IR & Research Intelligence, Sessa Investment Research

Sessa Investment Research

IR & Research Intelligence

Sponsored research focusing on Japanese small cap.

Equity Bottom-Up

<ul><li>Q1 FY2026/9 Results Review: LIFULL Co., Ltd. (hereinafter, the Company) reported consolidated results for Q1 FY2026/9 with revenue increasing 8.3% YoY to JPY 6,993 mn and operating profit rising 42.1% YoY to JPY 1,177 mn, achieving both revenue and profit growth.</li><li>The operating profit margin improved 4.0 ppt to 16.8%. SG&amp;A expenses were kept in check, rising just 0.6% YoY.</li><li>However, the Company plans to increase its strategic investments from Q2, its peak season, and profit progress remains in line with plan. </li></ul>

Q1 FY2026/9 Results Review: LIFULL Co., Ltd. (hereinafter, the Company) reported consolidated results for Q1 FY2026/9 with revenue increasing 8.3% YoY to JPY 6,993 mn and operating profit rising 42.1% YoY to JPY 1,177 mn, achieving both revenue and profit growth.The operating profit margin improved 4.0 ppt to 16.8%. SG&amp;A expenses were kept in check, rising just 0.6% YoY.However, the Company plans to increase its strategic investments from Q2, its peak season, and profit progress remains in line with plan. 

Q1 Follow-Up: LIFULL (2120 JP) - March 12, 2026

<ul><li>Company Profile: LIFULL Co., Ltd. (hereafter, the Company) operates one of Japan’s largest real estate and housing information sites, LIFULL HOME’S, which works with real estate professionals across Japan to provide listings for rental and for-sale properties.</li><li>Emphasizing a user-first approach, it not only offers property information but also supports users’ decision-making through features such as information on living conditions by area, user reviews, and AI-driven recommendations.</li><li>Beyond real estate, the Company has expanded into new businesses, including LIFULL Kaigo, a matching platform for senior living facilities, and LIFULL Regional Revitalization, to meet a broad range of user needs. </li></ul>

Company Profile: LIFULL Co., Ltd. (hereafter, the Company) operates one of Japan’s largest real estate and housing information sites, LIFULL HOME’S, which works with real estate professionals across Japan to provide listings for rental and for-sale properties.Emphasizing a user-first approach, it not only offers property information but also supports users’ decision-making through features such as information on living conditions by area, user reviews, and AI-driven recommendations.Beyond real estate, the Company has expanded into new businesses, including LIFULL Kaigo, a matching platform for senior living facilities, and LIFULL Regional Revitalization, to meet a broad range of user needs. 

Lifull (2120 Jp) - Maximizing Group Synergies to Become the AI Leader in the Housing Sector

<ul><li>FY2025/9 Results Review: In FY2025/9, LIFULL Co., Ltd. (hereafter, the Company) completed the restructuring of the Overseas segment, establishing a structure focused on the domestic market.</li><li>Excluding the Overseas segment as discontinued operations, consolidated revenue increased 6.9% YoY to JPY 28,127 mn, and operating profit rose 26.1% YoY to JPY 3,815 mn.</li><li>Improvements in profit margins reflected more efficient advertising and operating expenses and enhanced sales activities. </li></ul>

FY2025/9 Results Review: In FY2025/9, LIFULL Co., Ltd. (hereafter, the Company) completed the restructuring of the Overseas segment, establishing a structure focused on the domestic market.Excluding the Overseas segment as discontinued operations, consolidated revenue increased 6.9% YoY to JPY 28,127 mn, and operating profit rose 26.1% YoY to JPY 3,815 mn.Improvements in profit margins reflected more efficient advertising and operating expenses and enhanced sales activities. 

