Lifull Q1 FY2025: Slight Revenue Growth as Overseas Segment Transformation Completed

The diversified marketplace and former aggregator operator Lifull has released its financial result for the first quarter of the Japanese financial year, ending in October 2024.

Highlights from the business include:

• Q1 2025 revenues hit JPY 8.36 billion ($54.4 million), up 2.2% on Q1 2024
• Last year's Q1 net loss of JPY 400 million ($2.6 million) recovered significantly to a net profit of JPY 383 million ($2.4 million)
• Lifull HOME's Services segment drives revenue growth with 7.7% YoY increase to JPY 5.9 billion ($38.6 million)
• LIFULL's Overseas Segment narrowed losses from JPY 608 million to JPY 276 million - an improvement of JPY 332 million YoY.
• Q1 2025 operating profit of JPY652 million ($4.2 million)

Minor revenue growth year-on-year was driven by Homes.co.jp’s increase in site traffic and inquiries, while the smaller segments—Overseas and Other—both saw reduced revenue compared to the same period last year.

Revenue growth rates for the HOME's segment have shown consistent improvement over the last five quarters, from a modest 0.5% YoY revenue growth in Q1 2024 to 7.7% this quarter.

Meanwhile, Lifull has released a separate statement surrounding revisions to its consolidated financial results forecast due to the transfer of its overseas subsidiary, namely the Overseas segment falling into the hands of a new management team led by FazWaz founder Mike Kenner this January.

Lifull reduced its holding in the Overseas segment to 55% (from 65%) but most importantly relinquished all its voting rights, handing over total decision-making control to Kenner and his team.

Lifull said, "The Overseas business has become a pure investment and excluded from consolidation. Moving forward, we will focus our management resources on expanding our domestic businesses in Japan."

Meanwhile, yesterday's filing states:

The Board of Directors has resolved... to revise the consolidated financial results forecast for the fiscal year ending September 30, 2025, as detailed below.

In this revision, we have excluded revenue and expenses originally included in the forecast for the Overseas segment from the second quarter for the rest of the year to reflect recent changes in our overseas subsidiaries. As we are still reviewing the effects of the accounting treatment for the loss of control of LIFULL CONNECT after deconsolidation as well as accounting treatment for the liquidation of Mitula Group, we have not yet included these factors into our revised forecast. We will continue to confirm the effects of these items with our auditing firm and will promptly revise our financial results forecast as soon as details have been confirmed.

The result of this consolidation is shown below, as published in yesterday's filing:

Finally, Lifull's revised full-year forecast for the 2025 financial year, taking into account the new-look Overseas segment, suggests full-year revenues will fall 19% to JPY 30.6 billion ($199.5 million)—circa $47.8 million less than previously forecasted.

Jordan Conrad, investor relations at Lifull, added:

"Current revisions to the full-year forecast are not the final product of the deconsolidation of LIFULL CONNECT, but rather the replacement of the original full-year forecast with the three-month results. We will follow up with additional revisions after we have finalized the overall accounting treatment. For this reason, although we have made downward revisions to consolidated OP for the year, we have not rescinded our JPY 5 billion OP target."