Moi Corp. (5031) Q2 FY2027 Earnings Deep Dive: Structural Revenue Reform, Growth in Recurring Income, and Business Foundation Rebuilding via Capital Alliance

Moi Corp. (Securities Code: 5031) released its Q2 FY2027 (interim) financial results , demonstrating a steady transition in its business model. The company is actively responding to shifts in the live-streaming market and changing user behavior among casual segments by focusing on "shifting toward high-value loyal users," "expanding recurring revenue," and "improving profit margins through the reduction of payment processing fees." Furthermore, the company has disclosed strategic actions aimed at enhancing long-term corporate value, including a capital and business alliance with SBI Holdings and initiatives in advanced technology sectors.

This report provides a detailed analysis of the earnings highlights, key KPI trends, transformation of the revenue structure, cost and financial foundations, progress against full-year forecasts, and future growth strategies based on the disclosed materials.

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1. Q2 FY2027 Earnings Highlights

For the first half of the fiscal year ending January 2027, Moi reported net sales of ¥3.181 billion (down 3.8% YoY, 6.0% below plan) and an operating profit of ¥122 million (down 16.5% YoY, 23.5% below plan) .

As shown in the slide above, the primary factor behind the revenue decline was a shift in usage patterns among casual users due to changes in the competitive landscape, leading to a decrease in point-purchasing users (Point PUs) and point sales. However, Point ARPPU (Average Revenue Per Paying User) rose significantly to ¥8,052 (up 12.2% YoY) due to the sustained engagement of loyal users, indicating a successful shift toward a more profitable user base.

Additionally, "Membership revenue," a monthly subscription model, grew steadily to ¥305 million (up 12.4% YoY) . While operating profit declined YoY due to lower sales and one-time costs associated with office relocation and capital increases, the company achieved an increase in real gross profit—a metric reflecting intrinsic profitability—to ¥988 million (up 8.3% YoY) , driven by the reduction in payment processing fees resulting from a lower app-based payment ratio.

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2. Analysis of Key Business KPIs: Shifting from Casual to Loyal Users

Structural changes are clearly evident in the trends of point purchases, which remain the primary revenue source for TwitCasting.

In the quarterly transition (Q2 FY27 standalone), the average monthly Point PUs decreased to 55,000 (down 17.4% YoY) . Conversely, the average monthly Point ARPPU reached ¥8,100 (up 9.2% YoY) , continuing to hit record highs.

This data confirms that while there is an outflow of light-spending users, the consumption appetite of core fans and loyal users who remain on the platform is intensifying . This can be analyzed as a transition from a phase of expanding the total user base to a phase of maximizing per-user engagement and LTV (Lifetime Value).

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3. Growth Trends in Recurring Revenue (Membership and Others)

To improve business stability, Moi is focusing on expanding "Memberships (fan club-style monthly subscriptions)" and "Premier Streams," which do not rely on one-off point purchases.

• Total Revenue excluding point sales : Expanded to ¥214 million in Q2 FY27 (up 12.3% YoY) .
• Revenue Composition : The ratio of non-point sales revenue steadily rose to 13.7% (up 2.4pt YoY) .
• Membership GMV (Gross Merchandise Value) : Reached ¥610 million in Q2 FY27 (up 10.5% YoY) .
• Membership KPIs : Average monthly PUs grew to 118,000 (up 1.5% YoY) , and average monthly ARPPU rose to ¥1,716 (up 8.9% YoY) .

Functionality enhancements—such as PayPay integration, the addition of X (formerly Twitter) follow management features, and the unlocking of premium plans for student streamers via "Membership U"—have successfully improved convenience for both creators and fans, fostering a robust recurring revenue base.

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4. Transformation of Profit Structure: Real Gross Profit Margin Hits Record High

The most notable progress in the company's revenue structure is the significant improvement in "Real Gross Profit (Net Sales - Cost of Sales - Payment Processing Fees)."

Real gross profit for Q2 FY27 standalone was ¥506 million (up 7.3% YoY) , and the real gross profit margin reached a record high of 32.2% (up 4.4pt YoY) .

