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Introduction & Market Context
KakakuCom Inc (TSE:2371) presented its second-quarter fiscal year 2026/3 results on November 5, 2025, revealing strong revenue growth across all business segments, particularly in its Kyujin Box job recruitment platform. However, the company’s aggressive investment strategy has put pressure on operating profits, leading to a mixed market reaction. KakakuCom’s stock has recovered slightly to ¥2,412.5 after initially dropping 9.09% following the earnings announcement.
Executive Summary
The company reported Q2 FY26/3 revenue of ¥22,903 million, representing a 22.8% year-over-year increase, while operating profit declined 7.1% to ¥6,555 million. The operating profit margin contracted to 28.6%, reflecting KakakuCom’s strategic decision to invest heavily in growth initiatives, particularly in its Kyujin Box segment.
As shown in the following executive summary slide, the company maintains its full-year forecast of ¥92 billion in revenue (+17.3%) and ¥28 billion in operating profit (-4.4%):
Quarterly Performance Highlights
KakakuCom’s Q2 financial performance showed strong revenue growth but declining profitability metrics. Profit attributable to owners fell 8.5% year-over-year to ¥4,362 million, with earnings per share of ¥22.05. The company’s strategic investments in advertising and personnel have significantly impacted the bottom line.
The following slide details the key financial metrics for the quarter:
Breaking down performance by business segment reveals varying growth rates and profitability. The Tabelog restaurant platform and Kyujin Box job recruitment service showed particularly strong revenue growth at 20.5% and 67.2% respectively. However, Kyujin Box operated at a loss due to substantial brand investment.
The segment breakdown illustrates these performance differences:
Segment Analysis
Kakaku.com
The core Kakaku.com price comparison segment showed modest revenue growth of 3.0% year-over-year, reaching ¥5,749 million in Q2. However, segment income increased significantly by 35.9% to ¥3,010 million, demonstrating improved operational efficiency. The personal finance category was particularly strong, showing 35.9% year-over-year growth.
The following chart shows the quarterly revenue and segment income trends for Kakaku.com:
Tabelog
The Tabelog restaurant platform continued its strong performance with revenue increasing 20.5% year-over-year to ¥9,677 million, while segment income grew 25.1% to ¥5,633 million. This growth was primarily driven by the restaurant reservations business, which saw a 25.1% increase compared to the previous year.
The quarterly trends for Tabelog are illustrated in this slide:
Tabelog’s key performance indicators showed positive momentum, with the number of contracted restaurants reaching a new record high of 23,100. Online reservations also continued to grow, with inbound reservations from foreign visitors increasing, though they still represent only approximately 2% of total reservations.
Kyujin Box
The Kyujin Box job recruitment platform demonstrated the strongest revenue growth among all segments, increasing 67.2% year-over-year to ¥4,952 million. However, the segment reported an operating loss of ¥724 million due to significant brand investment, which the company described as planned and necessary for future growth.
The following slide shows Kyujin Box’s revenue growth and segment income:
The number of active client accounts for Kyujin Box reached 14,500 in Q2 FY26/3, reflecting the success of the company’s investment strategy in acquiring new corporate clients. However, ARPU (Average Revenue Per User) slightly decreased due to the accelerated acquisition of corporate clients.
Strategic Initiatives
A key strategic development announced during the presentation was the integration of LiPLUS with Kakaku.com’s newly established "Kurashi Support" (Home Support) service, which launched on October 1, 2025. This integration combines Kakaku.com’s substantial user traffic with LiPLUS’s matching technology to connect users with service providers across six domains, including waste removal, house cleaning, and air conditioning repair.
The following slide illustrates this strategic integration:
The company’s operating expenses reflect its growth strategy, with advertising expenses increasing to 22.6% of revenue in Q2 FY26/3 and personnel expenses reaching 21.3% of revenue. These investments are primarily directed toward the Kyujin Box segment and are expected to generate future returns.
Forward-Looking Statements
KakakuCom maintained its full-year forecast for FY26/3, projecting revenue of ¥92 billion (+17.3% YoY) and operating profit of ¥28 billion (-4.4% YoY). The forecast is broken down by quarter as shown in the following slide:
Looking further ahead, the company presented its mid-term plan with ambitious growth targets. KakakuCom projects a 5-year compound annual growth rate (CAGR) of 13%, with FY30/3 revenue forecast at ¥143 billion and operating profit at ¥53 billion. The growth strategy varies by segment, with Kyujin Box expected to be the primary growth driver at a CAGR of 25%.
Despite the current pressure on profitability due to strategic investments, KakakuCom remains committed to maintaining strong shareholder returns, targeting a ROE of 40% or more and an equity ratio of 50% or more. The company’s capital allocation strategy balances growth investments with shareholder returns, suggesting confidence in the long-term benefits of its current investment strategy.
In conclusion, KakakuCom’s Q2 FY26/3 presentation reveals a company focused on long-term growth through strategic investments, particularly in its high-potential Kyujin Box segment. While these investments are currently impacting profitability, the strong revenue growth across segments and ambitious mid-term targets indicate management’s confidence in the company’s strategic direction.
Full presentation:
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