INVASE’s property purchase-and-resale model is its primary growth engine, but FY2027-Q1 will be the point at which to confirm conversion into earnings and cash flow

Consolidated revenue in FY2026 was ¥8,317.996 million, comprising ¥1,251.858 million from the Mortgage Check business and ¥7,066.137 million from the INVASE business. INVASE accounted for 84.9% of the total, leaving consolidated performance highly dependent on a single business. In FY2027-Q1, it will be necessary to review not only company-wide revenue but also INVASE revenue and segment operating profit separately, and assess whether the high concentration above 80% has changed.

The shift from the former model, centered on referring customers to other companies, through consulting sales for high-quality users by a subsidiary, to a purchase-and-resale model involving direct transactions by the company itself has driven the growth. The number of property contracts increased by 335 in FY2026, up 97.7% year on year to 678. The number was previously 343, confirming expansion in contracts, but in FY2027-Q1 the key issue will be whether the company can disclose quarterly contract volume, contract value and the timing of revenue recognition, rather than merely cumulative member numbers.

INVASE segment operating profit was ¥58.340 million in FY2026 relative to the scale of revenue, implying a simple operating margin of only about 0.8%. Direct transactions and purchase-and-resale models can generate greater revenue than brokerage models, but costs such as purchases, property held for sale, sales personnel and borrowing costs are incurred ahead of revenue. In FY2027-Q1, the focus will be on whether growth in contract volume is translating not only into revenue but also into improved segment margins, and whether delays in recognizing some completed transactions have recurred.

Borrowings stood at ¥910.700 million at the end of FY2026, comprising ¥600.000 million in short-term borrowings and ¥310.700 million in long-term borrowings. Since growth involving purchases of property held for sale can cause inventory and borrowings to increase before revenue is recognized, it will be necessary to review the balance of property held for sale, any inventory impairment losses, changes in borrowings and cash flow from operating activities in FY2027-Q1.