ROUND ONE Corporation (4680): FY2025 Results Summary — Revenue Up 7.1%, Operating Profit Up 9.6%

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

Note: ROUND ONE Corporation labels the fiscal year ended March 31, 2026 as “FY2026.3,” and the tables and text below follow the labels used in the company’s presentation. ROUND ONE Corporation, which operates bowling, amusement, karaoke and Spo-cha entertainment complexes in Japan, the United States and China, reported revenue of ¥189.54 bn for FY2026.3 (April 2025 to March 2026), up 7.1% year on year, with operating profit of ¥28.77 bn, up 9.6%, and profit of ¥16.62 bn, up 7.9%. The company adopted International Financial Reporting Standards (IFRS) in place of Japanese GAAP starting with the Annual Securities Report for the fiscal year ended March 31, 2025, and the figures in this article are presented under IFRS. For FY2027.3, the company plans revenue of ¥219.09 bn and operating profit of ¥33.05 bn.

Consolidated Results (Full-Year Actual)

Revenue rose 7.1% year on year to ¥189.54 bn. The company attributed the ¥12.49 billion increase in revenue to factors such as an increase in the number of operating months. On expenses, there were increases mainly in personnel expenses, amusement prize expenses and utility expenses, as well as decreases in amusement lease depreciation. Operating profit increased ¥2.53 bn to ¥28.77 bn, and the operating profit margin improved from 14.8% to 15.2%. Other operating income and expenses improved from ¥(1.84) bn to ¥(0.74) bn, with FY2026.3 comprising impairment losses of ¥(0.48) bn, loss on sale and retirement of fixed assets of ¥(0.53) bn and others of ¥0.26 bn. The term-end store count was 161 stores, and total operating months increased 2.0% to 1,912.

Item (¥bn)	FY2025.3 Actual	FY2026.3 Actual	Change (%)
Revenue	177.05	189.54	+7.1
Cost of sales	141.99	149.80	+5.5
Gross profit	35.06	39.74	+13.3
SG&A expenses	6.97	10.23	+46.8
Other operating income & expenses	(1.84)	(0.74)	―
Operating profit	26.24	28.77	+9.6
Operating profit margin	14.8%	15.2%	―
Financial income & costs	(3.51)	(3.75)	―
Profit before tax	23.00	25.41	+10.5
Profit	15.40	16.62	+7.9
Term-end store count (stores)	160	161	+0.6

Against the company’s own plan for FY2026.3, revenue of ¥189.54 bn finished 0.4% above the planned ¥188.78 bn, helped by strong performance at existing stores in Japan and other factors. Operating profit of ¥28.77 bn came in 4.5% below the planned ¥30.13 bn, a shortfall of ¥1.36 bn, reflecting increases mainly in commission expenses, partly offset by decreases in amusement prize expenses and amusement lease depreciation. Profit of ¥16.62 bn was 6.8% below the planned ¥17.83 bn.

Revenue by Category

All five revenue categories grew year on year. Amusement, the largest category, rose 7.6% to ¥114.20 bn. In Japan, existing-store revenue increased 6.6% year on year for the full year, with Bowling up 7.3%, Amusement up 6.7%, Karaoke up 6.8% and Spo-cha up 5.4%.

Category (¥bn)	FY2025.3 Actual	FY2026.3 Actual	Change (%)
Bowling	29.40	31.27	+6.4
Amusement	106.14	114.20	+7.6
Karaoke, Food	18.60	20.13	+8.2
Spo-cha	19.31	20.19	+4.6
Others	3.57	3.73	+4.5
Revenue (total)	177.05	189.54	+7.1

Full-Year Forecast (FY2027.3 Plan)

