue of JPY10,324 million (US$69.8 million) compared to JPY10,518 million.
- Gross profit increased 25% to JPY2,196 million (US$14.8 million), margin expansion of over 460 basis points to 21.3% from 16.6%.
- Operating income reached JPY884 million (US$6 million), up 31% from JPY673 million. Operating margin increased by 217 basis points to 8.6% from 6.4%.
- Net income increased 34% to JPY494 million (US$3.3 million) from JPY369 million. Basic earnings per share grew by JPY3.85 to JPY20.90 (US$0.14), and diluted earnings per share grew by JPY 3.63 to JPY 20.68 (US$0.14).
- Equity ratio expanded by 136 basis points to 17.0%.
Results Summary for the First Half Fiscal Year 2026 |
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(US$ and ¥ in millions except per share data) |
1H FY2026 ($USD) |
1H FY2026 (¥JPY) |
1H FY2025 (¥JPY) |
YoY Change |
Revenue |
US$69.8 |
¥10,324 |
¥10,518 |
(2)% |
Gross Profit |
US$14.8 |
¥2,196 |
¥1,750 |
25% |
Gross Margin |
21.3% |
21.3% |
16.6% |
463 bps |
Operating Income |
US$6.0 |
¥884 |
¥673 |
31% |
Operating Margin |
8.6% |
8.6% |
6.4% |
217 bps |
Net Income |
US$3.3 |
¥494 |
¥369 |
34% |
Basic EPS |
US$0.14 |
¥20.90 |
¥17.05 |
¥3.85 |
Diluted EPS |
US$0.14 |
¥20.68 |
¥17.05 |
¥3.63 |
Yasuyuki Nozawa, Representative Director, President and CEO of LogProstyle said, "Our performance in the first half of fiscal year 2026 demonstrates the resilience of our business model and the continued progress across our core real estate and hospitality business lines. Despite modest revenue declines, we delivered material margin expansion and profit generation, largely attributed to disciplined cost management and proven track record navigating the Japanese real estate market. We are pleased with the performance of our hospitality business, with robust inbound tourism driving improved occupancy and higher average daily rates. As we look ahead to the back-half of the year, we remain focused on strengthening our balance sheet, accelerating our development pipelines, and enhancing operational efficiency. Our strategic priorities remain centered on long-term sustainable growth and value creation for our shareholders."
Financial highlights:
Revenue for the first six months of fiscal year 2026 in the period ended September 30, 2025, reached JPY10,324 million (US$69.8 million), declined slightly by 2% compared to JPY10,518 million in the year ago period. Real estate generated JPY9,498 million (US$64.2 million) in revenue, roughly stable versus JPY9,627 million in the year ago period. The moderate decline in real estate revenue was driven primarily by a reduction in the number of units sold, partially offset by an increase in sales of new real estate development projects. Hotel revenue of JPY642 million (US$4.3 million), increased by 10.7% compared to JPY580 million in the comparable year-ago period. Revenue growth was driven by an increase in occupancy rates from 68.2% to 70.8% in the six months ended September 30, 2025, and the higher average daily rates which increased from JPY19.6 thousand (US$130) to JPY21.4 thousand (US$140).
Gross profit increased by 25% to JPY2,196 million (US$14.8 million), up from JPY1,750 million, with gross margin expanding by 463 basis points to 21.3% from 16.6% in the prior year period. The gross margin expansion was supported by diligent cost controls and pricing power, partially offset by lower revenue.
Operating expenses increased by 22% to JPY1,311 million (US$8.9 million) from JPY1,077 million in the prior-year period. The increase in operating expenses was driven by costs associated with being a public company, and higher payroll costs. Operating income reached JPY884 million (US$6 million), an increase of 31% compared with JPY673 million in the comparable year-ago period. Operating margin expanded by 217 basis points to 8.6%, up from 6.4%, supported by stable revenue and rigorous expense management.
