EPS of $28.21 increased by 154.7% from previous year
Gross margin of 37.1%
Net income of 461.47M
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FIT EASY Inc (212A.T) QQ3 2025 Earnings Analysis – Robust YoY Revenue Growth and Margin Expansion Amid Seasonal QoQ Decline in Japan's Amusement-Fitness Network
Executive Summary
FIT EASY Inc delivered a solid QQ3 2025 performance with a strong year-over-year top-line expansion and meaningful profitability metrics, underscoring the company's ability to scale its amusement‑fitness network. Revenue reached 2,642,034,000 JPY, up 62.75% year over year, while gross margin (37.10%) and EBITDA margin (27.89%) point to favorable unit economics as the platform scales. Net income of 461,467,000 JPY and an EPS of 29.04 JPY reflect disciplined cost management alongside leverage from higher activity levels and a measured depreciation/amortization profile.
On a sequential basis, revenue declined 39.17% quarter‑over‑quarter, which aligns with typical seasonality in consumer discretionary services and a challenging base effect from the prior quarter. Despite the quarterly revenue pullback, operating income rose to 689,467,000 JPY (operating margin ~26.1%), driven by strong gross profitability and controlled operating expenses (SG&A and selling costs totaling ~290.8m JPY). The quarter confirms FIT EASY's ability to generate meaningful profits at scale, but the absence of public balance-sheet and cash-flow data limits a full assessment of liquidity and leverage.
Looking ahead, the investment thesis hinges on sustaining the current growth cadence through store and franchise expansion, monetization of diverse FIT EASY product lines (e.g., fit aero, fit golf, sauna, etc.), and improvement in fixed-cost absorption as the network scales. Management commentary and explicit forward guidance are not provided in the data set, so investors should monitor capex intensity, same-store performance (where disclosed), and any updated capital allocation framework as the company progresses through the remainder of 2025.
Key Performance Indicators
Revenue
2.64B
QoQ: -39.17% | YoY:62.75%
Gross Profit
980.30M
37.10% margin
QoQ: -37.02% | YoY:96.48%
Operating Income
689.47M
QoQ: -35.88% | YoY:135.49%
Net Income
461.47M
QoQ: -35.69% | YoY:155.49%
EPS
29.04
QoQ: -35.72% | YoY:154.74%
Revenue Trend
Margin Analysis
Key Insights
Gross Margin: 37.10%
Operating Margin: 26.10%
Net Margin: 17.47%
EBITDA Margin (EBITDA / Revenue): 27.89%
Q1 2025: Revenue 2,067,813,000 JPY; Net Income 364,239,000 JPY; EPS 22.99
Key quarterly cadence (historic quarterly data in fourQuarters):
- Q1 2025: Revenue 2,067,813,000 JPY; Net Income 364,239,000 JPY; EPS 22.99
- Q2 2025: Revenue 4,343,508,000 JPY; Net Income 717,590,000 JPY; EPS 43.86
- Q3 2025: Revenue 2,642,034,000 JPY; Net Income 461,467,000 JPY; EPS 29.04
- Q4 2024 (previous year): Revenue 1,939,506,000 JPY; Net Income 313,217,000 JPY; EPS 19.77
Note: YoY and QoQ metrics shown above are provided for QQ3 2025 and illustrate a high-growth trajectory on a year-over-year basis with seasonally normalizing quarterly sequence.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.64B
62.75%
-39.17%
Gross Profit
980.30M
96.48%
-37.02%
Operating Income
689.47M
135.49%
-35.88%
Net Income
461.47M
155.49%
-35.69%
EPS
29.04
154.74%
-35.72%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript availability: Not provided in the data set. Consequently, no management quotes or thematic highlights from an earnings call can be cited. The analysis above is executional on the disclosed P&L metrics and quarter-to-quarter/time-series data.
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Forward Guidance
Explicit management guidance for QQ4 2025 or beyond is not included in the provided materials. In the absence of formal guidance, the outlook should be framed around: (1) continued expansion cadence of FIT EASY facilities and potential franchising development, (2) monetization of a diversified product suite (fitness experiences, equipment, and ancillary services), and (3) operating leverage as fixed costs dilute with higher throughput. Investors should monitor any future disclosures on capex intensity, same-store performance, utilization metrics, pricing strategy, and capital allocation (dividend policy or buybacks) to gauge the sustainability of the current profitability trajectory.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
212A.T Focus
37.10%
N/A
N/A
N/A
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
QQ3 2025 demonstrates a compelling growth and profitability mix for FIT EASY, underpinned by strong YoY revenue growth and healthy margins. The lack of balance sheet, cash-flow data, and explicit forward guidance introduces execution and liquidity uncertainties that investors should monitor. The investment thesis rests on sustained expansion cadence, continued monetization of a diversified fitness ecosystem, and demonstrated ability to translate top-line growth into durable margin expansion. Absent additional disclosures, a cautious stance is warranted until balance-sheet strength and capital-allocation strategy are clarified; if the company communicates a clear growth plan with disciplined capex and profitability targets, the stock could re-rate on earnings momentum.
Key Investment Factors
Growth Potential
Robust YoY top-line growth (Revenue up 62.75% in QQ3 2025) supported by network expansion and diversified offerings (Fit Aero, Fit Golf, sauna, etc.). Gross and EBITDA margins imply favorable unit economics at scale, with potential for incremental margin expansion as fixed costs amortize with higher throughput.
Profitability Risk
Seasonality and quarterly volatility evidenced by a -39.17% QoQ revenue decline; lack of available balance sheet and cash-flow data makes liquidity and leverage assessment incomplete; no transcript or forward guidance available to corroborate strategic plans; competitive intensity in consumer discretionary fitness services could pressure pricing or member acquisition costs.
Financial Position
Balance sheet and cash-flow figures are not provided. Therefore, liquidity, leverage ratios, working capital dynamics, and cash conversion cycle cannot be evaluated from the supplied data. The view relies on income statement quality and margin stability; capex intensity and debt levels remain unknown.
SWOT Analysis
Strengths
Healthy gross margin at 37.1% and strong EBITDA margin at 27.9%, indicating favorable unit economics at scale.
Significant YoY revenue growth (62.75%) in QQ3 2025, signaling robust demand and effective expansion.
Profitable bottom-line trajectory with net margin of 17.5% and solid net income of 461.5m JPY in QQ3 2025.
Weaknesses
Material QoQ revenue decline (-39.17%), suggesting seasonality or base effects requiring management to address performance stability.
Limited visibility into balance sheet health and cash flow due to absent data, hindering liquidity and leverage assessment.
No public transcript or forward guidance provided to anchor the strategic narrative.
Opportunities
Expansion of store and franchise footprint to further monetize the amusement‑fitness model.
Cross-selling and product diversification (fit aero, fit golf, sauna, lounge, etc.) to lift average spend per member.
Potential operational leverage as fixed costs dilute with higher throughput from a growing network.
Threats
Seasonality and discretionary consumer spending sensitivity in Japan's consumer cyclicals sector.
Competition from other fitness/entertainment concepts could pressure member acquisition costs and pricing.
Regulatory, labor, or health & safety considerations could impact operating efficiency and capex plans.
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