FIT EASY delivered a solid QQ1 2025 performance with a revenue of 2,067,813,000 JPY and a gross margin of 36.57%, supported by disciplined operating expenses and strong profitability. EBITDA reached 589,614,000 JPY and net income was 364,239,000 JPY, translating to 22.99 JPY per share. QoQ revenue growth of approximately 6.6% (vs. Q4 2024) signals continued demand for FIT EASY’s amusement fitness club concept and potential upside from franchise expansion. The company maintains a robust liquidity position with cash and cash equivalents of 2,351,637,000 JPY and a net cash position of -1,764,807,000 JPY, providing financial flexibility to fund growth initiatives while preserving balance-sheet strength.
The QQ1 2025 balance sheet shows a healthy asset base (Total assets 5,631,201,000 JPY) and conservative leverage (Total debt 586,830,000 JPY; Net debt negative, indicating substantial net cash). Operating efficiency is evident in strong working-capital metrics: days sales outstanding ~32.1, days inventory outstanding ~4.7, and a cash conversion cycle of ~5.8 days. Profitability metrics remain solid, with operating margin around 26.45% and net margin near 17.61%, supported by a high gross margin and relatively contained SG&A expenses as a percent of revenue. While explicit forward guidance is not provided in the data, the sequential improvement and cash-rich balance sheet imply a constructive setup for potential expansion, including franchise development and experience-driven monetization. Valuation multiples (P/E ~16.1x, P/B ~7.8x, P/S ~11.4x) suggest the market prices in the firm’s earnings power and balance-sheet strength, though direct peer comparisons are not available in the provided data.