LogProstyle Reports First Half Fiscal Year 2026 Results

TOKYO--( BUSINESS WIRE)-- LogProstyle Inc. (NYSE American: LGPS) (the “Company” or “LogProstyle”), a leading real estate renovation and resale, development, hotel and restaurant management company, today announced its first half fiscal year 2026 financial results for the period ended September 30, 2025. References in this earnings release to “JPY” or “¥” refer to Japanese yen and “US$” refers to United States dollars. Convenience translations included in this earnings release of Japanese yen into United States dollars have been made at the exchange rate of ¥147.97 = US$1.00, which was the foreign exchange rate on September 30, 2025.

First Half Fiscal Year 2026 Summary

(First half fiscal year 2026 results for the six-month period ended September 30, 2025, compared to the comparable six-month period of 2024)

Results Summary for the First Half Fiscal Year 2026

(US$ and ¥ in millions except per share data)

1H FY2026 ($USD)

1H FY2026 (¥JPY)

1H FY2025 (¥JPY)

YoY Change

Revenue

US$69.8

¥10,324

¥10,518

(2)%

Gross Profit

US$14.8

¥2,196

¥1,750

25%

Gross Margin

21.3%

16.6%

463 bps

Operating Income

US$6.0

¥884

¥673

31%

Operating Margin

8.6%

6.4%

217 bps

Net Income

US$3.3

¥494

¥369

34%

Basic EPS

US$0.14

¥20.90

¥17.05

¥3.85

Diluted EPS

US$0.14

¥20.68

¥17.05

¥3.63

Yasuyuki Nozawa, Representative Director, President and CEO of LogProstyle said, “Our performance in the first half of fiscal year 2026 demonstrates the resilience of our business model and the continued progress across our core real estate and hospitality business lines. Despite modest revenue declines, we delivered material margin expansion and profit generation, largely attributed to disciplined cost management and proven track record navigating the Japanese real estate market. We are pleased with the performance of our hospitality business, with robust inbound tourism driving improved occupancy and higher average daily rates. As we look ahead to the back-half of the year, we remain focused on strengthening our balance sheet, accelerating our development pipelines, and enhancing operational efficiency. Our strategic priorities remain centered on long-term sustainable growth and value creation for our shareholders.”

Financial highlights:

Revenue for the first six months of fiscal year 2026 in the period ended September 30, 2025, reached JPY10,324 million (US$69.8 million), declined slightly by 2% compared to JPY10,518 million in the year ago period. Real estate generated JPY9,498 million (US$64.2 million) in revenue, roughly stable versus JPY9,627 million in the year ago period. The moderate decline in real estate revenue was driven primarily by a reduction in the number of units sold, partially offset by an increase in sales of new real estate development projects. Hotel revenue of JPY642 million (US$4.3 million), increased by 10.7% compared to JPY580 million in the comparable year-ago period. Revenue growth was driven by an increase in occupancy rates from 68.2% to 70.8% in the six months ended September 30, 2025, and the higher average daily rates which increased from JPY19.6 thousand (US$130) to JPY21.4 thousand (US$140).

Gross profit increased by 25% to JPY2,196 million (US$14.8 million), up from JPY1,750 million, with gross margin expanding by 463 basis points to 21.3% from 16.6% in the prior year period. The gross margin expansion was supported by diligent cost controls and pricing power, partially offset by lower revenue.

Operating expenses increased by 22% to JPY1,311 million (US$8.9 million) from JPY1,077 million in the prior-year period. The increase in operating expenses was driven by costs associated with being a public company, and higher payroll costs. Operating income reached JPY884 million (US$6 million), an increase of 31% compared with JPY673 million in the comparable year-ago period. Operating margin expanded by 217 basis points to 8.6%, up from 6.4%, supported by stable revenue and rigorous expense management.

Net income for the first six months of fiscal year 2026 reached JPY494 million (US$3.3 million), up 34% compared with the JPY369 million in the year-ago period. Basic earnings per share increased by ¥3.85 to ¥20.90 (US$0.14) from ¥17.05, and diluted earnings per share increased by ¥3.63 to ¥20.68 (US$0.14) from ¥17.05.

EBITDA reached JPY927 million (US$6.3 million), up 28% from JPY723 in the year ago period of fiscal 2025. EBITDA margin expanded by 210 basis points to 9.0% from 6.9% in the year ago period.

