LIFULL (2120): FY2025 Results Summary — Record Net Profit and Record Dividend as HOME’S Services Accelerates

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

Note: LIFULL Co., Ltd. closes its books at the end of September, and the company labels the year covered here as “FY 2025/9” (October 2024 – September 2025). Labels in the text, tables and segment data below follow the company’s presentation.

LIFULL Co., Ltd. reported full-year FY 2025/9 revenue of 28,127 million yen, up 6.9% year on year, and operating profit of 3,815 million yen, up 26.1%, with the operating profit margin rising 2.1pt to 13.6%. Net profit attributable to owners of the parent was 5,317 million yen against a loss of 8,463 million yen a year earlier, which the company describes as a record high following its exit from the Overseas businesses. The company raised the dividend payout ratio by 5 pp to 30% and will pay a record-high dividend of 10.41 yen per share, including a 1.00 yen commemorative dividend for the 30th anniversary of its founding. Alongside the results, LIFULL announced a new Mid-Term Management Plan covering FY 2026/9 to FY 2028/9.

Consolidated Results (Full-Year Actual)

Revenue rose 6.9% to 28,127 million yen, which the company attributes to increases in clients, listings and inquiries from continued site development and sales initiatives for LIFULL HOME’S. SG&A was almost flat at 22,693 million yen (+0.1%): personnel-related expenses increased 7.7% to 9,640 million yen, primarily due to increases in bonus accruals on higher profit, while sales and advertising expenses fell 7.9% to 8,472 million yen on optimization of advertising spend for LIFULL HOME’S. Operating profit increased 26.1% to 3,815 million yen. The company notes that after removing the one-off gain from the sale of LIFULL SPACE in the previous fiscal year (0.91 billion yen), operating profit grew approximately 1.8x, or 80.3%. Other income and expenses swung to -158 million yen from +760 million yen, reflecting the prior-year one-off gain and an impairment recorded in FY 2025/9 on internal systems. LIFULL also states that operating profit for LIFULL Co., Ltd. on a non-consolidated basis reached a record high.

Item (JPY mil.)	FY 2025/9 (Oct.-Sep.)	FY 2024/9 (Oct.-Sep.)	Change	Change %
Revenue	28,127	26,312	+1,815	+6.9%
Cost of revenue	1,460	1,364	+95	+7.0%
SG&A	22,693	22,681	+12	+0.1%
SG&A: Personnel-Related	9,640	8,952	+687	+7.7%
SG&A: Sales & Advertising	8,472	9,201	-729	-7.9%
SG&A: Depreciation and Amortization	1,165	1,107	+57	+5.2%
SG&A: Other	3,415	3,418	-3	-0.1%
Other Income and Expenses	-158	760	-918	–
Operating Profit	3,815	3,027	+788	+26.1%
Operating Profit Margin	13.6%	11.5%	+2.1pt	–
Net profit (attributable to owners of the parent)	5,317	-8,463	+13,780	–

Prepared under IFRS. Revenue through operating profit are presented on a continuing-operations basis; net profit covers continuing and discontinued operations. The Overseas segment was reclassified as a discontinued operation, with the share transfer completed on January 21, 2025, leaving HOME’S Services as the only remaining reportable segment. Change % have been excluded for results that were negative in the previous fiscal year.

Segment Results

HOME’S Services revenue rose 6.3% to 25,530 million yen, driven by increases in site traffic and inquiries, and segment income rose 61.7% to 4,322 million yen on revenue growth and optimization of advertising and sales spend. The company describes this as a record-high segment profit, with the segment profit margin improving 5.8 pp year on year from 11.1% to 16.9%, and notes eight consecutive quarters of revenue expansion since the first quarter of FY 2024/9. Other Businesses revenue increased 13.5% to 2,596 million yen and the segment loss narrowed to -361 million yen from -421 million yen, primarily due to improved profitability of LIFULL senior, selective focus within the Regional Revitalization business and gains from the Rakuten STAY accommodations acquired in December 2024.