Q4 Follow-Up - LIFULL (2120 JP) - December 23, 2025

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Thematic (Sector/Industry)

<div class="content-caption">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/128/848/original/2020-04-21_07-03-22.png?1587420235" class="editor-image img-responsive" data-smartkarma-image-id="128848"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/128/851/original/2020-04-21_07-07-10.png?1587420481" class="editor-image img-responsive" data-smartkarma-image-id="128851"></figure><div class="content-caption">Source • Japan Analytics</div>
</div>LATE ORDERS - All three of yesterday's results announcements were from Restaurants with February year-ends. These 'tail-enders' all swung into losses for the fourth quarter and did not make forecasts for the current year, which is becoming more the norm. The Sector as a whole still has a positive Results &amp; Revision Score supported by the Chinese and Take Out &amp; Delivery Peer Groups.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/128/853/original/2020-04-21_07-18-49.png?1587421152" class="editor-image img-responsive" data-smartkarma-image-id="128853"></figure><div class="content-caption">Source • Japan Analytics</div>In the DETAIL below, we shall briefly review Monday's ten revisions announcements.  The positive/neutral/negative balance was 3:1:6. Coating Machinery specialist <a href="https://www.smartkarma.com/entities/hirano-tecseed-co-kinzoku" target="_blank" data-smartkarma-citation="entities:11356:1" rel="noopener">Hirano Tecseed (6245 JP)</a> raised its dividend and now yields 4.2% while sporting a negative Enterprise Value (EV) of ¥-2.2b.


Source • Japan Analytics
LATE ORDERS - All three of yesterday's results announcements were from Restaurants with February year-ends. These 'tail-enders' all swung into losses for the fourth quarter and did not make forecasts for the current year, which is becoming more the norm. The Sector as a whole still has a positive Results &amp; Revision Score supported by the Chinese and Take Out &amp; Delivery Peer Groups.Source • Japan AnalyticsIn the DETAIL below, we shall briefly review Monday's ten revisions announcements.  The positive/neutral/negative balance was 3:1:6. Coating Machinery specialist Hirano Tecseed (6245 JP) raised its dividend and now yields 4.2% while sporting a negative Enterprise Value (EV) of ¥-2.2b. 

🇯🇵 JAPAN • Revisions & Results 20th April - Take Aways and LI(Not)FULL

ja research

ja research is an independent research platform focused exclusively on Japanese equities. Leveraging data and graphic analysis provided by Japan Analytics, we provide insights on small and medium-sized companies that have been ignored by the sell-side as well as challenging conventional wisdom on larger companies. We also offer analyst and corporate access, the latter with translation if required. 

<div class="content-caption">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/083/132/original/2019-03-25_18-58-11.png?1553507902" class="editor-image img-responsive" data-smartkarma-image-id="83132"></figure>Source: Japan Analytics
</div>There are currently 241 listed Japanese companies that can be categorised as Internet businesses. Our classification overlaps with the TOPIX-33 Information &amp; Communication sub-Sector but is broader in that it encompasses all companies listed on all sections and exchanges but is also narrower in that we have excluded Telecommunications (including <a href="https://www.smartkarma.com/entities/315" target="_blank" data-smartkarma-citation="entities:315:1">S</a><a href="https://www.smartkarma.com/entities/315" target="_blank" data-smartkarma-citation="entities:315:1">oftbank Group (9984 JP)</a>) and Information Technology companies. We have adopted a 'quantamental' approach which covers the long-term and current trends for Japan's Internet Sector as a whole, as well as eight sub-Sectors or Peer Groups and the Sectors' leading companies by market capitalisation.  Our focus is exclusively on the locally-listed universe and is based on disclosed financial and market data. We do not provide any forecasts, other than the companies' own forecasts and we do not attempt to make any business model or strategic judgments. Our focus is purely on financial and market performance. We do not cover unlisted and defunct companies such as Livedoor and, therefore, there is implicit survivor bias in the data. The broad themes that are developed in DETAIL below are grouped into six topics as follows: - • SUMMARY •  • FUNDAMENTAL OVERVIEW •  • SCORING - RESULTS &amp; REVISIONS / RELATIVE PRICE •  • RESULTS TRENDS •  • VALUATION • • RECOMMENDATIONS •<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/083/206/original/2019-03-25_17-46-58.png?1553565764" class="editor-image img-responsive" data-smartkarma-image-id="83206"></figure><div class="content-caption">Source: Japan Analytics</div>OVERVIEW - As will be covered in greater DETAIL below, Japan has failed to evolve a substantial Internet Sector and, in many business models, has been passed by global competitors including in the home market. Although Internet Sector revenues have grown steadily and now account for close to 1% of the total for all listed companies, operating margins have declined by half in the last seven years and are now only four percentage points higher than the market average. Accordingly, as measured by our Results &amp; Revision Score, the Sector is close to a twelve-year low. The market's response is an unchanged Sector weight in the market composite despite the addition of 111 new companies in the last six years, and a Relative Price Score that has moved in a narrow range over that period. The Sector averages disguise the weak business and market performance of a handful of Sector leaders as well as the overvaluation of the Sector's more successful business models, which is partly a result of a lack of alternatives. Despite the world's most significant Internet investor - <a href="https://www.smartkarma.com/entities/315" target="_blank" data-smartkarma-citation="entities:315:1">Softbank Group (9984 JP)</a>'s Vision Fund - being based in Japan, this fund and other global investors in Internet business have been right to give Japan a 'pass'.


