Rakumachi FY2026 Earnings Analysis: Achieving a 52.5% Operating Margin, Accelerating YouTube/AI Strategies, and Expanding Recurring Revenue for 5 Consecutive Years of Double-Digit Growth

Rakumachi, Inc., operator of the real estate investment platform "Rakumachi," reported strong financial results for the fiscal year ended July 2026 (FY2026). The company exceeded its initial forecasts, driven by steady growth in its core recurring revenue model and the rapid expansion of tie-up video advertising centered on its YouTube channel. The company maintained an exceptionally high operating profit margin of 52.5% , once again demonstrating its robust earnings structure.

This report summarizes 10 key topics disclosed in the company's earnings presentation, providing a detailed analysis of performance trends, KPI shifts, new initiatives, and future growth prospects.

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1. FY2026 Earnings Highlights and Exceeding Targets

For the fiscal year ended July 2026, operating revenue rose 14.5% year-on-year to 3.617 billion yen, operating profit increased 23.0% to 1.899 billion yen, ordinary profit grew 21.9% to 2.132 billion yen, and net profit rose 22.7% to 1.436 billion yen. Compared to the initial full-year forecasts (operating revenue of 3.5 billion yen, operating profit of 1.8 billion yen, ordinary profit of 2.0 billion yen, and net profit of 1.308 billion yen), the company exceeded targets across all profit categories. Since its listing, the company has consistently outperformed its ordinary profit forecasts in every period for which it provided guidance (with an average upside of +6.9% over the last five fiscal years).

The slide above provides an earnings summary covering consolidated results and key KPIs for FY2026. It confirms not only double-digit growth in both sales and profits but also strong expansion in the platform's pillars: "number of member stores," "number of members," and "YouTube subscribers."

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2. Steady Expansion of the Recurring Revenue Business

Recurring revenue, which accounts for approximately 70% of the company's revenue structure, continues to perform strongly:

• Property Listing Service Revenue: 1.803 billion yen (+10.3% YoY)
• Number of Property Listing Member Stores: 5,921 stores (+12.6% or +662 stores YoY)
• Proposal Service Revenue: +23.9% growth YoY

As the number of member stores increases, the comprehensiveness of investment properties listed on the platform improves, creating a virtuous cycle that attracts even more investor users.

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3. Expansion of Member Base (Surpassing 500,000) and Repeat Structure

The number of members reached 507,000, an increase of 10.0% (+46,000) year-on-year , surpassing the 500,000 milestone. Increased brand awareness as a platform specializing in real estate investment, combined with the media expansion described below, has contributed to the influx of new members. Because real estate investors continue to use the platform for additional purchases and asset management after their initial acquisition, the company benefits from a structural advantage of "lower customer acquisition costs" compared to residential or rental portals.

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4. Expansion of Media Power: The Rise of "Rakumachi RAKUMACHI" on YouTube

Subscribers to the official YouTube channel "Rakumachi RAKUMACHI" grew by 34.5% (+427,000) to 1.66 million (reaching 1.71 million as of the end of August 2026). With monthly views exceeding 100 million in some months, the channel has recorded over 1.3 billion total views. It has established itself as one of Japan's top business and investment channels, functioning as a powerful hub for member acquisition.

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5. Rapid Growth of New Monetization Pillar: "Tie-up Video Ads"

Leveraging the overwhelming reach of its YouTube channel, the "tie-up video advertising" business, which began in earnest in FY2026, has been a major driver of growth for the overall advertising service segment (+12.7% YoY).

As shown in the slide above, by pursuing content that is "entertaining even as an advertisement," tie-up videos have achieved high engagement, with an average of approximately 280,000 views (about 1.6 times that of regular videos). The number of videos released reached 28 for the full year (2.3 times the previous year). Notably, the company has successfully acquired a wide range of major clients beyond traditional real estate firms, including the Tokyo Metropolitan Government's Bureau of Environment, Hiroshima Gas, Sumitomo Mitsui Trust Asset Management, Lifenet Insurance, LIXIL, freee, and nosh, spanning finance, government, IT, and lifestyle sectors. In August 2026 alone, the first month of FY2027, the company released 9 videos, significantly outpacing the same month last year (2 videos), marking it as a new pillar of growth.

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6. Enhancing Competitiveness and Efficiency through AI Implementation

The company is prioritizing the use of AI to improve organizational strength and service convenience:

• Launch of "AI Rent Simulation" (August 2026): In partnership with Nihon Joho Create Co., Ltd., the AI calculates appropriate rent and market trends in about 10 seconds simply by entering property information. This aims to increase the value of the paid "Rakumachi Premium" service and drive member acquisition.
• "Automatic Sales Document Reading Function" (September 2026, Beta): By simply uploading a sales document, the AI automatically analyzes up to 29 items, including property name, price, and yield, and inputs them into the listing form. This significantly reduces the administrative burden on real estate companies and aims to further expand the number of listed properties.

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7. Service Expansion into Finance and Deepening User Touchpoints

Starting in August 2026, the company opened its seminar listing service to non-real estate firms such as securities companies, establishing a new "Financial Investment Seminar" category. This addresses the broader asset management needs of real estate investors (stocks, bonds, investment trusts, etc.) and creates new revenue opportunities by expanding the sales target to the financial industry.

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8. Financial Strategy: Generating Non-Operating Income via USD-Denominated Bonds

The company utilizes its surplus funds to hold approximately 4 billion yen in USD-denominated bonds with ratings of BBB or higher (including 9 issues from Mitsubishi UFJ Financial Group, Mizuho Financial Group, Barclays, etc.). The average acquisition rate is 150.14 yen/dollar, with an average coupon rate of approximately 5.5% (per annum), providing stable interest income. This bond management generates approximately 200 million yen in annual interest income, significantly boosting ordinary profit (2.132 billion yen) above operating profit (1.899 billion yen).

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9. Robust Shareholder Returns: 6 Consecutive Years of Dividend Increases and Share Buybacks

Backed by strong performance, the company continues its proactive shareholder return policy:

• Dividend Policy: For FY2026, the company paid an annual dividend of 13 yen (payout ratio of 20.0%, a 30% increase YoY). For the next fiscal year (FY2027), it plans to pay 16 yen per share (+23.1% increase YoY) , marking 6 consecutive years of dividend increases.
• Share Buybacks: During FY2026, the company conducted three share buybacks, acquiring a total of approximately 1.228 million shares for approximately 1.42 billion yen.

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10. FY2027 Earnings Outlook and Growth Story

For the full fiscal year ending July 2027, the company forecasts operating revenue of 4.0 billion yen (+10.6% YoY), operating profit of 2.1 billion yen (+10.6% YoY), ordinary profit of 2.324 billion yen (+9.0% YoY), and net profit of 1.52 billion yen (+5.8% YoY).

The slide above shows the earnings forecast for FY2027 and the underlying assumptions. The company's initial forecast is based on conservative assumptions , primarily driven by the accumulation of recurring revenue, which accounts for about 70% of the total. In addition to the stable growth of its core property listing and proposal services, the company plans to incorporate the expansion of tie-up video ads into other industries, while accounting for costs related to hiring and AI investment. The company aims for 5 consecutive years of double-digit revenue growth since its founding and maintaining a high operating profit margin of 52.5%.

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Conclusion

Rakumachi's FY2026 earnings results prove that while maintaining a solid recurring revenue base and high operating margins, the "second revenue engine" of YouTube-based tie-up video advertising has successfully taken off. Looking toward FY2027, the company has outlined a solid and diversified growth story that combines improved convenience for member stores and investors through AI, expansion into the financial sector, stable bond interest income, and proactive shareholder returns.