Cash and cash equivalents of JPY1,161 million (US$7.8 million) at September 30, 2025, compared with JPY2,121 million at March 31, 2025.

Operational highlights:

LogProstyle Inc.

CONSOLIDATED BALANCE SHEETS

(Yen in thousands, except share data)

September 30,2025

March 31,2025

(unaudited)

ASSETS

Current assets

Cash and cash equivalents

1,161,203

2,120,515

Trade notes and accounts receivable, net

97,590

138,373

Inventories, net

15,036,477

13,612,387

Consumption tax receivable

137,380

5,749

Short-term investments

156,214

182,030

Other current assets

536,948

353,579

Total current assets

17,125,812

16,412,633

Non-current assets

Property, plant and equipment, net

424,770

357,527

Operating lease right-of-use assets

4,246,457

4,481,941

Software

25,349

27,792

Leasehold and guarantee deposits

395,137

465,968

Deferred tax assets

435,123

458,767

Other non-current assets

776,860

363,608

Allowance for credit losses

(75,044

)

(84,048

)

Total non-current assets

6,228,652

6,071,555

Total assets

23,354,464

22,484,188

LIABILITIES

Current liabilities

Accounts payable

303,760

597,708

Accrued expenses

148,554

112,661

Short-term loans

1,861,566

1,885,259

Current portion of bonds

6,323

28,620

Current portion of long-term loans

4,001,512

4,025,343

Operating lease liabilities, current

475,229

463,129

Finance lease liabilities, current

8,019

8,400

Contract liabilities

91,659

252,260

Income taxes payable

256,081

248,885

Other current liabilities

176,528

254,956

Total current liabilities

7,329,231

7,877,221

Non-current liabilities

Bond

38,720

Long-term loans

8,010,676

6,858,607

Operating lease liabilities, non-current

3,863,265

4,090,933

Finance lease liabilities, non-current

15,228

19,062

Other non-current liabilities

126,351

121,146

Total non-current liabilities

12,054,240

11,089,748

Total liabilities

19,383,471

18,966,969

SHAREHOLDERS’ EQUITY

Common shares: 81,498,000 shares authorized, 23,652,110 shares issued and 23,628,452 shares outstanding as of September 30, 2025 and March 31, 2025 with no stated value.

924,817

Capital surplus

1,445,333

Additional paid in capital

(197,466

)

(238,115

)

Retained earnings

1,813,103

1,397,387

Treasury shares

(2,539

)

(2,539

)

Accumulated other comprehensive loss

(12,255

)

(9,664

)

Total shareholders’ equity

3,970,993

3,517,219

Total liabilities and equity

23,354,464

22,484,188

LogProstyle Inc.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Yen in thousands, except share and per share data)

For the Six Months Ended September 30,

2025

2024

Revenue:

10,324,388

10,518,468

Cost of revenue

(8,128,849

)

(8,768,666

)

Gross profit

2,195,539

1,749,802

Operating expenses

Selling, general and administrative expenses

(1,311,386

)

(1,077,092

)

Total operating expenses

(1,311,386

)

(1,077,092

)

Operating income

884,153

672,710

Other income (expenses):

Interest expenses

(126,237

)

(109,535

)

Other income, net

5,301

5,871

Total other expenses

(120,936

)

(103,664

)

Income before income taxes

763,217

569,046

Income tax expenses

(268,798

)

(199,891

)

Net income

494,419

369,155

Other comprehensive income (loss)

Foreign currency translation adjustment

(2,591

)

(9,114

)

Total comprehensive income

491,828

360,041

Earnings per share:

Basic

20.90

17.05

Diluted

20.68

17.05

Weighted average number of shares of common stock outstanding

Basic

23,652,110

21,652,110

Diluted

23,906,208

21,652,110

LogProstyle Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Yen in thousands)

For the Six Months Ended September 30,

2025

2024

Cash flows from operating activities:

Net income

494,419

369,155

Depreciation and amortization

42,794

50,249

Amortization of debt issuance costs

32,222

34,665

Stock-based compensation expenses

40,649

Deferred income taxes

23,644

95,736

Provision of allowance for credit losses

(9,004

)

Changes in operating assets and liabilities:

Decrease in trade notes and accounts receivable, net

40,783

51,518

(Increase) decrease in inventories, net

(1,424,090

)

1,339,815

(Increase) decrease in consumption taxes receivable

(131,631

)

22,899

(Increase) decrease in prepaid expenses

(195,177

)

