Rebase,Inc. Q1 FY2026 earnings call

• Core Financial and Operational Performance

  • Revenue grew 20% year-over-year driven by consistent increases in space utilization, while operating income fell 34% year-over-year
  • The decline in operating income is attributed to strategic investments: expanded product development staffing and increased costs related to corporate office relocation, which management frames as necessary investment for future large-scale growth
  • The rental space market has a structural seasonality bias: the third quarter (Oct-Dec) is the peak busy season with the highest user demand and awareness, so full-year revenue is naturally concentrated in the second half of the fiscal year

• Strategic Product and Partnership Milestones

  • Launched a new dedicated plan through integration with Akerun, a third-party entry/exit management system
  • Onboarded new alliance partners One Career and WeWork to expand the firm's long-term growth foundation
  • Completed the acquisition of an equity stake in UpNow Inc. as of July 31, 2025, making UpNow an equity-method affiliate; UpNow develops and operates dedicated reservation systems exclusively for the rental space industry, which will allow Rebase to meet a broader range of customer needs

• Growth Strategy and Market Outlook

  • Rebase will continue to focus on four core priorities for Instabase growth: strengthening customer acquisition, optimizing UI/UX, improving average transaction price, and maximizing the number of listed spaces
  • The broader space sharing market is expected to see dramatic continued growth, driven by both demand and supply side factors: growing diversification of work styles and hobbies is expanding rental space demand across use cases, while population decline and aging is increasing the supply of idle/underutilized space that cannot be absorbed through traditional long-term leasing
  • Rebase estimates its 2022 market share was approximately 2%, and aims to grow share alongside overall market expansion to achieve its corporate mission and vision

• M&A and Investment Policy

  • The top priority for external investment is companies that can deliver clear synergy with the core Instabase platform
  • The firm also targets companies that enable expansion into new business areas, to increase opportunities for entering new market segments

Rebase operates a single core product segment, the Instabase rental space platform, for the fiscal 2026 March term first quarter. Total net sales reached 494 million yen (0.494 billion yen), a 20% increase year-over-year. Gross merchandise value (total space utilization value), the firm's core operational metric, exceeded 1.6 billion yen, a 23% increase year-over-year, with a 22% progress rate against the full-year starting KPI target. Operating income hit 61 million yen (0.061 billion yen), a 34% decrease year-over-year, with an operating margin of 12%. Selling, general and administrative expenses came to 415 million yen, a 37% increase year-over-year. Key operational metrics for the segment: total space utilization hit 406,000 bookings (a new all-time high), up 29% year-over-year; listed spaces grew 1,200 to 42,000 units, up 16% year-over-year. Average transaction price declined year-over-year due to continued faster growth in utilization of lower-priced spaces. The segment contributes 100% of the firm's revenue.

Management did not revise the full-year fiscal 2026 guidance in this first quarter earnings release. The core full-year KPI for total utilization value hit a 22% progress rate in the first quarter, aligned with expectations given the market's structural seasonality bias toward the second half of the fiscal year. Full-year results will be updated at the scheduled full-year earnings announcement.

No explicit material operational or market risks were discussed in this first quarter earnings call transcript. The only context related to sector-level headwinds is the long-term industry trend of growing idle space supply, which Rebase frames as a growth opportunity for its space sharing platform rather than a downside risk.

No in-person live question and answer session was held for this first quarter earnings call. Management has asked for questions to be submitted via the IR contact form on the company website, and maintains a public FAQ of common earnings questions at the dedicated QA Station site. No transcribed Q&A exchanges were included in the provided transcript.