For FY2027.3 (April 2026 to March 2027), the company plans revenue of ¥219.09 bn, operating profit of ¥33.05 bn (operating profit margin of 15.1%) and profit of ¥18.26 bn, with a term-end store count of 172 stores and 1,990 total operating months. The planned year-on-year increase in consolidated operating profit is ¥4.28 bn. In Japan, revenue is planned to grow 10.7%, including the effects of existing-store growth, price revisions in May, the launch of the “Toresugi~no Island” crane game area and an increase in operating months; major expense changes include amusement prize expenses +40%, utility expenses +12%, personnel expenses +5% and amusement lease depreciation expenses (12)%. The China business is expected to achieve operating profitability, and the DELICIOUS business’s operating profit is expected to remain at approximately the same level as the previous fiscal year, including revenue and costs associated with the opening of the first and second units and costs related to the third through fifth units. The company notes that, due to US securities law considerations, detailed plans for the U.S. operations are not being disclosed. Exchange rates for the forecast are assumed at approximately 1 USD = 150 JPY and 1 CNY = 21.00 JPY.

Item (¥bn)	FY2027.3 Plan	FY2026.3 Actual
Revenue	219.09	189.54
Bowling	33.00	31.27
Amusement	133.14	114.20
Karaoke, Food	21.56	20.13
Spo-cha	21.99	20.19
Others	9.37	3.73
Operating profit	33.05	28.77
Operating profit margin	15.1%	15.2%
Profit before tax	27.45	25.41
Profit	18.26	16.62
Term-end store count (stores)	172	161

Shareholder Returns

Quarterly dividends of ¥4.5 per share will be paid, and the year-end dividend for FY2026.3 is expected to be ¥4.5 per share. The company aims for a dividend payout ratio of approximately 25% of the full-year profit based on the forecast at the beginning of the fiscal year. In its FY2027.3 consolidated capital allocation plan, the company projects operating cash flow of ¥69.6 bn, allocated to facility investments for new stores of ¥42.0 bn, repayment of interest-bearing debt and payment of interest expenses of ¥41.4 bn, and shareholder returns of ¥4.7 bn, supplemented by cash and borrowings.

Capital Allocation Item	FY2027.3 Plan (¥bn)
Operating cash flow (IN)	69.6
New stores: facility investments (OUT)	42.0
Repayment of interest-bearing debt and payment of interest expenses (OUT)	41.4
Shareholder returns (OUT)	4.7

Medium-Term Plan / Topics

Under its mid-term vision, the company worked up to FY2026.3 to improve performance by increasing the number of crane game machines, implementing collaboration campaigns and opening new stores. From FY2027.3 onward, it will continue to enhance existing-store performance by actively introducing new game machines, planning and executing collaboration campaigns and expanding attractive amusement prizes, while driving growth through proactive store openings, including new business styles. The store opening policy is unchanged from the materials disclosed on November 7, 2025: several new stores annually in Japan and an active expansion strategy in the United States.

In Japan, the company launched “Toresugi~no Island,” a new crane game area designed with an emphasis on easier prize-winning; installation began in February 2026 and was completed at 73 stores as of the end of April 2026. An upward price revision of approximately 3% starting from May is being rolled out (except for Amusement), along with an upward revision of the medal rental fee. Approximately 30 collaboration campaigns per month are being conducted, and “StarHorseParty” medal game machines (SEGA Fave) were fully installed at all stores equipped with medal game areas by the end of March 2026.

In the United States, the company operated 59 stores as of the end of April 2026, including the Menlo Park store (Edison, New Jersey) opened on February 7, 2026, and plans to launch stores featuring a “Japanese Food Hall” bringing together restaurants across genres such as ramen, udon and takoyaki. Separately, under the “Round One Delicious” project, Round One Delicious USA, Inc. (a consolidated second-tier subsidiary) plans to open its first units in Las Vegas and Los Angeles in the second to third quarters of FY2027.3, followed by two units in New York in FY2028.3. The business plan per store assumes an investment amount of approximately $1,400,000, approximately 14 seats, operation 360 days a year, average customer spend of 750 USD (estimated), annual customer attraction of 4,000 people, annual sales of $3,000,000 and 10 employees.

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.