AUCNET INC. (3964): FY2025 Results Summary — Operating Profit Up 35.9%, EBITDA Target Reached Two Years Early

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

AUCNET INC., which operates B2B auction platforms for used smartphones, pre-owned luxury brand items, used cars and motorcycles, flowers and other goods, closes its fiscal year on December 31; FY2025 in this article is the fiscal year ended December 31, 2025. The company reported net sales of 64,139 million yen (+14.7% year on year) and operating profit of 9,517 million yen (+35.9%), with EBITDA of 10,559 million yen. According to the company, the Lifestyle Product Segment continued performing favorably, and despite costs associated with releasing the core system and membership site as well as initiatives for its 40th anniversary, it achieved the ¥10 billion EBITDA target of its medium-term management plan, Blue Print 2027, two years ahead of schedule. For FY2026 it forecasts net sales of 71,000 million yen and operating profit of 11,000 million yen, and it is raising its dividend payout ratio target to 50% or higher.

Consolidated Results (Full-Year Actual)

Net sales rose 14.7% to 64,139 million yen, achieving 102.6% of the revised forecast of 62,500 million yen announced on November 11, 2025. Operating profit increased 35.9% to 9,517 million yen (105.2% of the revised forecast of 9,050 million yen), and the operating profit margin improved by 2.3pt to 14.8%. Ordinary profit was 9,521 million yen (+32.1%) and profit attributable to owners of parent was 5,921 million yen (+32.0%), 107.7% of the revised forecast of 5,500 million yen. Basic earnings per share were 129.85 yen, versus 94.22 yen in FY2024 on a basis reflecting the 2-for-1 share split conducted on April 1, 2025.

Item (million yen)	FY2024	FY2025	YoY	FY2025 Revised Forecast (Nov 11, 2025)	Rate of Achievement
Net sales	55,910	64,139	+14.7%	62,500	102.6%
Operating profit	7,005	9,517	+35.9%	9,050	105.2%
Operating profit margin	12.5%	14.8%	+2.3pt	14.5%	–
EBITDA	8,028	10,559	+31.5%	–	–
Ordinary profit	7,207	9,521	+32.1%	9,050	105.2%
Profit attributable to owners of parent	4,485	5,921	+32.0%	5,500	107.7%
Basic earnings per share	94.22 yen (188.44 yen)	129.85 yen	+35.63 yen	120.61 yen	107.7%
Dividend per share	38.00 yen (76.00 yen)	58.00 yen	+20.00 yen	55.00 yen	–
Dividend payout ratio	40.3%	44.7%	+4.4pt	45.6%	–

FY2024 per-share figures reflect the 2-for-1 share split conducted on April 1, 2025; figures in parentheses are before that adjustment. EBITDA is defined by the company as operating profit plus depreciation, amortization of goodwill and share of loss (profit) of entities accounted for using the equity method (excluding amortization of goodwill for the period under review).

On the balance sheet, total assets rose to 50,781 million yen from 44,040 million yen, with cash and deposits of 23,104 million yen. Total net assets were 26,622 million yen. Cash flows from operating activities were 12,745 million yen (4,853 million yen in FY2024), cash flows from investing activities were -1,068 million yen and cash flows from financing activities were -5,557 million yen, leaving cash and cash equivalents at the end of the period of 23,104 million yen.

Segment Results

The group-wide transaction amount (the total amount of product sales and items sold at auction through the company’s services) was 740,383 million yen (+15.4%), comprising 155,734 million yen in the Lifestyle Product Segment (+31.0%), 573,063 million yen in the Mobility & Energy Segment (+12.3%) and 11,585 million yen in Others (-5.3%).

Segment	Metric (million yen)	FY2024	FY2025	YoY
Lifestyle Products	Net sales	38,486	45,208	+17.5%
Lifestyle Products	Operating profit	5,362	8,393	+56.5%
Mobility & Energy	Net sales	14,700	16,122	+9.7%
Mobility & Energy	Operating profit	3,682	3,464	-5.9%
Other	Net sales	3,055	3,317	+8.6%
Other	Operating profit	-362	-371	–
Adjustment	Net sales	-333	-509	–
Adjustment	Operating profit	-1,678	-1,968	–
Total	Net sales	55,910	64,139	+14.7%
Total	Operating profit	7,005	9,517	+35.9%

Lifestyle Products: both sales and profit increased (net sales +17.5%, segment income +56.5%). In the Digital Product Business, continued strengthening of collaboration with domestic suppliers and of buying power led to a significant increase in both units sold and transaction amount; the transaction amount rose 71.3% to 83,927 million yen and sales units rose 53.7% to 2,549,758. In the Fashion Resale Business, the BtoB transaction amount was 52,608 million yen (+1.1%): despite a decline in the average unit price of items sold, items listed (+19.0%) and items sold (+12.7%) increased as auction members grew to 6,883 through digital marketing and demand for cashing of inventory rose, and profitability improved following a partial revision of the fee system. In the business targeting consumers, the company notes a softening trend in transaction amount due to fewer purchased items owing to the closure of certain stores and the impact of U.S. tariff policy.

