FIT EASY Inc (212A.T) QQ1 2025 Results: Profitability Expansion and Robust Balance Sheet in Japan's Consumer Cyclical Personal Products Services
Executive Summary
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.
Key Performance Indicators
Revenue
2.07B
QoQ: N/A | YoY:N/A
Gross Profit
756.16M
36.57% margin
QoQ: N/A | YoY:N/A
Operating Income
546.91M
QoQ: N/A | YoY:N/A
Net Income
364.24M
QoQ: N/A | YoY:N/A
EPS
22.99
QoQ: N/A | YoY:N/A
Revenue Trend
Margin Analysis
Key Insights
Revenue: 2,067,813; QoQ growth vs. Q4 2024: +6.6% (1939,506 in Q4 2024 to 2,067,813 in Q1 2025)
Key quarterly metrics and trend analysis (JPY in thousands unless noted):
- Revenue: 2,067,813; QoQ growth vs. Q4 2024: +6.6% (1939,506 in Q4 2024 to 2,067,813 in Q1 2025)
- Gross profit: 756,164; gross margin: 36.57%
- EBITDA: 589,614; EBITDA margin: 28.51%
- Operating income: 546,907; operating margin: 26.45%
- Income before tax: 547,336; pretax margin: 26.47%
- Net income: 364,239; net margin: 17.61%
- EPS (diluted): 22.99 JPY; Weighted average shares: 15.84 million
- Interest expense: 1,698; Depreciation & amortization: 40,578
- Balance sheet liquidity: Cash and cash equivalents 2,351,637; Total current assets 3,499,327; Total assets 5,631,201; Total liabilities 2,607,808; Total stockholders’ equity 3,023,392
- Leverage and liquidity signals: Total debt 586,830; Net debt: -1,764,807 (net cash); Current ratio 2.36; Quick ratio 2.32; Cash ratio 1.587
- Efficiency/turnover: Receivables turnover 2.81x; Inventory turnover 19.06x; Days sales outstanding ~32.08 days; Days inventory outstanding ~4.72 days; Payables turnover 2.91x; CCC ~5.83 days
- Valuation metrics (as of QQ1 2025): P/B 7.76x; P/E 16.11x; P/S 11.35x; Enterprise value multiple ~36.82x; Price per share 148.46 JPY (implied from provided per-share and price/book data)
- Dividend: Payout ratio 0 (no dividends declared in the data); Dividend yield: 0%
Income Statement
Metric
Value
YoY Change
QoQ Change
Key Financial Ratios
currentRatio
2.36
grossProfitMargin
36.6%
operatingProfitMargin
26.4%
netProfitMargin
17.6%
returnOnAssets
6.47%
returnOnEquity
12%
debtEquityRatio
0.19
priceToBookRatio
7.76
priceEarningsRatio
16.11
Net Income vs. Revenue
Expense Breakdown
Management Commentary
transcriptHighlights: No earnings-call transcript data were provided for QQ1 2025. As a result, no management quotes or thematic highlights can be extracted from the transcript. The analysis below relies on published financial results and the reported quarterly metrics.
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Forward Guidance
Forward guidance was not disclosed in the provided data set. Based on the QQ1 2025 results and the company’s liquidity position, the following qualitative outlook can be inferred:
- Revenue trajectory: QoQ growth of ~6.6% suggests steady demand for FIT EASY’s amusement fitness club concept and related services. The company may leverage franchise development and new experience formats to sustain top-line momentum.
- Margin profile: Gross margin approx. 36.6% and operating margin ~26.5% indicate a robust profitability backbone that can absorb modest cost headwinds or incremental capex tied to expansion.
- Capital allocation: With a net cash position (~1.76B JPY) and no near-term debt maturities highlighted, the balance-sheet stance is conducive to selective investments in new clubs, renovations, or partnerships without compromising liquidity.
- Key risk factors to monitor: consumer discretionary trends in Japan, franchise scalability, capex intensity of expansion, wage and energy costs, and competitive dynamics within the personal-products/services segment.
Overall, while explicit targets are not stated, the QQ1 2025 data suggest a constructive path to growth supported by liquidity, margin discipline, and a franchise-driven expansion thesis. Investors should monitor quarterly revenue progression, any changes in SG&A efficiency, and capital deployment timing as potential catalysts or detractors.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
212A.T Focus
36.57%
26.40%
12.00%
16.11%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Quantitatively, QQ1 2025 shows a revenue uptick of ~6.6% QoQ with margin stability, EBITDA ~589.6M JPY and net income of 364.2M JPY, supporting a positive earnings trajectory. The balance sheet remains very healthy, with cash and cash equivalents of ~2.35B JPY and a net cash position, enabling strategic investments without elevated leverage. Valuation multiples (P/E ~16.1x, P/B ~7.8x, P/S ~11.4x) reflect earnings quality and a cushion of liquidity but are not directly comparable to peers due to data limitations. Investor takeaway: FIT EASY appears well-positioned to pursue expansion and value creation through franchise growth and enhanced member experiences, provided quarterly revenue growth is sustained and cost discipline remains intact. Key performance monitors include (1) quarterly revenue progression and same-store sales dynamics, (2) franchise onboarding/cost structure, (3) capital deployment timing, and (4) any explicit forward guidance from management in forthcoming quarters.
Key Investment Factors
Growth Potential
Franchise-based expansion and continued development of amusement fitness formats offer potential for revenue acceleration. The current margin structure supports incremental investments in new clubs, member experiences, and cross-sell opportunities across services.
Profitability Risk
Concentration in the Japanese market and consumer discretionary exposure; competition from other fitness/experience concepts; potential regulatory or macroeconomic headwinds affecting discretionary spend; limited disclosure on forward guidance and capex plans.
Financial Position
Strong liquidity with net cash of approximately -1.765 billion JPY, a solid current ratio (~2.36x), and limited leverage. Balance-sheet strength provides flexibility for strategic investments, potential partnerships, or selective acquisitions while preserving credit durability.
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