Breaking Down Kakaku.com, Inc. Financial Health: Key Insights for Investors

Curious how Kakaku.com's latest figures reshape the investment case? Q2 FY2026 revenue surged ¥22,903 million - a 22.8% YoY jump driven by Tabelog and a standout 67.2% revenue rise at Kyujin Box, even as operating profit slipped to ¥6,555 million (down 7.1%) and the operating margin contracted to 28.6% from 35.7% as the company prioritizes growth investments; net income for the six months was ¥9,368 million (‑2.3% YoY) with EPS at ¥47.36 (‑2.4%), total assets stood at ¥87,526 million and equity at ¥60,466 million giving a robust equity ratio of 69.1%, cash and equivalents were ¥40,872 million (a decline of ¥9,987 million from the prior quarter), while market data as of Dec 12, 2025 shows a stock price of ¥2,221.50, market cap ~¥439.49 billion, trailing P/E 25.92 and forward P/E 21.19 with analyst price target at ¥2,855 - read on to explore valuation metrics, liquidity, debt structure, risks from aggressive investment in Kyujin Box, and the company's mid-term plan targeting a 5-year CAGR of 13% to ¥143 billion in FY30/3.}

Kakaku.com, Inc. (2371.T) Revenue Analysis

• Revenue (Q2 FY2026): ¥22,903 million (+22.8% YoY)
• Kyujin Box revenue growth: +67.2% YoY
• Operating profit (Q2 FY2026): ¥6,555 million (-7.1% YoY)
• Operating profit margin: 28.6%
• Five-year mid-term CAGR target: 13% (FY30/3 revenue target: ¥143,000 million)

• Primary revenue drivers: expansion of Tabelog monetization, rapid scaling of Kyujin Box, and steady demand for price-comparison services.
• Profitability pressure: higher SG&A and growth investments (marketing, product development, platform expansion) compressing operating margin in the near term.
• Strategic implication: current revenue mix and investment cadence are aligned with the mid-term plan but create short-term margin volatility.

Kakaku.com, Inc. (2371.T) - Profitability Metrics

• Operating profit margin (Q2 FY2026): 28.6% - down from 35.7% in Q2 FY2025 due to elevated investments.
• Six months ending September 30, 2025 - Net income: ¥9,368 million (‑2.3% YoY).
• Six months ending September 30, 2025 - EPS: ¥47.36 (‑2.4% YoY).
• Profit margin (latest reported): 25.54%.
• Operating margin (latest reported): 33.24%.
• Dividend policy: Annual dividend ¥80.00 per share (includes special dividend ¥30.00).
• ROE (3‑year forecast): 40.1%.

Kakaku.com, Inc. (2371.T) - Debt vs. Equity Structure

• Equity ratio: 69.1% (strong equity buffer against shocks)
• Total assets: ¥87,526 million (9/30/2025)
• Total equity: ¥60,466 million (9/30/2025)
• Revised year-end dividend forecast: ¥80.00 per share for FY ending 3/31/2025
• Debt-to-equity ratio: low - limited long-term borrowings and conservative leverage
• Strategic investments (notably Kyujin Box) have increased operating expenditures, weighing on near-term profitability

Kakaku.com, Inc. (2371.T) - Liquidity and Solvency

• Cash and cash equivalents (end Q2 FY2026): ¥40,872 million (down ¥9,987 million QoQ, driven by increased strategic investments).
• Current ratio: 1.9x - indicating sufficient short-term assets to cover current liabilities.
• Quick ratio: 1.6x - reflecting strong immediate liquidity without reliance on inventory.
• Operating cash flow: positive, supporting operations and continued investments (operating cash flow YTD: ¥12,500 million).
• Debt-to-equity ratio: low at 0.15x - limited financial leverage and reduced solvency risk.

• Implication: The liquidity buffer and low leverage give Kakaku.com the flexibility to continue investing in growth opportunities (product development, M&A, marketing) while maintaining financial stability.
• Investor consideration: Monitor quarterly cash burn related to investments and any shifts in working capital that could affect the current and quick ratios.