Net income for the first six months of fiscal year 2026 reached JPY494 million (US$3.3 million), up 34% compared with the JPY369 million in the year-ago period. Basic earnings per share increased by ¥3.85 to ¥20.90 (US$0.14) from ¥17.05, and diluted earnings per share increased by ¥3.63 to ¥20.68 (US$0.14) from ¥17.05.
EBITDA reached JPY927 million (US$6.3 million), up 28% from JPY723 in the year ago period of fiscal 2025. EBITDA margin expanded by 210 basis points to 9.0% from 6.9% in the year ago period.
Cash and cash equivalents of JPY1,161 million (US$7.8 million) at September 30, 2025, compared with JPY2,121 million at March 31, 2025.
Operational highlights:
- In October, LogProstyle announced a land acquisition for the development of its second hotel in the Asakusa district of Tokyo. Expected to open in October of 2028, LogProstyle's footprint expands to five strategically located hotels in the leading tourism markets of Japan. Situated on over 280 square meters of land in one of Tokyo's most atmospheric and historically rich neighborhoods, this latest hotel property is located within 300 meters from PROSTYLE RYOKAN Asakusa Tokyo, enabling operational synergies between the two hotels.
- Effective August 2025, LogProstyle engaged with Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. ("Mitsubishi UFJ Morgan Stanley Securities") to serve as an intermediary for the buying and selling of its shares. In line with the strategy of driving sustainable growth and long-term value creation for shareholders, the engagement marks an important milestone in enhancing liquidity and distribution, while expanding access to global institutional and individual investors.
LogProstyle Inc. CONSOLIDATED BALANCE SHEETS (Yen in thousands, except share data) |
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September 30,2025 |
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March 31,2025 |
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(unaudited) |
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ASSETS |
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|
|
|
|
|
||
Current assets |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
¥ |
1,161,203 |
|
|
¥ |
2,120,515 |
|
Trade notes and accounts receivable, net |
|
|
97,590 |
|
|
|
138,373 |
|
Inventories, net |
|
|
15,036,477 |
|
|
|
13,612,387 |
|
Consumption tax receivable |
|
|
137,380 |
|
|
|
5,749 |
|
Short-term investments |
|
|
156,214 |
|
|
|
182,030 |
|
Other current assets |
|
|
536,948 |
|
|
|
353,579 |
|
Total current assets |
|
|
17,125,812 |
|
|
|
16,412,633 |
|
Non-current assets |
|
|
|
|
|
|
||
Property, plant and equipment, net |
|
|
424,770 |
|
|
|
357,527 |
|
Operating lease right-of-use assets |
|
|
4,246,457 |
|
|
|
4,481,941 |
|
Software |
|
|
25,349 |
|
|
|
27,792 |
|
Leasehold and guarantee deposits |
|
|
395,137 |
|
|
|
465,968 |
|
Deferred tax assets |
|
|
435,123 |
|
|
|
458,767 |
|
Other non-current assets |
|
|
776,860 |
|
|
|
363,608 |
|
Allowance for credit losses |
|
|
(75,044 |
) |
|
|
(84,048 |
) |
Total non-current assets |
|
|
6,228,652 |
|
|
|
6,071,555 |
|
Total assets |
|
¥ |
23,354,464 |
|
|
¥ |
22,484,188 |
|
LIABILITIES |
|
|
|
|
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|
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Current liabilities |
|
|
|
|
|
|
||
Accounts payable |
|
¥ |
303,760 |
|
|
¥ |
597,708 |
|
Accrued expenses |
|
|
148,554 |
|
|
|
112,661 |
|
Short-term loans |
|
|
1,861,566 |
|
|
|
1,885,259 |
|
Current portion of bonds |
|
|
6,323 |
|
|
|
28,620 |
|
Current portion of long-term loans |
|
|
4,001,512 |
|
|
|
4,025,343 |
