Rebase,Inc. Q4 FY2025 earnings call

Core Business Growth & Market Position

• The rental space market has a clear seasonal pattern, with H2 revenue weighted higher than H1, as Q3 (October-December) is the peak season for demand and customer awareness. All core KPIs hit new all-time highs in the 2025 fiscal year, with consistent steady growth.
• Growth is currently led by expanding business usage demand, which has continued to grow post-pandemic as more companies return to in-office work and face widespread meeting room shortages. Instabase offers a full range of spaces from single-person work booths to large conference rooms to address this unmet need.
• The company's corporate account feature, which enables unified booking and payment management for entire organizations, has been adopted by firms across multiple industries including life insurance, and the company will continue to refine the product to serve users from independent contractors to large corporations.

Strategic Investments

• The company has approved an office relocation as a strategic investment funded by internal reserves, to support its next phase of growth. The new office will be 3x larger than the current space, supporting planned headcount growth, maximizing organizational productivity, creating a more creative collaborative environment, and providing surplus space for R&D for existing and new business lines. Management concluded current market conditions make this the optimal timing for the move.
• M&A investment priority is targets that can deliver clear synergy with Instabase, followed by targets that enable expansion into new business areas to open up new growth opportunities.

Product Strategy

• Instabase's 4-pillar growth strategy focuses on: strengthening customer acquisition, optimizing UI/UX, increasing average order value, and maximizing the number of listed spaces. In the 2025 fiscal year, the company prioritized the first two pillars, which delivered the strong growth in space usage. New initiatives included adding new payment methods to improve booking experience, strengthening alliance partnerships, and launching promotional campaigns to expand user touchpoints. The company also expanded listings of clear, easy-to-understand leisure spaces (gyms, studios, golf practice spaces) and business-focused spaces to meet growing demand.

Market Outlook

• The shared rental space market is expected to see rapid long-term growth, driven by both demand and supply side factors. Demand is growing due to diversification in work styles and leisure activities, while supply is growing due to increasing underutilized space from demographic trends and structural empty space problems in commercial real estate, which traditional rental models cannot efficiently solve. Rebase held ~2% market share in 2022, and plans to grow share alongside the overall market expansion.

Rebase operates a single core product segment: Instabase, its rental space platform. For the full 2025 March fiscal year, Instabase delivered total revenue of 1.926 billion yen, a 29% YoY increase. Gross transaction value (GTV, the segment's core metric) exceeded 1.7 billion yen, a 31% YoY increase, hitting 107% of the initial KPI target. Total space usage increased 33% YoY, with average price roughly flat YoY. Listed spaces on the platform reached 40,800 units, a 19% YoY increase. For Q4 2025, the segment generated revenue of 510 million yen, a 26% YoY increase, with 391,000 space usages, a new all-time high and 33% YoY increase. Operating profit for the full year was 487 million yen, a 45% YoY increase, with a 21% operating margin. Q4 operating profit was 109 million yen, a 39% YoY increase, with a 21% operating margin. Net profit for the full year was 59% YoY higher than the prior year, coming in 19% above the revised analyst forecast.

• For the 2026 March fiscal year, management guides 20% YoY revenue growth to 2.313 billion yen, and 1% YoY operating profit growth to 490 million yen, maintaining an operating margin above 20% at 21%.
• Excluding one-time office relocation related costs (a total of 130 million yen including overlapping double rent for the old and new office and brokerage fees), core operating profit would grow 27% YoY, showing strong underlying growth after absorbing these one-time costs.
• The company plans to continue prioritizing growth in space usage and total transaction value, with a focus on driving higher business usage and repeat usage through targeted marketing and product initiatives.

• The full Q&A section of the transcript was not included in the provided text, so no specific disclosed operational or market risks are available from the provided content. The only disclosed near-term cost impact is the one-time 130 million yen in relocation costs for the 2026 fiscal year.

The full Q&A transcript content was not included in the provided source material, so no question-and-answer exchanges can be summarized.