CROOZ, Inc. (TSE: 2138), the Tokyo-based internet group that has rebuilt itself around e-commerce, staffing services and a fast-growing hotel-conversion property business, reported consolidated results for the first quarter of the fiscal year ending March 2027 (April 1 to June 30, 2026) under Japanese GAAP. Revenue rose 36.5% to ¥3,784 million, reversing a 21.7% decline a year earlier, but the company slipped further into the red at every line: an operating loss of ¥99 million (against a ¥90 million loss), an ordinary loss of ¥277 million (against ¥189 million) and a net loss attributable to owners of the parent of ¥211 million (against ¥159 million). The loss per share widened to ¥22.12 from ¥16.70, and comprehensive loss came to ¥200 million.
Growth on every front line
The revenue jump was broad-based across the five reporting segments the group adopted this quarter. Nursing-care staffing was the standout, with revenue up 222.8% to ¥521 million; the call-centre, recruitment and placement business grew 50.4% to ¥725 million; engineer staffing rose 27.3% to ¥1,192 million; the Ada. e-commerce business added 21.6% to ¥1,152 million; and the flagship hotel-conversion segment grew 36.7% to ¥192 million. A reporting change also helped: from the start of this quarter CROOZ began treating its investment real estate as an operating business, moving rental income and rental costs out of non-operating items and into revenue, cost of sales and SG&A. That shift alone added ¥147 million to revenue and ¥35 million to operating profit.
Why the losses got bigger
Scale, not weakness, is what pushed the loss out. CROOZ says the quarter carried front-loaded costs tied to expanding the hotel-conversion and nursing-care staffing operations, and that those costs fell within the range assumed in its opening plan. Segment profit tells the story: the five reporting segments together earned ¥25 million, but ¥124 million of unallocated corporate overhead turned that into the ¥99 million operating loss. Two segments were loss-making — nursing-care staffing at a ¥50 million loss (worse than the prior year's ¥37 million) and the call-centre and recruitment cluster at a ¥47 million loss (against ¥21 million) — as headcount and set-up spending ran ahead of billings. Below the operating line, the gap widens further: ¥111 million of non-operating expenses, dominated by interest on the debt financing the property portfolio, plus investment-partnership losses, took the ordinary loss to ¥277 million. Depreciation also rose to ¥66 million from ¥52 million.
A property-heavy balance sheet
Total assets ended the quarter at ¥31,085 million, up ¥284 million from the March 2026 year-end, driven by a ¥798 million increase in fixed assets as more buildings enter the conversion pipeline. Liabilities rose ¥485 million to ¥22,427 million: the group redeemed ¥500 million of bonds but drew ¥916 million more in long-term borrowings. Net assets fell ¥201 million to ¥8,657 million on the quarterly loss, leaving shareholders' equity at ¥8,551 million and the equity ratio at 27.5%, down from 28.4%. The gearing is the direct cost of a strategy that buys ageing small and mid-sized Tokyo buildings and converts them into hotels rather than developing from scratch.
The full-year swing to profit still hinges on the second half
CROOZ left its FY3/2027 forecast untouched: revenue of ¥18,000 million (+52.3%), an operating profit of ¥608 million against this quarter's loss, ordinary profit of ¥159 million, net profit of ¥48 million and EPS of ¥5.08. The bridge from a first-quarter loss to a full-year profit rests on timing rather than a margin turnaround: hotel-conversion income is booked in a lump when a building is sold, making quarterly results inherently volatile, and the group's other businesses skew their earnings to the second half. The mechanism was on display the same day — subsidiary CROOZ Asset resolved on August 5 to sell a converted hotel, office and retail property in Yoyogi, Shibuya-ku, Tokyo, with handover due in September 2026. Buyer and price are confidential, but the company disclosed the sale price exceeds 10% of FY3/2026 consolidated revenue of ¥11,820 million, with a profit contribution above ¥188 million at the ordinary line and ¥94 million at the net line. That gain is already embedded in the unchanged guidance — which means the forecast leaves little cushion if the September handover slips or if the front-loaded staffing costs persist into the second half.
No dividend
CROOZ forecasts a ¥0.00 annual dividend for FY3/2027, unchanged from FY3/2026 and unrevised from its previous guidance, as it directs cash into building the hotel portfolio.
| Metric | Q1 FY3/2027 | Q1 FY3/2026 | Change |
|---|---|---|---|
| Revenue (¥ million) | 3,784 | 2,772 | +36.5% |
| Operating loss (¥ million) | -99 | -90 | Loss widened |
| Ordinary loss (¥ million) | -277 | -189 | Loss widened |
| Net loss attrib. to owners (¥ million) | -211 | -159 | Loss widened |
| Loss per share (¥) | -22.12 | -16.70 | Loss widened |
| Total assets (¥ million, vs FY3/2026 year-end) | 31,085 | 30,800 | +0.9% |
| Net assets (¥ million, vs FY3/2026 year-end) | 8,657 | 8,858 | -2.3% |
| Equity ratio (%, vs FY3/2026 year-end) | 27.5 | 28.4 | -0.9pt |
| FY3/2027 revenue guidance (¥ million) | 18,000 | 11,820 | +52.3% |
| FY3/2027 operating profit guidance (¥ million) | 608 | — | Return to profit |
| Annual dividend (¥) | 0.00 | 0.00 | Unchanged |
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.