LogProstyle Reports Fiscal Year 2026 Results

Key Terms

adjusted ebitda financial

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

operating margin financial

Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

average daily rate (adr) financial

Average daily rate (ADR) measures the average amount of money a hotel or lodging business earns for each occupied room over a given time period. Investors use it like a price-per-unit signal — similar to the average ticket price at a movie theater — to gauge a property’s pricing strength, demand trends and how changes in room rates may affect overall revenue and profit potential.

effective tax rate financial

The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.

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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 financial results for the fiscal year ended March 31, 2026. References in this earnings release to “JPY” or “¥” are to Japanese yen and “US$” is to United States dollar. Convenience translations included in this earnings release of Japanese yen into United States dollars have been made at the exchange rate of ¥159.08 = US$1.00, which was the foreign exchange rate on March 31, 2026. Highlights for the 2026 period compared to 2025 include:

• Total revenue of JPY22,221 million (US$140 million) for the fiscal year of 2026, up 7.6% compared with JPY20,651 million (US$130 million) in fiscal year 2025.
• Real estate revenue of JPY20,600 million (US$129 million) increased by 9.5% over the previous year.
  • The number of real estate units sold was 261 units, an increase of 74 units from the previous year.
• Hotel revenue reached JPY1,310 million (US$8 million), up 4.9% from the previous year.
• Gross profit reached JPY4,408 million (US$28 million), an increase of 23.9% from fiscal year 2025.
• Operating income was JPY1,572 million (US$10 million), up 17.1% from JPY1,343 million (US$8 million). Operating margin improved from 6.5% to 7.1%.
• Net income increased 0.8% to JPY760 million (US$5 million) from JPY754 million (US$5 million).
• Basic and diluted earnings per share stood at JPY32.16 (US$0.20), declining JPY2.60 (US$0.02) from the previous fiscal year.
• Adjusted EBITDA reached JPY1,644 million (US$10 million), up 10.6% from JPY1,487 million (US$9 million).

Reconciliation of Net Income to Adjusted EBITDA
(US$ and ¥ in millions)

		Years Ended March 31,
		2026				2026				2025
Net income		US$ 4.8				¥	760			¥	754
Tax expense		US$ 3.1				¥	491			¥	395
Other income, net		US$ (0.1)				¥	(9)			¥	(16)
Interest expense		US$ 2.1				¥	329			¥	210
Depreciation and amortization		US$ 0.5				¥	72			¥	144
Adjusted EBITDA		US$ 10.3				¥	1,644			¥	1,487

Adjusted EBITDA is a non-GAAP financial measure. We define “Adjusted EBITDA” as net income before interest expense, tax expense, depreciation and amortization, further adjusted to exclude other income, net and other specific charges that management believes are not indicative of our ongoing operating performance. Management believes that Adjusted 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.

Adjusted EBITDA is not a measure defined under US-GAAP or IFRS and may not be comparable to similar metrics disclosed by other companies.

Results Summary for Fiscal Year 2026

	US$ and ¥ (in millions except per share data and percentages)
		2026	2026	2025	% Change
Revenue		US$140	¥22,221	¥20,651	+7.6%
Gross Profit		US$28	¥4,408	¥3,559	+23.9%
Gross Margin		19.8%	19.8%	17.2%	+2.6pt
Operating Income		US$10	¥1,572	¥1,343	+17.1%
Operating Margin		7.1%	7.1%	6.5%	+0.6pt
Net Income		US$5	¥760	¥754	+0.8%
Basic & Diluted EPS		US$0.20	¥32.16	¥34.76	¥(2.60)
Adjusted EBITDA		US$10	¥1,644	¥1,487	+10.6%

Yasuyuki Nozawa, Representative Director, President and CEO of LogProstyle said, "This fiscal year was another strong year for LogProstyle, marked by disciplined, sustainable growth across our core businesses. We delivered solid topline growth, led by continued momentum in real estate and steady growth in our hotel business, while meaningfully expanding our operating margin through the discipline we have brought to our cost structure. Reflecting our confidence in the business and our ongoing commitment to shareholder returns, our Board approved the initiation of a recurring quarterly cash dividend during the year. As we look ahead to fiscal year 2027, we remain committed to continued innovation, operational excellence, and disciplined execution of our strategy. I am grateful to our dedicated employees, partners, and customers for their trust and support as we work to redefine life style and build long-term value for our shareholders."

