Gurunavi, Inc. (TSE: 2440) reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Revenue rose 5.0% year-on-year to ¥14,132 million, while operating profit climbed 52.7% to ¥400 million from ¥262 million. Ordinary profit advanced 41.2% to ¥368 million, and net profit attributable to owners of the parent rose 11.9% to ¥236 million, the company's third consecutive small annual profit. Basic earnings per share came in at ¥4.18, up from ¥2.00. Comprehensive income more than doubled, rising 113.9% to ¥266 million.
A second year of margin recovery
The headline story is the continued recovery in profitability. With revenue growth held to a modest 5.0%, the 52.7% jump in operating profit was driven by cost discipline that lifted margins rather than by top-line expansion. Operating profit reached ¥400 million, the strongest level in years, and the third straight small net profit underscores that the operator of one of Japan's leading restaurant-information and reservation websites — affiliated with the Rakuten group — has stabilised after a difficult stretch. Revenue continues to come from two pillars: restaurant subscriptions and promotion on the one hand, and a membership and loyalty business on the other.
Balance sheet steady, but operating cash flow dips
Total assets stood at ¥10,911 million and net assets at ¥5,243 million, leaving the equity ratio at a comfortable 47.7%, up from 44.3% a year earlier. Book value per share was ¥92.35. Operating cash flow, however, was a small negative −¥172 million, a reminder that the reported accounting profit did not fully translate into cash during the year. The company declared no dividend (¥0), keeping capital on hand as it prepares to invest.
FY27 guidance: revenue grows, but back into the red
The outlook is where the tone shifts sharply. For FY3/2027, Gurunavi guides revenue of ¥15,100 million (+6.8%) — continued top-line growth — but a deliberate return to losses: an operating loss, an ordinary loss, and a net loss attributable to owners of about −¥1,000 million, equivalent to EPS of −¥17.74. The first-half FY3/2027 plan already embeds an operating loss and a net loss of roughly −¥675 million on revenue of ¥6,820 million. Management frames the swing as a strategic step-up in investment to renew and strengthen the platform, accepting near-term losses to position the business for longer-term growth.
The investment trade-off
The juxtaposition is stark: a business that has just delivered its best operating result in years, with a healthy equity ratio approaching 50%, is choosing to forgo near-term profit in favour of a renewal push. For investors, the FY3/2027 guidance reframes FY3/2026 not as the start of a profit-growth trajectory but as a base from which the company is willing to spend. The size of the guided net loss — roughly ¥1.0 billion against the ¥236 million profit just booked — signals that the planned investment is material relative to the company's current earnings power, and execution on that renewal will be the key variable to watch.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥M) | 14,132 | 13,458 | +5.0% |
| Operating profit (¥M) | 400 | 262 | +52.7% |
| Ordinary profit (¥M) | 368 | 261 | +41.2% |
| Net profit attrib. to owners (¥M) | 236 | 211 | +11.9% |
| Basic EPS (¥) | 4.18 | 2.00 | +109.0% |
| Equity ratio | 47.7% | 44.3% | +3.4pp |
| FY27 revenue guidance (¥M) | 15,100 | — | +6.8% |
| FY27 net guidance (¥M) | -1,000 | — | Loss |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.