GENDA’s latest quarter says two things at once. The entertainment group is still getting much bigger through acquisitions and reorganisation, with sales up 45.0% year on year to ¥49,702 million in the three months to April 30. But the accounting and financing bill for that strategy is arriving faster than statutory profit, with Japanese GAAP operating income down 79.2% to ¥288 million and net income attributable to owners of parent swinging to a ¥752 million loss. Management kept its full-year targets unchanged and is asking investors to focus on adjusted EBITDA, which rose 8.0% to ¥4,612 million.
| Metric | Three months to Apr. 30, 2026 | Three months to Apr. 30, 2025 |
|---|---|---|
| Net sales | ¥49,702 million | ¥34,269 million |
| GAAP operating income | ¥288 million | ¥1,390 million |
| Net income attributable to owners of parent | -¥752 million | ¥223 million |
| Adjusted EBITDA | ¥4,612 million | ¥4,268 million |
| Adjusted quarterly net income | ¥736 million | ¥1,377 million |
That emphasis is not just presentation. GENDA defines adjusted EBITDA as operating income plus depreciation, goodwill amortisation and M&A-related costs. Its adjusted quarterly net income likewise adds back acquisition-related amortisation and certain deal costs. Those add-backs are getting larger. Depreciation rose to ¥3,039 million from ¥1,750 million and goodwill amortisation to ¥1,204 million from ¥759 million. Below the operating line, interest expense climbed to ¥563 million from ¥275 million, and financing fees jumped to ¥222 million from ¥1 million.
The balance sheet also shows a financing shift rather than a lighter burden. Short-term borrowings fell by ¥30,629 million from the end of January, while long-term borrowings rose by ¥25,988 million and bonds outstanding increased by ¥7,000 million. Even on GENDA’s preferred basis, meanwhile, the quarter was hardly sparkling: adjusted quarterly net income fell 46.5% to ¥736 million from ¥1,377 million, badly lagging the sales increase. In other words, the roll-up is still producing scale, but not yet converting that scale into stronger near-term earnings.
Management’s case for patience rests on timing as much as on accounting. The company said sales were lifted by contributions from businesses acquired in the previous year, while it also pushed through more internal consolidation. In karaoke, two large equipment businesses were merged into ENNE in February, and store operations were further integrated in April. In North America, the group reorganised multiple subsidiaries under GENDA Americas in March. GENDA also said results are becoming more second-half weighted because its recently acquired UK amusement operator has pronounced seasonality.
That helps explain why the company left its targets for the year to January 2027 untouched at ¥215,000 million in sales, ¥30,000 million in adjusted EBITDA and ¥10,600 million in adjusted net income, with no change from the forecast issued on March 12. One thing investors still cannot test from this filing is cash conversion: GENDA said it did not prepare a quarterly cash-flow statement for the period. For a group asking the market to judge it on adjusted earnings, that omission matters. This quarter shows that acquisitions can still bulk up revenue. The harder question, still unanswered, is when that growth will need fewer add-backs to look robust.