Adventure Inc. FY2026 Full-Year Financial Results: Returning to Profitability with ¥1.1 Billion Operating Income; Laying the Groundwork for the New Mid-Term Plan of ¥4 Billion Operating Income through App Expansion and Group Restructuring

Adventure Inc. (Securities Code: 6030) has achieved a significant recovery in its FY2026 full-year financial results , rebounding from the previous fiscal year, which was heavily impacted by one-time negative factors, to post an operating income of ¥1,100 million (a return to profitability) . Consolidated revenue remained resilient at ¥25,634 million (+1.0% YoY) , reflecting steady progress in optimizing the group structure and improving the profitability of its proprietary platform, "skyticket."

This report extracts 10 key topics from the recently released financial materials to provide a detailed analysis of the company's current status and future growth narrative.

---

1. Consolidated Financial Highlights: Return to Profitability and Variance from Plan

For the fiscal year ended June 2026, consolidated revenue stood at ¥25,634 million (1.4% below the company's forecast), with operating income of ¥1,100 million (38.9% below the forecast) and net income attributable to owners of the parent of ¥465 million . While the company achieved a significant turnaround from the previous year's operating loss of ¥1,155 million, the results fell short of the initial performance projections.

Slide Commentary: Why this consolidated P&L data is critical

The slide above provides the most essential data, offering an overview of Adventure's consolidated performance and the structure of its profit fluctuations . With the resolution of one-time factors from the previous fiscal year (FY2025), such as the ¥2,909 million impairment loss on Tabikobo and the repayment of employment adjustment subsidies, operating income saw a substantial improvement of ¥2,256 million YoY . Conversely, the shortfall against the company's plan (operating income of ¥1,800 million) was driven by upfront investment costs for system development and advertising in global markets at the parent company level, as well as declining demand for European and Middle Eastern tours at Tabikobo due to the deteriorating situation in the Middle East. This comparison of the consolidated P&L is crucial for understanding the dual nature of the results: the shedding of one-time factors versus the burden of upfront investments.

---

2. Performance of Adventure (Non-Consolidated) and Revenue Trends by Service

Looking at the performance of the group's core entity, Adventure Inc. (non-consolidated), revenue was ¥14,463 million (-10.6% YoY) , and operating income was ¥950 million (-47.7% YoY) .

In the revenue breakdown, the airline ticket business generated ¥9,384 million (-11.4% YoY) , and the tour business generated ¥2,522 million (-7.3% YoY) , both experiencing declines. These were caused by temporary delays in system integration following new system implementations by airlines and missed demand due to the Osaka-Kansai Expo. On the other hand, the car rental business grew steadily to ¥1,015 million (+18.3% YoY) , and the express bus business reached ¥846 million (+2.8% YoY) , indicating progress in diversifying revenue sources beyond specific travel products.

---

3. Efficiency in Advertising Expenses and Rapid Rise in App Booking Ratio

The key to improving profit margins for the non-consolidated business lies in marketing efficiency (shifting toward organic customer acquisition) .

Slide Commentary: Impact of leading indicators showing structural reform

This slide illustrates the trends in two key indicators (advertising-to-gross-profit ratio and app booking ratio) that guarantee future margin improvements for Adventure. As the left graph shows, the advertising-to-gross-profit ratio peaked at 61% in FY2024 and has entered a downward trend, reaching 60% in FY2026 . More importantly, the right graph shows that the app booking ratio is rising sharply , indicating a significant increase in customer acquisition via the app. Users who utilize the app have a high repeat rate and, because they do not come through search-linked advertising, the Customer Acquisition Cost (CAC) is extremely low . The improvement in the app booking ratio is the most reliable leading indicator for achieving high gross and operating margins that do not rely on web advertising, confirming that the company's management foundation is shifting from "ad-dependent" to "fan-accumulation" model.

---

4. Performance Analysis of Key Group Companies: Tabikobo, Ayavex, and Five Star

The contribution of group companies acquired through M&A is increasing annually. The gross profit composition of acquired companies has grown to account for approximately 20% of the group total .

• Tabikobo Co., Ltd. : Although growth in its core European travel business slowed due to the Middle East situation, revenue expanded to ¥4,766 million (+28.0% YoY) . The operating loss narrowed from ¥352 million in the previous year to ¥168 million , indicating that structural reforms toward profitability are underway.
• Ayavex Inc. : Leveraging strong inbound demand and its strengths in arrangement capabilities (land operator services), the company achieved remarkable high growth with revenue of ¥3,212 million (+36.0% YoY) and operating income of ¥369 million (+25.5% YoY) .
• Five Star Corporation : Engaged in web-based customer acquisition and management for accommodations, primarily in Okinawa, it contributed significantly to group profits with revenue of ¥911 million (+9.4% YoY) and operating income of ¥216 million (+24.0% YoY) .