Segment	Metric (JPY mil.)	FY 2025/9 (Oct.-Sep.)	FY 2024/9 (Oct.-Sep.)	Change	Change %
HOME’S Services	Revenue	25,530	24,024	+1,506	+6.3%
Other	Revenue	2,596	2,288	+308	+13.5%
Total	Revenue	28,127	26,312	+1,815	+6.9%
HOME’S Services	Segment income and loss	4,322	2,673	+1,649	+61.7%
Other	Segment income and loss	-361	-421	+59	–
Inter-segment transactions	Segment income and loss	13	15	-1	-10.8%
Total	Segment income and loss	3,974	2,266	+1,707	+75.3%

As key performance indicators for HOME’S Services, the 12-month average Client Network was 33,245 in FY 2025/9 (FY 2024/9: 32,697; FY 2023/9: 32,566) and the 12-month average ARPA (Average Revenue Per Agent, calculated as HOME’S Services revenue divided by the Client Network) was 63,997 yen (FY 2024/9: 61,714 yen; FY 2023/9: 60,160 yen). The company attributes Client Network growth to sales initiatives and the ARPA increase to continued growth in for-sale property markets. From this fiscal year the number of clients reflects the number of invoiced clients to client contracts, and past figures have been adjusted accordingly. Revenue at the investment real estate platform Kenbiya grew 16.6% year on year, which LIFULL attributes to synergy from database integration with LIFULL HOME’S and greater sales reach.

Financial Position and Cash Flow

Total assets stood at 40,915 million yen as of September 30, 2025, down 0.7% from a year earlier, while liabilities fell 13.5% to 14,691 million yen and total equity rose 8.4% to 26,223 million yen. Equity per share attributable to owners of the parent was 203.08 yen, up 14.75 yen. Goodwill fell to 385 million yen from 9,954 million yen and investment securities rose to 6,077 million yen from 555 million yen. LIFULL states that the accounting treatment for the strategic transformation of the Overseas segment applied in the second quarter significantly reduced the risk of goodwill impairment and long-term financial liabilities. Operating cash flow increased to 4,808 million yen, which the company attributes to improved profitability of the Group.

Item (JPY mil.)	FY 2025/9 / As of Sep 30, 2025	FY 2024/9 / As of Sep 30, 2024	Change
Assets	40,915	41,191	-275
Liabilities	14,691	16,989	-2,297
Total Equity	26,223	24,202	+2,021
Equity per share attributable to owners of the parent (JPY)	203.08	188.33	+14.75
Operating cash flow	4,808	1,671	+3,137
Investing cash flow	-11,852	-718	-11,133
Financing cash flow	3,890	-2,977	+6,867
Change in cash and cash equivalents	-3,040	-1,876	-1,164
Balance of cash and cash equivalents	10,702	14,633	-3,931

FY 2026/9 Forecast

For FY 2026/9 (October 2025 – September 2026), LIFULL forecasts revenue of 29,700 million yen, up 5.6%, operating profit of 3,000 million yen, down 21.4%, an operating profit margin of 10.1%, and net profit attributable to owners of the parent of 1,900 million yen. By segment, HOME’S Services revenue is forecast at 26,450 million yen (+3.6%) and Other Businesses at 3,250 million yen (+25.2%). The company positions FY 2026/9 as an accelerated start toward realizing the Mid-Term Management Plan, with increased investment in talent acquisition (sales, development and client business process support), optimized advertising, and AI and generative AI, managed against a control line of an operating profit margin of 10+%. The bridge from FY 2025/9 operating profit of 3.82 billion yen to the FY 2026/9 forecast of 3.0 billion yen shows increased gross earnings in HOME’S Services etc. of 1.02 billion yen, sales and advertising of -1.03 billion yen, an increase in other expenses (personnel etc.) of -0.34 billion yen, and one-off expenses in FY 2026/9 of -0.22 billion yen for hiring for sales, AI and development and -0.25 billion yen for the reevaluation of restoration fees for the current office.