12,795

(Increase) in advances to vendors

(9,313

)

(42,793

)

Decrease (increase) in leasehold and guarantee deposits

70,831

(7,875

)

(Increase) decrease in long-term prepaid expenses

(406,129

)

125

Increase in accounts payables

38,018

943

Increase (decrease) in accrued expenses

35,893

(100,303

)

Increase in income taxes payable

7,196

42,200

(Decrease) in contract liabilities

(160,601

)

(59,719

)

Increase in deposits received

28,773

12,060

Other, net

(59,989

)

71,689

Net cash flows (used in) provided by operating activities

(1,540,712

)

1,893,159

Cash flows from investing activities:

Purchase of short-term investments

(30,064

)

(118,000

)

Proceeds from sales of short-term investments

55,880

73,800

Purchases of property, plant and equipment, net

(104,682

)

(32,745

)

Purchases of software

(2,584

)

(15,963

)

Purchases of long-term investments

(270,000

)

Purchases of investments in capital

(3,270

)

(1,220

)

Other, net

(77

)

Net cash flows used in investing activities

(84,720

)

(364,205

)

Cash flows from financing activities:

(Decrease) increase in short-term borrowings, net

(20,681

)

127,254

Borrowings from long-term loans

7,180,708

4,633,208

Repayments for long-term loans

(6,030,730

)

(6,728,724

)

Proceeds from issuance of bonds

50,000

Redemption of bonds

(28,620

)

(24,640

)

Payments for finance leases

(4,216

)

(4,148

)

Payment for debt issuance costs

(68,504

)

(15,304

)

Payments for dividends

(78,703

)

Payments of listing expenses

(331,966

)

(100,180

)

Net cash flows provided by (used in) financing activities

667,288

(2,112,534

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(1,168

)

2,830

Net (decrease) in cash and cash equivalents

(959,312

)

(580,750

)

Cash and cash equivalents at the beginning of period

2,120,515

1,218,241

Cash and cash equivalents at the end of period

1,161,203

637,491

SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid for interest

279,310

255,293

Cash paid for taxes

260,665

67,666

Cash refund for taxes

884

3,348

LogProstyle Inc.

REVENUE BY BUSINESS SEGMENT

(US$ and ¥ thousands)

Six Months Ended September 30,

2025 ($)

2025 (¥)

2024 (¥)

YoY %

Real Estate

64,190

9,498,243

9,627,373

(1.3

Hotel

4,340

642,236

579,914

10.7

Other

1,243

183,909

311,181

(40.9

Total Revenue

69,773

10,324,388

10,518,468

(1.8

LogProstyle Inc.

Reconciliation of Operating Income to EBITDA

(US$ and ¥ in million)

Six Months Ended September 30,

2025 ($)

2025 (¥)

2024 (¥)

Operating income

884

673

Depreciation and amortization

0.3

EBITDA

6.2

927

723

EBITDA is a non-GAAP financial measure. Management believes that EBITDA provides useful information for investors to evaluate the Company’s operating performance and cash-generating ability. It is also used by management for internal purposes, including performance evaluation and budgeting. EBITDA is not a measure defined under US-GAAP or IFRS and may not be comparable to similar metrics disclosed by other companies.

Forward-Looking Statements Disclaimer:

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the Company’s future financial performance, operating results, business strategy, capital resources, liquidity, development pipeline, operational efficiency, and long-term growth objectives. These statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties include, but are not limited to, changes in economic conditions, real estate and hospitality market conditions, interest rate fluctuations, construction and development risks, cost inflation, regulatory changes, foreign exchange fluctuations, and other risks related to the Company’s business operations, and other factors described in the Company’s filings with the U.S. Securities and Exchange Commission, including the risks detailed in the Company’s annual report on Form 20-F filed with the SEC on July 7, 2025. Forward-looking statements speak only as of the date they are made and the Company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this press release, except as required by applicable law. Any references to our website have been provided as a convenience, and the information contained on such website is not incorporated by reference into this press release.

About LogProstyle Inc.

LogProstyle Inc. is involved in a wide range of businesses, including real estate development, hotel management, and restaurant management. With the slogan "redefine life style," the Company is working on various projects with the aim of illustrating an innovative and sustainable lifestyle. LogProstyle is the first unlisted Japanese company to list its Japanese common shares directly on a major United States stock exchange rather than through American Depositary Receipts (ADRs).