Financial highlights:

Revenue for the fiscal year ended March 31, 2026 reached JPY22,221 million (US$140 million), an increase of 7.6% versus the year ago period of 2025. Real estate generated JPY20,600 million (US$129 million) in revenue, up 9.5% compared with JPY18,819 million in the year ago period, driven primarily by an increase in the number of units sold. Hotel revenue reached JPY1,310 million (US$8 million), an increase of 4.9% versus JPY1,249 million in the same period of 2025. Revenue growth from the hotel segment was supported by an increase in average daily rate (ADR) compared to fiscal year 2025. Other revenue for the fiscal year 2026 was JPY311 million (US$2 million).

Gross profit increased by 23.9% to JPY4,408 million (US$28 million) in fiscal year 2026, up from JPY3,559 million in 2025, with gross margin improving 2.6 percentage points to 19.8% from 17.2% in fiscal year 2025.

Operating expenses increased by 28.0% to JPY2,837 million (US$18 million) from JPY2,217 million in fiscal year 2025. This increase was primarily attributable to higher costs associated with maintaining our status as a listed company and the expansion of our investor relations (IR) activities, as well as an increase in corporate enterprise tax resulting from the increase in stated capital. Operating income in fiscal year 2026 was JPY1,572 million (US$10 million), an increase of 17.1% compared with the JPY1,343 million in fiscal year 2025. Operating margin of 7.1% improved from 6.5% in fiscal year 2025, supported by revenue growth and diligent expense management.

Income before taxes increased by 9.0% to JPY1,251 million (US$8 million) from JPY1,148 million in the previous fiscal year. Net income for fiscal year 2026 amounted to JPY760 million (US$5 million), up 0.8% year on year, marking a second consecutive year of earnings growth. However, the rate of growth was more moderate than that of income before taxes. This was primarily attributable to an increase in interest expense, which rose from JPY210 million to JPY329 million, reflecting both higher borrowings to support growth investments and rising interest rates. In addition, the effective tax rate increased from 34.4% to 39.3%, mainly due to the impact of the retained earnings tax and other factors, resulting in income taxes increasing from JPY 395 million to JPY 491 million. These factors were both associated with business expansion and the accumulation of retained earnings. As reflected in the growth of operating profit and income before taxes, the earning power of our core business continued to improve steadily.

Basic and diluted earnings per share decreased by ¥2.60 (US$0.02) to ¥32.16 in fiscal year 2026. This was attributable to the increase in the weighted average number of shares outstanding resulting from the issuance of new shares in connection with the Company's IPO in March 2025.

Adjusted EBITDA reached JPY1,644 million (US$10 million) in fiscal year 2026, up 10.6% over fiscal 2025.

Cash and cash equivalents were JPY2,282 million (US$14 million) on March 31, 2026 compared with JPY2,121 million on March 31, 2025.

Summary by Business Segment:

Revenue from the Real estate segment, which accounted for approximately 93% of total revenue, increased 9.5% year on year to JPY20,600 million. The total number of properties sold rose by 74 units to 261, compared with 187 units in the previous fiscal year. Sales of whole residential buildings to institutional investors (PROSTYLE WEALTH) expanded significantly to 127 units from 78 in the previous fiscal year. In addition, we sold 93 income-generating properties through LogLife and 41 renovated condominium units (LogSuite).

Revenue from the Hotel segment, which accounted for approximately 6% of total revenue, increased 4.9% year on year to JPY1,310 million, driven primarily by higher average daily rates (ADR).

Operational highlights:

• In line with the Company’s ongoing commitment of returning value to shareholders, on July 13, 2026, the Board of Directors declared a cash dividend of US$0.046 per share, or US$1,086,047 in the aggregate. The cash dividend will be paid in installments on the respective payment dates to shareholders of record as of the close of business on each of the following record dates, with the shares trading ex-dividend on those same record dates.

