Curves Holdings Co., Ltd. (7085) AI Stock Analysis

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Curves Holdings Co., Ltd.

(TSE/TYO:7085)

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Rating:79Outperform

Price Target:JPY 1,269.00▲(18.05% Upside)

Action:reiterated

Date:10/14/26

The score is driven primarily by strong financial performance—improving margins, solid ROE with sharply lower leverage, and robust free cash flow. Technicals are supportive with the stock trading above major moving averages, though momentum is approaching overbought levels. Valuation is reasonable but not especially compelling at a ~17.9 P/E with a ~2.0% dividend yield.

Positive Factors

Recurring membership modelRecurring monthly membership fees provide a predictable revenue foundation, while the combination of company-operated and franchise clubs broadens the network’s reach. This model can support durable cash generation as the member base is retained and the Curves system continues to operate across multiple locations.

Negative Factors

Uneven revenue growthAlthough the long-term revenue trend is positive, uneven annual growth makes future expansion less predictable and may complicate planning for club openings, staffing, and franchise support. A slower growth phase could also reduce operating leverage and delay the expected compounding of earnings.

Curves Holdings Co., Ltd. (7085) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 97.43B
Dividend Yield: 1.73%
Average Volume (3M): 542.20K
Price to Earnings (P/E): 19.9
Beta (1Y): 0.40
Revenue Growth: 15.50%
EPS Growth: 14.56%
Country: Japan
Employees: 601
Sector: General
Sector Strength: 55
Industry: Leisure

Curves Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

CURVES HOLDINGS Co., Ltd. is primarily engaged in the management and operation of women-only fitness centers throughout Japan, trading under the well-known Curves brand. Beyond its physical facilities, the company extends its services to a digital pl...

How the Company Makes Money

Curves Holdings generates revenue primarily through (1) membership-related income from Curves fitness clubs (e.g., recurring monthly membership fees paid by club members) and (2) franchise-related income associated with the operation and expansion of...

Curves Holdings Co., Ltd. Financial Statement Overview

Summary

Strong multi-year revenue growth and materially improved profitability (operating margin rising to ~18% and net margin to ~11% by 2026). Balance sheet risk has fallen sharply with debt-to-equity improving to ~0.15x while maintaining healthy ROE (~21.7% in 2026). Cash flow is robust with higher operating cash flow and strong free-cash-flow conversion, though the gap between EBITDA and operating cash flow (OCF ~56% of EBITDA in 2026) warrants monitoring.

Income Statement

86Very Positive

Balance Sheet

88Very Positive

Cash Flow

84Very Positive

Financial statement breakdown
Breakdown	TTM	Aug 2026	Aug 2025	Aug 2024	Aug 2023	Aug 2022
Income Statement
Total Revenue	39.34B	43.39B	37.57B	35.47B	30.02B	27.51B
Gross Profit	16.69B	18.33B	14.64B	13.74B	11.51B	10.88B
EBITDA	9.09B	10.13B	8.59B	7.69B	6.16B	4.74B
Net Income	4.42B	4.91B	4.30B	3.57B	2.55B	2.25B
Balance Sheet
Total Assets	40.65B	41.12B	39.20B	41.37B	39.11B	38.35B
Cash, Cash Equivalents and Short-Term Investments	9.50B	8.74B	8.70B	8.30B	8.13B	8.21B
Total Debt	4.35B	3.33B	5.37B	8.67B	11.96B	15.25B
Total Liabilities	17.73B	18.49B	19.04B	21.97B	24.04B	26.00B
Stockholders Equity	22.92B	22.63B	20.16B	19.41B	15.07B	12.36B
Cash Flow
Free Cash Flow	5.52B	6.89B	6.06B	5.28B	4.76B	3.05B
Operating Cash Flow	6.21B	7.21B	6.21B	5.43B	4.92B	3.27B
Investing Cash Flow	-727.00M	-826.00M	-727.00M	-967.01M	-891.90M	-943.99M
Financing Cash Flow	-4.89B	-6.54B	-4.89B	-4.33B	-4.09B	-4.22B

Curves Holdings Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1075.00

Price Trends

50DMA963.02Positive

100DMA939.72Positive

200DMA861.78Positive

Market Momentum

MACD33.25Positive

RSI60.44Neutral

STOCH57.14Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7085, the sentiment is Positive. The current price of 1075.00 is above the 20-day moving average (MA) of 1046.10, above the 50-day MA of 963.02, and above the 200-day MA of 861.78, indicating a bullish trend. The MACD of 33.25 indicates Positive momentum. The RSI at 60.44 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7085.

Curves Holdings Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7085 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7085	79Outperform	JPY 98.16B	19.89	―	1.73%	15.50%	14.56%
JP:2340	73Outperform	JPY 16.15B	18.87	―	1.18%	3.63%	10.51%
JP:6074	70Outperform	JPY 1.88B	7.17	―	4.27%	0.55%	46.07%
JP:4801	67Neutral	JPY 25.93B	30.11	―	1.72%	2.42%	81.45%
JP:4680	65Neutral	JPY 382.27B	23.68	20.75%	1.23%	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7085 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7085	Curves Holdings Co., Ltd.	1075.00	344.19	47.10%
JP:4680	ROUND ONE Corporation	1466.00	485.62	49.53%
JP:2340	GOKURAKUYU HOLDINGS CO. LTD.	508.00	29.00	6.05%
JP:4801	Central Sports Co., Ltd.	2325.00	-61.52	-2.58%
JP:6074	JSS CORP	480.00	-33.89	-6.60%

Curves Holdings Co., Ltd. Corporate Events

Curves Holdings Outlines FY 2026 Results and Long-Term Growth Strategy

Oct 13, 2026

Curves Holdings has released consolidated results for the fiscal year ended August 31, 2026, outlining financial performance and key operational initiatives. The materials also provide forecasts for FY 2027 and detail a medium-term vision through 203...

Curves Holdings Lifts Earnings, Balance Sheet Strength and Shareholder Returns

Oct 13, 2026

Curves Holdings reported strong results for the fiscal year ended August 31, 2026, with net sales rising 15.5% to ¥43.39 billion and operating profit up 22.3% to ¥7.76 billion, lifting profit attributable to owners of parent by 14.1% to ¥4.91 billion...

Curves Holdings Completes ¥2.76 Billion Share Buyback Program

Aug 25, 2026

Curves Holdings Co., Ltd. has completed a scheduled share buyback program, acquiring 498,500 common shares between August 1 and August 24, 2026 for a total of 472,114,800 yen through market purchases under a discretionary transaction agreement. This...

Curves Holdings to Cancel 1 Million Treasury Shares, Tightening Capital Structure

Aug 17, 2026

Curves Holdings Co., Ltd. said its Board of Directors has approved the cancellation of 1,000,000 of its common shares, representing about 1.1% of shares outstanding prior to the move. The cancellation, conducted under Japan’s Companies Act, is schedu...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 14, 2026

Curves Holdings Co., Ltd. AI Stock Analysis