In the platform business, high commission rates charged by in-app purchases on the App Store and Google Play have been a major factor in squeezing profits. By promoting shifts to web-based payments and diversifying payment methods, Moi successfully reduced the app payment ratio, leading to a dramatic decrease in payment processing fees to ¥554 million for the first half of FY27 (down 28.4% YoY) . Even with a slight downward trend in net sales, the structural reform to increase retained gross profit is yielding steady results.

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5. Cost Structure Breakdown and Strengthening of Financial Foundation

The cost structure and B/S status for the first half of FY2027 are as follows:

• Cost of Sales (Creator Rewards) : ¥1.637 billion (up 1.3% YoY). The creator payout ratio is on an upward trend.
• Infrastructure Costs : ¥232 million (down 12.8% YoY). Reduced through the leveling of peak traffic.
• Organizational Strengthening Costs (Personnel, etc.) : ¥336 million (up 10.5% YoY). Increased due to regular salary raises and capital increase-related expenses.
• Marketing Expenses : ¥102 million (up 92.7% YoY). Aggressive investment for future scale expansion.

Financially, due to the capital increase conducted in June 2026, net assets increased to ¥3.016 billion (up ¥1.043 billion from the end of the previous fiscal year) , and the equity ratio improved significantly to 59.7% (up 13.3pt) . With cash and deposits of ¥3.824 billion, the company has built a solid financial foundation to support future growth investments and technological development.

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6. Full-Year Earnings Forecast and Progress

The full-year consolidated earnings forecast for FY2027 remains unchanged:

• Net Sales : ¥6.829 billion (up 2.1% YoY) [Progress: 46.6% ]
• Operating Profit : ¥409 million (up 20.5% YoY) [Progress: 29.9% ]
• Ordinary Profit : ¥461 million (up 18.4% YoY) [Progress: 39.3% ]
• Net Income : Undecided (due to the assessment of the recoverability of deferred tax assets)

Although the progress rate for operating profit appears low at 29.9%, this is due to the front-loading of one-time costs related to office relocation and capital increases, as well as marketing investments in the first half. The company plans to focus on further reducing payment processing fees and implementing measures to recover the top line and improve profit margins, centered on membership revenue, in the second half.

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7. Mid-to-Long-Term Growth Strategy: "Expanding Culture" x "Expanding Economy"

To achieve sustainable growth, Moi is promoting a flywheel model that combines community-driven "organic growth" with "inorganic growth" utilizing external partnerships.

① Capital and Business Alliance with SBI Holdings

By collaborating with the SBI Group's financial service infrastructure, global network, and media/entertainment businesses, Moi aims to build a "Neo-Media Ecosystem" centered on IP (Intellectual Property). Expectations include the advancement of creator support infrastructure and the creation of new monetization models.

② Expansion of the Creator Ecosystem (UUUM Partnership & Real Exhibitions)

Through joint initiatives with UUUM to promote interaction among creators, hosting the real-world exhibition "Katsudousha-ten," and releasing beauty filter features, the company is working to increase creator satisfaction and attract new fans.

③ Advanced Technology Development with Kyoto University's CiRA

As an application of next-generation AI foundation technology, Moi has jointly filed a patent for "Biological-LLM Interface Technology," which fuses iPS cell-derived neural response data with Large Language Models (LLMs). The company is developing a dialogue system that imparts "biological fluctuations and a sense of life" to autonomous AI, with an eye toward the long-term social implementation of AI technology and its application in the entertainment and communication sectors.

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Conclusion

In Q2 FY2027, Moi demonstrated a clear qualitative shift in its revenue structure amidst the maturation and intensifying competition of the live-streaming market, characterized by "higher per-user spending," "growth in subscription-based (membership) revenue," and "significant improvement in real gross margin through reduced payment fees." With a solid financial foundation following the completed capital increase and a strategic alliance with SBI Holdings as leverage, the company's progress toward achieving its full-year plan and expanding its ecosystem in the mid-to-long term remains a key point to watch.