Applicable quarter	Record date	Payment date	Dividend payable
FQ1	July 31, 2026	August 31, 2026	US$0.0115
FQ2	September 30, 2026	October 30, 2026	US$0.0115
FQ3	December 31, 2026	January 29, 2027	US$0.0115
FQ4	March 31, 2027	April 30, 2027	US$0.0115

Financial Results Presentation and Video:

As of July 13, 2026, the Company has posted the presentation materials and video discussing its fiscal year 2026 results. These can be found on the LogProstyle website at https://logprostyle.co.jp/ir-materials /

LogProstyle Inc.
CONSOLIDATED BALANCE SHEETS
(Yen in thousands)

		March 31, 2026				March 31, 2025
ASSETS
Current assets
Cash and cash equivalents		¥	2,281,913			¥	2,120,515
Trade notes and accounts receivable, net			161,247				138,373
Inventories, net			16,555,068				13,612,387
Consumption tax receivable			179,603				5,749
Short-term investments			331,484				182,030
Other current assets			485,136				353,579
Total current assets			19,994,451				16,412,633
Non-current assets
Property, plant and equipment, net			1,929,365				357,527
Operating lease right-of-use assets			4,059,263				4,481,941
Software			20,464				27,792
Leasehold and guarantee deposits			402,318				465,968
Deferred tax assets			440,688				458,767
Other non-current assets			191,602				363,608
Allowance for credit losses			(81,256	)			(84,048	)
Total non-current assets			6,962,444				6,071,555
Total assets		¥	26,956,895			¥	22,484,188

		March 31, 2026				March 31, 2025
LIABILITIES
Current liabilities
Accounts payable		¥	338,534			¥	597,708
Accrued expenses			131,848				112,661
Short-term loans			1,605,658				1,885,259
Current portion of bonds			6,318				28,620
Current portion of long-term loans			4,878,372				4,025,343
Operating lease liabilities, current			497,038				463,129
Finance lease liabilities, current			8,357				8,400
Contract liabilities			260,186				252,260
Income taxes payable			343,778				248,885
Other current liabilities			260,745				254,956
Total current liabilities			8,330,834				7,877,221
Non-current liabilities
Bonds			35,562				-
Long-term loans			10,584,054				6,858,607
Operating lease liabilities, non-current			3,647,248				4,090,933
Finance lease liabilities, non-current			12,768				19,062
Other non-current liabilities			131,170				121,146
Total non-current liabilities			14,410,802				11,089,748
Total liabilities		¥	22,741,636			¥	18,966,969
SHAREHOLDERS’ EQUITY
Common shares: 81,498,000 shares authorized, 23,652,110 shares issued and 23,610,870 and 23,628,452 shares outstanding as of March 31, 2026 and March 31, 2025 with no stated value.		¥	924,817			¥	924,817
Capital surplus			1,445,333				1,445,333
Additional paid in capital			(225,406	)			(238,115	)
Retained earnings			2,078,645				1,397,387
Treasury shares			(4,761	)			(2,539	)
Accumulated other comprehensive loss			(3,369	)			(9,664	)
Total shareholders’ equity			4,215,259				3,517,219
Total liabilities and equity		¥	26,956,895			¥	22,484,188

LogProstyle Inc.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Yen in thousands, except share and per share data)

		Fiscal Year Ended March 31, 2026				Fiscal Year Ended March 31, 2025				Fiscal Year Ended March 31, 2024
Revenue:		¥	22,221,163			¥	20,650,916			¥	14,121,840
Cost of revenue			(17,812,742	)			(17,091,646	)			(11,469,951	)
Gross profit			4,408,421				3,559,270				2,651,889
Operating expenses
Selling, general and administrative expenses			(2,836,841	)			(2,216,754	)			(1,713,388	)
Total operating expenses			(2,836,841	)			(2,216,754	)			(1,713,388	)
Operating income			1,571,580				1,342,516				938,501
Other income (expenses):
Interest expenses			(328,962	)			(209,971	)			(422,769	)
Other income, net			8,586				15,699				4,227
Total other expenses			(320,376	)			(194,272	)			(418,542	)
Income before income taxes			1,251,204				1,148,244				519,959
Income tax expenses			(491,243	)			(394,623	)			(196,354	)
Net income			759,961				753,621				323,605
Other comprehensive income (loss)
Foreign currency translation adjustment			6,295				7,656				(7,273	)
Total comprehensive income		¥	766,256			¥	761,277			¥	316,332
Earnings per share:
Basic and Diluted		¥	32.16			¥	34.76			¥	15.37
Weighted average number of shares of common stock outstanding
Basic and Diluted			23,627,697				21,679,507				21,053,384

LogProstyle Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Yen in thousands)