Source: Japan Analytics
There are currently 241 listed Japanese companies that can be categorised as Internet businesses. Our classification overlaps with the TOPIX-33 Information &amp; Communication sub-Sector but is broader in that it encompasses all companies listed on all sections and exchanges but is also narrower in that we have excluded Telecommunications (including Softbank Group (9984 JP)) and Information Technology companies. We have adopted a 'quantamental' approach which covers the long-term and current trends for Japan's Internet Sector as a whole, as well as eight sub-Sectors or Peer Groups and the Sectors' leading companies by market capitalisation.  Our focus is exclusively on the locally-listed universe and is based on disclosed financial and market data. We do not provide any forecasts, other than the companies' own forecasts and we do not attempt to make any business model or strategic judgments. Our focus is purely on financial and market performance. We do not cover unlisted and defunct companies such as Livedoor and, therefore, there is implicit survivor bias in the data. The broad themes that are developed in DETAIL below are grouped into six topics as follows: - • SUMMARY •  • FUNDAMENTAL OVERVIEW •  • SCORING - RESULTS &amp; REVISIONS / RELATIVE PRICE •  • RESULTS TRENDS •  • VALUATION • • RECOMMENDATIONS •Source: Japan AnalyticsOVERVIEW - As will be covered in greater DETAIL below, Japan has failed to evolve a substantial Internet Sector and, in many business models, has been passed by global competitors including in the home market. Although Internet Sector revenues have grown steadily and now account for close to 1% of the total for all listed companies, operating margins have declined by half in the last seven years and are now only four percentage points higher than the market average. Accordingly, as measured by our Results &amp; Revision Score, the Sector is close to a twelve-year low. The market's response is an unchanged Sector weight in the market composite despite the addition of 111 new companies in the last six years, and a Relative Price Score that has moved in a narrow range over that period. The Sector averages disguise the weak business and market performance of a handful of Sector leaders as well as the overvaluation of the Sector's more successful business models, which is partly a result of a lack of alternatives. Despite the world's most significant Internet investor - Softbank Group (9984 JP)'s Vision Fund - being based in Japan, this fund and other global investors in Internet business have been right to give Japan a 'pass'. 

🇯🇵 Japan • Internet Sector Review - 'Japan Passing'

Japan

LIFULL Co., Ltd. offers real estate information services. The Company provides house rental information, house sale information, and more. LIFULL also operates internet advertising businesses.

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LIFULL (2120 JP)

Q1 Follow-Up: LIFULL (2120 JP) - March 12, 2026

LIFULL Co., Ltd. (hereinafter, the Company) reported consolidated results for Q1 FY2026/9 with revenue increasing 8.3% YoY to JPY 6,993 mn...

Sessa Investment Research

Lifull (2120 Jp) - Maximizing Group Synergies to Become the AI Leader in the Housing Sector

LIFULL Co., Ltd. (hereafter, the Company) operates one of Japan’s largest real estate and housing information sites, LIFULL HOME’S, which works...

Sessa Investment Research

Q4 Follow-Up - LIFULL (2120 JP) - December 23, 2025

In FY2025/9, LIFULL Co., Ltd. (hereafter, the Company) completed the restructuring of the Overseas segment, establishing a structure focused on the...

Sessa Investment Research

🇯🇵 JAPAN • Revisions & Results 20th April - Take Aways and LI(Not)FULL

LATE ORDERS - All three of yesterday's results announcements were from Restaurants with February year-ends. These 'tail-enders' all swung into...

Campbell Gunn

🇯🇵 Japan • Internet Sector Review - 'Japan Passing'

There are currently 241 listed Japanese companies that can be categorised as Internet businesses. Our classification overlaps with the TOPIX-33...

Campbell Gunn

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