Reported Earnings • May 20
First quarter 2026 earnings released: JP¥4.87 loss per share (vs JP¥4.84 loss in 1Q 2025) First quarter 2026 results: JP¥4.87 loss per share (further deteriorated from JP¥4.84 loss in 1Q 2025). Revenue: JP¥4.74b (up 14% from 1Q 2025). Net loss: JP¥122.0m (flat on 1Q 2025). Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Consumer Services industry in Japan. New Risk • Apr 14
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 53% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (53% increase in shares outstanding). Minor Risks High level of debt (89% net debt to equity). Market cap is less than US$100m (JP¥11.6b market cap, or US$73.0m). Announcement • Feb 16
Novarese, Inc., Annual General Meeting, Mar 19, 2026 Novarese, Inc., Annual General Meeting, Mar 19, 2026. Reported Earnings • Feb 16
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥50.14 (up from JP¥26.52 in FY 2024). Revenue: JP¥22.0b (up 14% from FY 2024). Net income: JP¥1.26b (up 89% from FY 2024). Profit margin: 5.7% (up from 3.4% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.0%. Earnings per share (EPS) missed analyst estimates by 2.4%. Revenue is forecast to grow 33% p.a. on average during the next 2 years, compared to a 7.5% growth forecast for the Consumer Services industry in Japan. Announcement • Dec 27
Novarese, Inc. to Report Fiscal Year 2025 Results on Feb 13, 2026 Novarese, Inc. announced that they will report fiscal year 2025 results on Feb 13, 2026 Reported Earnings • Nov 18
Third quarter 2025 earnings released: JP¥5.46 loss per share (vs JP¥9.40 loss in 3Q 2024) Third quarter 2025 results: JP¥5.46 loss per share (improved from JP¥9.40 loss in 3Q 2024). Revenue: JP¥4.48b (up 9.8% from 3Q 2024). Net loss: JP¥137.0m (loss narrowed 42% from 3Q 2024). Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Consumer Services industry in Japan. Announcement • Sep 27
Novarese, Inc. to Report Q3, 2025 Results on Nov 14, 2025 Novarese, Inc. announced that they will report Q3, 2025 results on Nov 14, 2025 Reported Earnings • Aug 16
Second quarter 2025 earnings released: EPS: JP¥13.45 (vs JP¥9.56 in 2Q 2024) Second quarter 2025 results: EPS: JP¥13.45 (up from JP¥9.56 in 2Q 2024). Revenue: JP¥5.54b (up 16% from 2Q 2024). Net income: JP¥337.0m (up 41% from 2Q 2024). Profit margin: 6.1% (up from 5.0% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 1.7% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the Consumer Services industry in Japan. Announcement • Jun 27
Novarese, Inc. to Report Q2, 2025 Results on Aug 14, 2025 Novarese, Inc. announced that they will report Q2, 2025 results on Aug 14, 2025 Reported Earnings • May 20
First quarter 2025 earnings released: JP¥4.84 loss per share (vs JP¥10.36 loss in 1Q 2024) First quarter 2025 results: JP¥4.84 loss per share (improved from JP¥10.36 loss in 1Q 2024). Revenue: JP¥4.16b (up 13% from 1Q 2024). Net loss: JP¥121.0m (loss narrowed 53% from 1Q 2024). Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the Consumer Services industry in Japan. Announcement • Mar 29
Novarese, Inc. to Report Q1, 2025 Results on May 15, 2025 Novarese, Inc. announced that they will report Q1, 2025 results on May 15, 2025 Announcement • Feb 17
Novarese, Inc., Annual General Meeting, Mar 27, 2025 Novarese, Inc., Annual General Meeting, Mar 27, 2025. Reported Earnings • Feb 16
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥26.52 (down from JP¥37.68 in FY 2023). Revenue: JP¥19.3b (up 5.7% from FY 2023). Net income: JP¥663.0m (down 30% from FY 2023). Profit margin: 3.4% (down from 5.2% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 32%. Revenue is forecast to grow 4.0% p.a. on average during the next 2 years, compared to a 9.0% growth forecast for the Consumer Services industry in Japan. Announcement • Jan 03
Novarese, Inc. to Report Fiscal Year 2024 Results on Feb 14, 2025 Novarese, Inc. announced that they will report fiscal year 2024 results on Feb 14, 2025 Announcement • Aug 27
Novarese, Inc. to Report Q3, 2024 Results on Nov 14, 2024 Novarese, Inc. announced that they will report Q3, 2024 results on Nov 14, 2024 Reported Earnings • Aug 19
Second quarter 2024 earnings released Second quarter 2024 results: EPS: JP¥9.56. Net income: JP¥239.0m (up JP¥239.0m from 2Q 2023). Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 7.6% growth forecast for the Consumer Services industry in Japan. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥261, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 14x in the Consumer Services industry in Japan. Total loss to shareholders of 44% over the past year. Announcement • Jun 06
Novarese, Inc. to Report Q2, 2024 Results on Aug 14, 2024 Novarese, Inc. announced that they will report Q2, 2024 results on Aug 14, 2024 Reported Earnings • May 21
First quarter 2024 earnings released First quarter 2024 results: JP¥10.36 loss per share. Net loss: JP¥259.0m (flat on 1Q 2023). Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 8.5% growth forecast for the Consumer Services industry in Japan. Announcement • Apr 06
