5025.T

• Company Vision and Core Competency

  • The company's vision is to transform the real estate industry through Big Data and Technology, leveraging 30 years of accumulated condominium data to deliver real estate marketing platform services
  • Core competitive advantage comes from a proprietary, high-barrier data asset: the company captures nearly 100% of all available condominium properties, updates data for customer use by the next business day after acquisition, and maintains high data accuracy via a dedicated internal cross-check quality control process
  • As of August 2025, the company holds 30 years of cumulative data for ~65,000 condominium buildings (2.88 million units), plus a strengthened rental residential database covering 1.86 million buildings (9.09 million units) with over 170 million rental listing records

• Recent Product Updates

  • Launched the new "Appraisal Report" feature integrated into the core Realnet Mansion Summary service, which uses proprietary algorithms to predict market value based on surrounding new and resale condominium transaction data, enabling fast, simple site screening for early-stage land acquisition
  • Converted the existing client-server Realnet Rental Summary to a SaaS model and added it to the Realnet service lineup, improving user accessibility
  • Improved search speed for Realnet Mansion Summary by 4x to 5x, cutting search time for 2,000 properties from 15 seconds to 3.8 seconds and for 4,500 properties from 26.3 seconds to 5.7 seconds, greatly improving usability

• Balance Sheet and Cost Update

  • Current assets (led by accounts receivable) increased alongside revenue growth; intangible fixed assets (software) decreased due to ongoing depreciation; current liabilities decreased due to payment of current period corporate tax and consumption tax, and a reduction in accounts payable
  • Large-scale feature expansion for the company's SaaS products (started in the 2023 February fiscal year) is complete, so the company expects a significant reduction in depreciation expense starting this fiscal period

• No changes to the company's original full fiscal year growth strategy; the company will continue prioritizing expansion of its SaaS (Summary Net) product line and sales expansion for CGM advertising
• For the Platform business: In the new condominium segment (which already holds high market share), customer count is expected to remain flat long-term, with growth driven by ARPU expansion via cross-selling across business lines and expansion of recurring/usage-based services. In the resale condominium segment, growth will come from new customer acquisition, cross-selling to existing customers, and service expansion leveraging the strengthened rental database. The company will target ARPU growth by embedding usage-based pricing for high-usage existing members
• For the Digital Marketing business: The company will continue prioritizing CGM advertising, targeting growth in listing volumes by increasing support for large developers with large property portfolios. CGM advertising delivers high conversion (38% of inquiries result in completed viewing bookings) and high margins, so expanding CGM will shift the entire Digital Marketing business to a higher-margin business model, driving overall profit growth
• Overall first half revenue reached 49% of the full year guidance, and operating profit reached 44% of full year guidance (pulled down by higher-than-planned selling, general and administrative expenses), with performance broadly in line with plan

Total cumulative revenue for the first half of the 2026 February fiscal year is 791 million yen, up 7% year-over-year. Operating profit is 48 million yen, up 30% year-over-year. Platform business accounts for 65% of total revenue: it grew year-over-year overall, with the new condominium segment growing 0.9% YoY, and the resale condominium segment growing 16.7% YoY driven by new data service contracts. In the new condominium segment, average customer price per user increased 2.4% YoY, customer count remained flat, MRR (total quarterly subscription revenue) rose 1% YoY, and churn increased 0.17pp YoY but remains at a low level. Digital Marketing business accounts for 31% of total revenue, growing 11% YoY: all service lines grew, with CGM advertising growing 59% YoY driven by increased client acquisition of large developers with large property portfolios. Other business accounts for 4% of total revenue, down 2% YoY overall: the Town Mansion Plus (DM) service declined 35% YoY due to lower order volumes.

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