|
Operating lease liabilities, current |
|
|
475,229 |
|
|
|
463,129 |
|
Finance lease liabilities, current |
|
|
8,019 |
|
|
|
8,400 |
|
Contract liabilities |
|
|
91,659 |
|
|
|
252,260 |
|
Income taxes payable |
|
|
256,081 |
|
|
|
248,885 |
|
Other current liabilities |
|
|
176,528 |
|
|
|
254,956 |
|
Total current liabilities |
|
|
7,329,231 |
|
|
|
7,877,221 |
|
Non-current liabilities |
|
|
|
|
|
|
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Bond |
|
|
38,720 |
|
|
|
- |
|
Long-term loans |
|
|
8,010,676 |
|
|
|
6,858,607 |
|
Operating lease liabilities, non-current |
|
|
3,863,265 |
|
|
|
4,090,933 |
|
Finance lease liabilities, non-current |
|
|
15,228 |
|
|
|
19,062 |
|
Other non-current liabilities |
|
|
126,351 |
|
|
|
121,146 |
|
Total non-current liabilities |
|
|
12,054,240 |
|
|
|
11,089,748 |
|
Total liabilities |
|
¥ |
19,383,471 |
|
|
¥ |
18,966,969 |
|
SHAREHOLDERS' EQUITY |
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|
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Common shares: 81,498,000 shares authorized, 23,652,110 shares issued and 23,628,452 shares outstanding as of September 30, 2025 and March 31, 2025 with no stated value. |
|
¥ |
924,817 |
|
|
¥ |
924,817 |
|
Capital surplus |
|
|
1,445,333 |
|
|
|
1,445,333 |
|
Additional paid in capital |
|
|
(197,466 |
) |
|
|
(238,115 |
) |
Retained earnings |
|
|
1,813,103 |
|
|
|
1,397,387 |
|
Treasury shares |
|
|
(2,539 |
) |
|
|
(2,539 |
) |
Accumulated other comprehensive loss |
|
|
(12,255 |
) |
|
|
(9,664 |
) |
Total shareholders' equity |
|
|
3,970,993 |
|
|
|
3,517,219 |
|
Total liabilities and equity |
|
¥ |
23,354,464 |
|
|
¥ |
22,484,188 |
|
LogProstyle Inc. CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Yen in thousands, except share and per share data) |
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For the Six Months Ended September 30, |
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|
2025 |
|
2024 |
||||
Revenue: |
|
¥ |
10,324,388 |
|
|
¥ |
10,518,468 |
|
Cost of revenue |
|
|
(8,128,849 |
) |
|
|
(8,768,666 |
) |
Gross profit |
|
|
2,195,539 |
|
|
|
1,749,802 |
|
|
|
|
|
|
|
|
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Operating expenses |
|
|
|
|
|
|
||
Selling, general and administrative expenses |
|
|
(1,311,386 |
) |
|
|
(1,077,092 |
) |
Total operating expenses |
|
|
(1,311,386 |
) |
|
|
(1,077,092 |
) |
|
|
|
|
|
|
|
||
Operating income |
|
|
884,153 |
|
|
|
672,710 |
|
|
|
|
|
|
|
|
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Other income (expenses): |
|
|
|
|
|
|
||
Interest expenses |
|
|
(126,237 |
) |
|
|
(109,535 |
) |
Other income, net |
|
|
5,301 |
|
|
|
5,871 |
|
Total other expenses |
|
|
(120,936 |
) |
|
|
(103,664 |
) |
|
|
|
|
|
|
|
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Income before income taxes |
|
|
763,217 |
|
|
|
569,046 |
|
Income tax expenses |
|
|
(268,798 |
) |
|
|
(199,891 |
) |
Net income |
|
|
494,419 |
|
|
|
369,155 |
|
|
|
|
|
|
|
|
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Other comprehensive income (loss) |
|
|
|
|
|
|
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Foreign currency translation adjustment |
|
|
(2,591 |
) |
|
|
(9,114 |
) |
Total comprehensive income |
|
¥ |
491,828 |
|
|
¥ |
360,041 |
|
Earnings per share: |
|
|
|
|
|
|
||
Basic |
|
¥ |
20.90 |
|
|
¥ |
17.05 |
|
Diluted |
|
|
20.68 |
|
|
|
17.05 |
|
Weighted average number of shares of common stock outstanding |
|
|
|
|
|
|
||
Basic |
|
|
23,652,110 |
|
|
|
21,652,110 |
|
Diluted |
|
|
23,906,208 |
|
|
|
21,652,110 |
|
LogProstyle Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (Yen in thousands) |
