Lifull Q1 FY2026: Profits Jump 42% as AI Push Gains Traction

Lifull has kicked off FY2026 with a sharp uptick in profitability, as momentum in its domestic HOME'S Services business and a heavy push into AI drove double-digit bottom-line growth in the first quarter.

• Revenue of ¥6.99 billion, up 8.3% year-on-year
• Operating profit of ¥1.17 billion, up 42.1% year-on-year
• Operating margin expanded to 16.8%, from 12.8% a year earlier
• Net profit of ¥753 million, up 96.3% year-on-year

The Tokyo-listed portal operator said growth was driven by continued strength in HOME'S Services, which recorded its ninth consecutive quarter of revenue expansion. Segment revenue rose 6.9% to ¥6.36 billion, while segment profit increased 47.5% to ¥1.33 billion, reflecting improved site metrics and higher profitability.

Client network and ARPA both increased over the three-month period, supported by sales initiatives and solid performance in the for-sale property segment. ARPA reached ¥62,727 on a three-month average basis, up 3.8% year-on-year, while the client network grew 2.9% to 33,804 agents.

Kenbiya, Lifull’s investment property platform, delivered 18.8% revenue growth year-on-year, benefiting from database integration with HOME'S and expanded sales efforts.

AI was once again front and centre. During the quarter, Lifull launched “LIFULL AI” and its interactive home search agent, “AI Homes-kun”, aiming to shift the user experience from search to dialogue. Internally, 96.2% of employees are now using generative AI, generating approximately 50,000 hours of productivity over six months.

Cash and equity declined modestly due to higher shareholder returns in the previous fiscal year, including dividends, although operating cash flow improved to ¥775 million.

For FY2026, Lifull reiterated its full-year forecast of ¥29.7 billion in revenue and ¥3.0 billion in operating profit. Q1 represents 23.5% progress towards the revenue target and 39.2% of the operating profit goal, a solid start ahead of Japan’s peak moving season in Q2.

After divesting its overseas operations earlier in 2025, Lifull is now a streamlined, Japan-focused portal business doubling down on AI and operational leverage.