Novarese, Inc. to Report Q1, 2024 Results on May 15, 2024 Novarese, Inc. announced that they will report Q1, 2024 results on May 15, 2024 Buy Or Sell Opportunity • Apr 03
Now 20% undervalued Over the last 90 days, the stock has risen 2.4% to JP¥301. The fair value is estimated to be JP¥376, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.1% over the last year. Earnings per share has declined by 43%. For the next 3 years, revenue is forecast to grow by 4.4% per annum. Earnings are also forecast to grow by 5.3% per annum over the same time period. Buy Or Sell Opportunity • Mar 19
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.1% to JP¥293. The fair value is estimated to be JP¥369, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.1% over the last year. Earnings per share has declined by 100%. For the next 3 years, revenue is forecast to grow by 4.4% per annum. Earnings are also forecast to grow by 5.3% per annum over the same time period. Buy Or Sell Opportunity • Feb 27
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 17% to JP¥298. The fair value is estimated to be JP¥373, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.1% over the last year. Earnings per share has declined by 100%. Reported Earnings • Feb 17
Full year 2023 earnings released: EPS: JP¥37.69 (vs JP¥13,248 in FY 2022) Full year 2023 results: EPS: JP¥37.69 (down from JP¥13,248 in FY 2022). Revenue: JP¥18.3b (up 6.1% from FY 2022). Net income: JP¥942.3m (down 43% from FY 2022). Profit margin: 5.2% (down from 9.6% in FY 2022). The decrease in margin was driven by higher expenses. New Risk • Feb 16
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (156% net debt to equity). Latest financial reports are more than 6 months old (reported December 2022 fiscal period end). Share price has been volatile over the past 3 months (5.8% average weekly change). Market cap is less than US$100m (JP¥7.83b market cap, or US$52.1m). Announcement • Feb 14
Novarese, Inc., Annual General Meeting, Mar 28, 2024 Novarese, Inc., Annual General Meeting, Mar 28, 2024. Announcement • Dec 30
Novarese, Inc. to Report Fiscal Year 2023 Results on Feb 14, 2024 Novarese, Inc. announced that they will report fiscal year 2023 results on Feb 14, 2024 New Risk • Dec 12
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2022. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks High level of debt (156% net debt to equity). Latest financial reports are more than 6 months old (reported December 2022 fiscal period end). Share price has been volatile over the past 3 months (6.8% average weekly change). Market cap is less than US$100m (JP¥8.48b market cap, or US$58.0m). Valuation Update With 7 Day Price Move • Nov 20
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥315, the stock trades at a trailing P/E ratio of 4.8x. Average trailing P/E is 21x in the Consumer Services industry in Japan. Announcement • Nov 18
Novarese, Inc. Revises Consolidated Earnings Guidance for the Fiscal Year Ending December 31, 2023 Novarese, Inc. revised consolidated earnings guidance for the fiscal year ending December 31, 2023. For the year, the company now expects revenue of ¥18,035 million an operating profit of ¥1,509 million, Profit attributable to owners of the parent of ¥855 million or ¥34.24 basic per share against previous guidance of revenue of ¥20,114 million an operating profit of ¥3,082 million, Profit attributable to owners of the parent of ¥1,860 million or ¥74.43 basic per share. Valuation Update With 7 Day Price Move • Oct 20
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥391, the stock trades at a trailing P/E ratio of 5.9x. Average trailing P/E is 18x in the Consumer Services industry in Japan. Announcement • Sep 29
Novarese, Inc. to Report Q3, 2023 Results on Nov 14, 2023 Novarese, Inc. announced that they will report Q3, 2023 results on Nov 14, 2023 Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥380, the stock trades at a trailing P/E ratio of 5.7x. Average trailing P/E is 18x in the Consumer Services industry in Japan. Announcement • Jul 01
Novarese, Inc. has completed an IPO in the amount of ¥6.5289 billion. Novarese, Inc. has completed an IPO in the amount of ¥6.5289 billion.
Security Name: Common Stock
Security Type: Common Stock
Securities Offered: 8,308,000
Price\Range: ¥600
Discount Per Security: ¥42
Security Name: Common Stock
Security Type: Common Stock
Securities Offered: 2,573,500
Price\Range: ¥600
Discount Per Security: ¥42
Transaction Features: Sponsor Backed Offering Board Change • Jun 30
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 11 experienced directors. 1 highly experienced director. No independent directors (9 non-independent directors). Non Executive Director Junji Nakahara was the last director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. 