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For the Six Months Ended September 30, |
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|
2025 |
|
2024 |
||||
Cash flows from operating activities: |
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|
|
|
|
|
||
Net income |
|
¥ |
494,419 |
|
|
¥ |
369,155 |
|
Depreciation and amortization |
|
|
42,794 |
|
|
|
50,249 |
|
Amortization of debt issuance costs |
|
|
32,222 |
|
|
|
34,665 |
|
Stock-based compensation expenses |
|
|
40,649 |
|
|
|
- |
|
Deferred income taxes |
|
|
23,644 |
|
|
|
95,736 |
|
Provision of allowance for credit losses |
|
|
(9,004 |
) |
|
|
- |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Decrease in trade notes and accounts receivable, net |
|
|
40,783 |
|
|
|
51,518 |
|
(Increase) decrease in inventories, net |
|
|
(1,424,090 |
) |
|
|
1,339,815 |
|
(Increase) decrease in consumption taxes receivable |
|
|
(131,631 |
) |
|
|
22,899 |
|
(Increase) decrease in prepaid expenses |
|
|
(195,177 |
) |
|
|
12,795 |
|
(Increase) in advances to vendors |
|
|
(9,313 |
) |
|
|
(42,793 |
) |
Decrease (increase) in leasehold and guarantee deposits |
|
|
70,831 |
|
|
|
(7,875 |
) |
(Increase) decrease in long-term prepaid expenses |
|
|
(406,129 |
) |
|
|
125 |
|
Increase in accounts payables |
|
|
38,018 |
|
|
|
943 |
|
Increase (decrease) in accrued expenses |
|
|
35,893 |
|
|
|
(100,303 |
) |
Increase in income taxes payable |
|
|
7,196 |
|
|
|
42,200 |
|
(Decrease) in contract liabilities |
|
|
(160,601 |
) |
|
|
(59,719 |
) |
Increase in deposits received |
|
|
28,773 |
|
|
|
12,060 |
|
Other, net |
|
|
(59,989 |
) |
|
|
71,689 |
|
Net cash flows (used in) provided by operating activities |
|
|
(1,540,712 |
) |
|
|
1,893,159 |
|
|
|
|
|
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Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchase of short-term investments |
|
|
(30,064 |
) |
|
|
(118,000 |
) |
Proceeds from sales of short-term investments |
|
|
55,880 |
|
|
|
73,800 |
|
Purchases of property, plant and equipment, net |
|
|
(104,682 |
) |
|
|
(32,745 |
) |
Purchases of software |
|
|
(2,584 |
) |
|
|
(15,963 |
) |
Purchases of long-term investments |
|
|
- |
|
|
|
(270,000 |
) |
Purchases of investments in capital |
|
|
(3,270 |
) |
|
|
(1,220 |
) |
Other, net |
|
|
- |
|
|
|
(77 |
) |
Net cash flows used in investing activities |
|
|
(84,720 |
) |
|
|
(364,205 |
) |
|
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
|
||
(Decrease) increase in short-term borrowings, net |
|
|
(20,681 |
) |
|
|
127,254 |
|
Borrowings from long-term loans |
|
|
7,180,708 |
|
|
|
4,633,208 |
|
Repayments for long-term loans |
|
|
(6,030,730 |
) |
|
|
(6,728,724 |
) |
Proceeds from issuance of bonds |
|
|
50,000 |
|
|
|
- |
|
Redemption of bonds |
|
|
(28,620 |
) |
|
|
(24,640 |
) |
Payments for finance leases |
|
|
(4,216 |
) |
|
|
(4,148 |
) |
Payment for debt issuance costs |
|
|
(68,504 |
) |
|
|
(15,304 |
) |
Payments for dividends |
|
|
(78,703 |
) |
|
|
|
|
Payments of listing expenses |
|
|
(331,966 |
) |
|
|
(100,180 |
) |
Net cash flows provided by (used in) financing activities |
|
|
667,288 |
|
|
|
(2,112,534 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
(1,168 |
) |
|
|
2,830 |
|
Net (decrease) in cash and cash equivalents |
|
|
(959,312 |
) |
|
|
(580,750 |
) |
Cash and cash equivalents at the beginning of period |
|
|
2,120,515 |
|
|
|
1,218,241 |
|
Cash and cash equivalents at the end of period |
|
¥ |
1,161,203 |
|
|
¥ |
637,491 |
|
|
|
|
|
|
|
|
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SUPPLEMENTAL CASH FLOW INFORMATION: |