Mobility & Energy: sales increased and profit decreased (net sales +9.7%, segment income -5.9%). In the Automobile Business, the total number of vehicles sold and auctions won increased across the company’s own auctions, the shared inventory market, live relay broadcast auctions and the proxy bidding service, and the number of vehicles inspected rose as inspection demand from a used vehicle listing platform remained high. The automobile transaction amount was 560,097 million yen (+12.1%) and vehicles inspected totaled 1,580,222 units (+13.2%). In the Motorcycle Business, the transaction amount rose 19.3% to 12,965 million yen. Costs related to the new core system “BASE” and the membership website “AUCNET CARS”, as well as a stock remuneration plan for employees, were incurred.

Other: net sales rose 8.6% to 3,317 million yen, with an operating loss of 371 million yen (a loss of 362 million yen in the previous year). In the Agricultural Business, the transaction amount softened as the number of flowers collected and average unit prices were lower, although auction transaction amount and membership at the Kansai base steadily increased. In the Circular Commerce Business, the amount of loss decreased due to the withdrawal from unprofitable businesses.

Business KPI	FY2024	FY2025	YoY
Digital Product: transaction amount (million yen)	49,003	83,927	+71.3%
Digital Product: sales units (unit)	1,658,721	2,549,758	+53.7%
Fashion Resale BtoB: transaction amount (million yen)	52,017	52,608	+1.1%
Fashion Resale BtoB: items sold (item)	848,756	956,584	+12.7%
Fashion Resale, business targeting C: transaction amount (million yen)	17,848	19,199	+7.6%
Automobile: transaction amount (million yen)	499,499	560,097	+12.1%
Automobile: total vehicles sold/bought (unit)	524,057	553,090	+5.5%
Motorcycle: transaction amount (million yen)	10,872	12,965	+19.3%
Vehicles inspected (unit)	1,396,305	1,580,222	+13.2%

FY2026 Forecast

For FY2026, the company expects sales and profit to increase, citing growth of its existing businesses and the one-time costs incurred in FY2025. It forecasts net sales of 71,000 million yen (+10.7%), operating profit of 11,000 million yen (+15.6%, margin 15.5%), ordinary profit of 10,850 million yen (+13.9%) and profit attributable to owners of parent of 7,200 million yen (+21.6%). By quarter, the company expects profit to decrease year on year in 1Q due to higher costs of branding initiatives, including television commercials in the Fashion Resale Business, and amortization of the new core system and membership website, and then to increase year on year from 2Q.

Item (million yen)	FY2025 (Actual)	FY2026 (Forecast)	YoY
Net sales	64,139	71,000	+10.7%
Operating profit	9,517	11,000	+15.6%
Operating profit margin	14.8%	15.5%	+0.7pt
Ordinary profit	9,521	10,850	+13.9%
Profit attributable to owners of parent	5,921	7,200	+21.6%
Basic earnings per share	129.85 yen	79.30 yen (158.60 yen)	–
Dividend per share	58.00 yen	40.00 yen (80.00 yen)	–

FY2026 per-share forecasts reflect the 2-for-1 share split scheduled with an effective date of April 1, 2026; figures in parentheses are before that adjustment.

Shareholder Returns

The FY2025 dividend was 58.00 yen per share (+20.00 yen year on year), for a payout ratio of 44.7%. The company will raise its dividend payout ratio policy from 40% or higher to 50% or higher from FY2026. The FY2026 dividend forecast is 40 yen per share, an increase of 11 yen year on year after taking into account the share split in April 2026, with a forecast payout ratio of 50.4%. On a split-adjusted basis, dividends per share were 13.25 yen in FY2023, 19.00 yen in FY2024 and 29.00 yen in FY2025.

Fiscal Year (split-adjusted)	EPS (yen)	Dividend per share (yen)	Consolidated dividend payout ratio
FY2023	43.95	13.25	30.1%
FY2024	47.11	19.00	40.3%
FY2025	64.93	29.00	44.7%
FY2026 (forecast)	79.30	40.00	50.4%

The share split (2 shares for each share, record date March 31 and effective date April 1, 2026) increases total issued shares from 48,026,400 to 96,052,800. Its stated purpose is to improve the liquidity of the company’s shares and further expand the investor base by lowering the amount per unit of investment. The year-end dividend for FY2025 and shareholder benefits based on the December 31, 2025 record date apply to the number of shares outstanding prior to the split.

Medium-Term Management Plan: Blue Print 2027 Revised Upward

Having achieved all medium-term quantitative targets of Blue Print 2027 for FY2027 (EBITDA, ROE and dividend payout ratio) two years ahead of schedule, the company revised the targets on February 13, 2026. The EBITDA target was raised from 10 billion yen to 13.5 billion yen and the dividend payout ratio target from 40% or higher to 50% or higher, while the ROE target remains 15-20%. The vision (working with partners worldwide to shape the future of the circular economy) and the long-term target of GCV 1 trillion yen are unchanged.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.