Kakaku.com, Inc. (2371.T) - Valuation Analysis

• Stock price: ¥2,221.50
• Market capitalization: ≈ ¥439.49 billion
• Trailing P/E: 25.92
• Forward P/E: 21.19
• Price-to-Sales (P/S): 6.63
• Price-to-Book (P/B): 8.41
• EV/Revenue: 6.16
• EV/EBITDA: 14.30
• Analyst consensus: Buy; price target: ¥2,855.00

• The trailing P/E of 25.92 vs. forward P/E of 21.19 signals expected earnings improvement that should reduce the multiple if projections hold.
• P/S of 6.63 and EV/Revenue of 6.16 place Kakaku.com in line with other consumer-facing internet platforms that command revenue premiums for user engagement and monetization potential.
• P/B of 8.41 reflects significant intangible value (brand, data, network effects) and investor willingness to pay above book value.
• EV/EBITDA at 14.30 suggests a moderate premium for cash-generation capability; investors are paying for growth stability rather than deep discount.

Kakaku.com, Inc. (2371.T) - Risk Factors

• Growth-investment drag on profitability: Increased investments in Kyujin Box and adjacent product development have elevated operating expenses, compressing operating profit margins and producing uneven quarterly profitability.
• Market sensitivity to earnings momentum: The aggressive investment cadence has elicited mixed market reactions, with share-price volatility tied to quarterly operating-profit beats/misses.
• Macro and consumer-demand risk: Slower consumer spending or an economic downturn in Japan could depress advertising, listing fees and transaction-related revenue across price-comparison, marketplace and recruitment services.
• Competitive pressure: Intense competition from other domestic platforms, global marketplaces and specialized vertical players could erode Kakaku.com's pricing power, user engagement and monetization rates.
• Regulatory exposure: Changes to Japanese online marketplace, advertising, data-protection or labor-related regulation could increase compliance costs or limit certain revenue models.
• FX and international exposure: Although predominantly Japan-focused, any cross-border transactions or partnerships expose results to JPY exchange-rate fluctuations - impacting revenue translated into JPY and costs for outsourced services.

• Profitability: Higher SG&A and development costs tied to Kyujin Box reduce operating leverage and extend the payback period on user-acquisition spending.
• Shareholder sentiment: Repeated quarters of margin compression can pressure valuation multiples, particularly if investors expect slower monetization from new services.
• Revenue concentration: Heavy reliance on domestic consumer spend and advertising/listing revenue makes near-term top-line sensitive to Japan's GDP and household consumption trends.
• Execution risk: Failure to convert Kyujin Box investments into sustained user growth or ARPU increases would compound short-term earnings dilution.

• Phased rollouts and metric gating for new features - reduces wasted spend but may delay revenue realization.
• Cross-selling across Kakaku.com properties to lift LTV - dependent on successful UX integration and low churn.
• Cost discipline in legacy segments to offset investment-led margin pressure - execution may be challenging if demand weakens.

• Quarterly operating profit and margin trends vs. investment-run rates for Kyujin Box.
• Customer-acquisition cost (CAC) and lifetime value (LTV) dynamics within new services.
• Advertising/listing revenue growth vs. Japanese consumer expenditure indicators (retail sales, consumer confidence).
• Any announcements on regulatory guidance or labor/advertising rule changes in Japan.
• FX translation effects if cross-border partnerships expand.

Kakaku.com, Inc. (2371.T) - Growth Opportunities

• Kyujin Box job recruitment platform: projected 5-year CAGR of 25%, representing a high-growth segment that can materially boost marketplace and ad-driven revenues if user acquisition and monetization scale as expected.
• LiPLUS integration with Kakaku.com's Kurashi Support: expands the company's addressable market into home support, recurring-service revenues and cross-sell opportunities across existing user bases.
• New business segments and geographic expansion: diversification into adjacent services and selective overseas markets can reduce reliance on core comparison-shopping revenue and open new revenue streams.
• Strategic partnerships and acquisitions: targeted M&A or alliances can accelerate time-to-market for new services and broaden distribution (e.g., fintech, home services, HR-tech partners).
• Technology and innovation investment: continued spending on UI/UX, AI-driven personalization, recommendation engines and mobile engagement is central to increasing time-on-platform and average revenue per user (ARPU).

• If Kyujin Box achieves a 25% CAGR, its revenue contribution can compound rapidly - doubling roughly every 3 years - materially improving group margins through higher-margin recruitment and subscription revenues.
• Hit-and-scale economics from LiPLUS-enabled Kurashi Support could transform one-time transaction flows into recurring service revenues, improving revenue visibility and customer lifetime value.
• Allocating incremental capex/R&D to personalization and AI can lift conversion metrics across comparators, classifieds and services; even modest ARPU uplifts (e.g., +5-10%) would significantly enhance top-line trajectory implied by the mid-term plan.