		Fiscal Year Ended March 31,2026				Fiscal Year Ended March 31,2025				Fiscal Year Ended March 31,2024
Cash flows from operating activities:
Net income		¥	759,961			¥	753,621			¥	323,605
Depreciation and amortization			72,077				144,087				87,027
Amortization of debt issuance costs			8,292				84,928				40,787
Stock-based compensation expense			12,709				-				-
Deferred income taxes			18,079				91,910				76,049
Provision of allowance for credit losses			(2,792	)			84,048				-
Changes in operating assets and liabilities:
(Increase) decrease in trade notes and accounts receivable, net			(22,874	)			43,435				(43,872	)
(Increase) in inventories, net			(2,942,681	)			(93,927	)			(2,944,684	)
(Increase) decrease in consumption taxes receivable			(173,854	)			63,639				239,859
(Increase) decrease in prepaid expenses			(104,298	)			(44,678	)			16,533
(Increase) decrease in advances to vendors			(17,743	)			(70,369	)			7,295
Decrease (increase) in leasehold and guarantee deposits			63,650				(119,560	)			(3,614	)
(Increase) decrease in long-term prepaid expenses			(86,754	)			(6,639	)			420
Increase (decrease) in accounts payables			72,493				(40,412	)			(194,318	)
Increase (decrease) in accrued expenses			19,187				(102,236	)			105,822
Increase (decrease) in income taxes payable			94,893				182,562				(48,438	)
Increase (decrease) in contract liabilities			7,926				(100,391	)			207,881
(Decrease) increase in deposits received			(18,665	)			20,510				(11,878	)
Other, net			38,630				(85,891	)			58,253
Net cash flows (used in) provided by operating activities			(2,201,764	)			804,637				(2,083,273	)
Cash flows from investing activities:
Purchase of short-term investments			(450,115	)			(367,150	)			(13,800	)
Proceeds from sales of short-term investments			300,662				223,921				50,000
Purchases of property and equipment			(1,634,243	)			(37,464	)			(42,145	)
Purchases of software			(2,584	)			(19,563	)			(3,186	)
Purchases of long-term investments			-				(270,000	)			-
Purchases of investment securities			-				-				(800	)
Proceeds from redemption of long-term investments			270,000				-				-
Other, net			(4,356	)			(5,599	)			(3,607	)
Net cash flows (used) in investing activities			(1,520,636	)			(475,855	)			(13,538	)
Cash flows from financing activities:
(Decrease) in short-term borrowings, net			(276,590	)			(685,830	)			(283,069	)
Borrowings from long-term loans			12,124,650				12,946,844				9,687,048
Repayments for long-term loans			(7,540,495	)			(12,708,107	)			(6,628,349	)
Proceeds from issuance of bonds			50,000				-				-
Redemption of bonds			(33,500	)			(49,270	)			(49,309	)
Payments for finance leases			(8,412	)			(8,664	)			(7,505	)
Payment for debt issuance costs			(20,221	)			(67,498	)			(78,844	)
Proceeds from issuance of shares			-				1,379,632				270,002
Payments for dividends			(78,703	)			-				-
Payments of listing expenses			(331,966	)			(235,037	)			-
Purchase of treasury shares			(2,222	)			-				-
Net cash flows provided by financing activities			3,882,541				572,070				2,909,974
Effect of exchange rate changes on cash and cash equivalents			1,257				1,422				(7,273	)
Net increase in cash and cash equivalents			161,398				902,274				805,890
Cash and cash equivalents at the beginning of the year			2,120,515				1,218,241				412,351
Cash and cash equivalents at the end of the year		¥	2,281,913			¥	2,120,515			¥	1,218,241
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest		¥	493,261			¥	476,650			¥	497,731
Cash paid for taxes		¥	405,140			¥	127,857			¥	179,888

LogProstyle Inc.
REVENUE BY BUSINESS SEGMENT
(Yen in thousands)

		Fiscal Year Ended March 31,2026				Fiscal Year Ended March 31,2025				YoY %
Real Estate		¥	20,600,359			¥	18,819,041				9.5 %
Hotel			1,310,224				1,248,784				4.9 %
Other			310,580				583,091				(46.7) %
Total Revenue		¥	22,221,163			¥	20,650,916				7.6 %

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, capital allocation, and shareholder return strategy. 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, general economic conditions, changes in market conditions 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 13, 2026. 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).

View source version on businesswire.com: https://www.businesswire.com/news/home/20260713947399/en/

LogProstyle Inc., Investor Relations, ir@logprostyle.co.jp
Alphaterra Advisory, Takuo Katayama, takuo.katayama@alphaterraadvisory.com

Source: LogProstyle Inc.