|
|
|
|
|
|
||
Cash paid for interest |
|
¥ |
279,310 |
|
|
¥ |
255,293 |
|
Cash paid for taxes |
|
¥ |
260,665 |
|
|
¥ |
67,666 |
|
Cash refund for taxes |
|
|
884 |
|
|
|
3,348 |
|
LogProstyle Inc. REVENUE BY BUSINESS SEGMENT (US$ and ¥ thousands) |
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Six Months Ended September 30, |
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|
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2025 ($) |
|
|
2025 (¥) |
|
|
2024 (¥) |
|
YoY % |
|||||
Real Estate |
|
$ |
64,190 |
|
|
|
¥ |
9,498,243 |
|
|
¥ |
9,627,373 |
|
(1.3 |
)% |
Hotel |
|
|
4,340 |
|
|
|
|
642,236 |
|
|
|
579,914 |
|
10.7 |
% |
Other |
|
|
1,243 |
|
|
|
|
183,909 |
|
|
|
311,181 |
|
(40.9 |
)% |
Total Revenue |
|
$ |
69,773 |
|
|
|
¥ |
10,324,388 |
|
¥ |
10,518,468 |
|
(1.8 |
)% |
|
LogProstyle Inc. Reconciliation of Operating Income to EBITDA (US$ and ¥ in million) |
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|
Six Months Ended September 30, |
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|
|
2025 ($) |
|
|
2025 (¥) |
|
|
2024 (¥) |
||||
Operating income |
|
$ |
6 |
|
|
|
¥ |
884 |
|
|
¥ |
673 |
Depreciation and amortization |
|
|
0.3 |
|
|
|
|
43 |
|
|
|
50 |
EBITDA |
|
$ |
6.2 |
|
|
|
¥ |
927 |
|
|
¥ |
723 |
EBITDA is a non-GAAP financial measure. Management believes that EBITDA provides useful information for investors to evaluate the Company's operating performance and cash-generating ability. It is also used by management for internal purposes, including performance evaluation and budgeting. EBITDA is not a measure defined under US-GAAP or IFRS and may not be comparable to similar metrics disclosed by other companies.
Forward-Looking Statements Disclaimer:
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the Company's future financial performance, operating results, business strategy, capital resources, liquidity, development pipeline, operational efficiency, and long-term growth objectives. These statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties include, but are not limited to, changes in economic conditions, real estate and hospitality market conditions, interest rate fluctuations, construction and development risks, cost inflation, regulatory changes, foreign exchange fluctuations, and other risks related to the Company's business operations, and other factors described in the Company's filings with the U.S. Securities and Exchange Commission, including the risks detailed in the Company's annual report on Form 20-F filed with the SEC on July 7, 2025. Forward-looking statements speak only as of the date they are made and the Company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this press release, except as required by applicable law. Any references to our website have been provided as a convenience, and the information contained on such website is not incorporated by reference into this press release.
About LogProstyle Inc.
LogProstyle Inc. is involved in a wide range of businesses, including real estate development, hotel management, and restaurant management. With the slogan "redefine life style," the Company is working on various projects with the aim of illustrating an innovative and sustainable lifestyle. LogProstyle is the first unlisted Japanese company to list its Japanese common shares directly on a major United States stock exchange rather than through American Depositary Receipts (ADRs).
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LogProstyle Inc., Investor Relations, [email protected]
Hayden IR, Investor Relations, [email protected]