Item (JPY mil.)	FY2026 (Oct.-Sep.) [Full-year forecast]	FY2025 (Oct.-Sep.) [Actual]	Change	Change %
Revenue	29,700	28,127	+1,573	+5.6%
Cost of revenue	2,016	1,460	+556	+38.1%
SG&A	24,737	22,693	+2,044	+9.0%
SG&A: Personnel-Related	9,879	9,640	+239	+2.5%
SG&A: Sales & Advertising	9,498	8,472	+1,026	+12.1%
SG&A: Other	5,360	4,580	+780	+17.0%
Other Income and Expenses	53	-158	+211	–
Operating Profit	3,000	3,815	-815	-21.4%
Operating Profit Margin	10.1%	13.6%	-3.5pt	–
Net profit (attributable to owners of the parent)	1,900	5,317	-3,417	▲64.3%
Revenue: HOME’S Services	26,450	25,530	+920	+3.6%
Revenue: Other Businesses	3,250	2,596	+654	+25.2%

Shareholder Returns

LIFULL increased the dividend payout ratio by 5 pp to 30% for FY 2025/9 and will pay a record-high dividend per share of 10.41 yen, which includes a 1.00 yen commemorative dividend for the 30th anniversary of the company’s founding. The payout ratio has risen progressively from 15% in FY 2012/9 to 30% in FY 2025/9. Under the dividend policy, distributable earnings are calculated by excluding certain non-recurring, non-cash factors from net profit attributable to owners of the parent, and that amount is multiplied by the 30% payout ratio; potential adjustment factors cited for FY 2025/9 include the waiver of claims related to the restructuring of overseas operations, the gain on loss of control of overseas subsidiaries, and a tax adjustment for the reversal of deferred tax assets related to carryforwards arising from the reorganization of overseas subsidiaries. No changes have been applied to the dividend policy apart from the increase in the payout ratio. Other measures cited by the company include completed buybacks in 2020 and 2022, stock options granted to executives and employees aligned with the Mid-Term targets, and a restricted stock plan for executives of LIFULL Co., Ltd.

Mid-Term Management Plan (FY 2026/9 – FY 2028/9)

Created in November 2025, the new Mid-Term Management Plan is themed “Leveraging AI & Group Synergy to Become the AI Leader in the Housing Sector,” built on growth in the core housing business, maximizing Group synergy, and step-change growth via AI optimization following the shift of management focus to Japan after the Overseas restructuring. Financial targets for FY 2028/9 are consolidated revenue of 35.0 to 40.0 billion yen and consolidated operating profit of 5.5 to 6.0 billion yen, with an operating profit margin of 15%+, versus FY 2025/9 consolidated revenue of 28.12 billion yen, operating profit of 3.81 billion yen and an operating profit margin of 13.6%. To support the plan, LIFULL issued a total of 40,600 units of share acquisition rights to executives and employees: for LIFULL Co., Ltd. employees and directors and employees of consolidated subsidiaries, exercise is set at 50% for FY 2028/9 consolidated operating profit of 5.5 billion yen or more and 100% at 6.0 billion yen or more, while the tranche for LIFULL Co., Ltd. executives requires FY 2028/9 consolidated operating profit of 6.0 billion yen or more.

Topics

LIFULL highlights AI and generative AI as a central theme across consumers, real estate professionals and internal operations. Consumer-facing features include AI Homes-kun BETA (LINE version), AI-based image search for new builds, and 3D floor plans; services for real estate professionals include AI home staging, automatic de-listing of unreliable properties and DX partnerships, including data sharing with Housecom, Nomura Real Estate Solutions and TSUKURUBA and a home appraisal service with generative AI developed with WILL Co., Ltd. Internally, the company states that over 90% of employees use AI tools in their work, citing 31,600 business hours saved in six months and improvements in revenue per person of 14.2% and approximately 2x in operating profit per person (based on LIFULL Co., Ltd. non-consolidated revenue and operating profit using total headcount including temporary personnel as of September 30, 2025). As of September 30, 2025, LIFULL had capital of 9,726 million yen, 134,380,704 shares issued (including 6,245,406 shares of treasury stock) and 1,037 consolidated employees (including 119 temporary and 108 overseas), and is listed on the TSE Prime Market.

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.