---

5. Portfolio Restructuring and Divestiture of Unprofitable Businesses

In line with its mid-term management plan, the company is actively streamlining and divesting businesses with weak synergies or those that are unprofitable. The company has signed a share transfer agreement (pre-closing) for HELLO1010 SDN. BHD. , a Malaysian SIM card/eSIM provider acquired in July 2024. Additionally, it has completed the transfer to third parties of two other entities: Singaporean Wi-Fi rental provider UR COMMUNICATIONS PTE LTD. (Yoowifi) and Silkway Travel Asia PTE LTD. , which handles MICE and group travel. This demonstrates a clear intent to concentrate management resources on the core OTA business and high-growth subsidiaries.

---

6. Strengthening Governance and Ensuring Compliance

The company is steadily strengthening the governance of group companies where issues had previously arisen. In particular, Tabikobo has refreshed its top management and implemented a reconstruction of internal controls to prevent recurrence. The company is strongly promoting the reinforcement of its corporate division to meet the requirements for the Tokyo Stock Exchange to lift the "Securities on Alert" designation. Simultaneously, a compliance training program has been launched across the entire Adventure group to establish a foundation for sustainable growth.

---

7. Sound Financial Base and Policy for Improving Capital Efficiency (ROE)

On the consolidated balance sheet, the company maintains a robust cash position with ¥13,263 million in cash and cash equivalents . The equity ratio remains at 32% , and the Net D/E ratio is -0.4x , indicating a net-cash position and a very healthy financial state. Backed by ample liquidity and financing capacity, the company plans to continue pursuing M&A with high synergies while simultaneously improving asset efficiency to enhance ROE (Return on Equity) .

---

8. FY2027 Full-Year Performance Forecast: Outlook for Significant Profit Growth

For the FY2027 full-year consolidated performance forecast, the company plans revenue of ¥26,000 million (+1.4% YoY) , operating income of ¥2,000 million (+81.8% YoY) , and net income attributable to owners of the parent of ¥1,100 million (+136.6% YoY) .

In addition to an expected 2% improvement (efficiency gain) in the advertising-to-revenue ratio due to an increase in organic users (strengthening SEO/GEO and improving the app booking ratio) , the company anticipates achieving profitability at Tabikobo and maintaining high growth through strengthened PMI (Post-Merger Integration) for Ayavex and Five Star Corporation.

---

9. New Mid-Term Management Plan: 3-Year Numerical Targets and Roadmap

The company has announced a new 3-year mid-term management plan aimed at enhancing corporate value over the medium to long term.

Slide Commentary: Profit growth roadmap toward becoming a global OTA

The slide above outlines the core growth targets for the 3-year consolidated plan (FY2027–FY2029) . The plan presents an ambitious profit growth scenario, aiming for operating income of ¥2.0 billion in FY2027 , ¥3.0 billion in FY2028 (revenue of ¥29.0 billion) , and ¥4.0 billion in FY2029 (revenue of ¥32.0 billion) . The driving force behind this growth is the expansion of profit margins through increased organic repeat rates for "skyticket" in the domestic market and the expansion of transaction volume in global markets, starting with Southeast Asia. The most important implication of this data is that it is a profitability improvement story that aims to more than double operating income in three years (from ¥1.1 billion to ¥4.0 billion) , rather than just scaling up revenue.

---

10. Market Environment and Competitive Advantage of "skyticket" (Toward a Global OTA)

The external environment supporting this growth includes the rising online penetration rate in the Japanese travel market (projected to grow from 44% in 2019 to over 60% by 2027) , the steady recovery of inbound demand, and the rapid growth of the travel market in Southeast Asia due to the expansion of the middle class.

Adventure's "skyticket" possesses strong competitive advantages, including localization features for multiple languages and currencies, direct NDC/API connections with domestic and international airlines, and a high cross-sell rate driven by its app base, which has surpassed 25 million downloads . Leveraging these strengths, the company is establishing its position as a global OTA centered on the rapidly growing Asian market, while using profits from the domestic travel market as its foundation.

---

Summary and Future Focus Points

Adventure's FY2026 financial results mark a departure from the previous year's one-time losses, recovering to an operating profit of ¥1.1 billion and strongly signaling the normalization of management and the transition to the next growth phase. Moving forward, the key points for assessing the company's corporate value will be: (1) the effect of advertising cost suppression through a further rise in the app booking ratio , (2) the achievement of full profitability at Tabikobo and sustained growth of M&A subsidiaries like Ayavex , and (3) progress toward the first-year target (FY2027) of ¥2.0 billion in operating income, as set out in the new mid-term plan .