LY Corporation (YAHOF) Q2 2026 Earnings Report

The call was strongly positive overall. LY Corporation reported double-digit revenue and adjusted EBITDA growth, raised revenue, profit, EPS and dividend guidance, and cited structural profitability improvements across its businesses. The main negatives were continued weakness in display and search advertising, challenges in Thailand and new strategic businesses, reported net profit distortion from prior-year one-offs, and the still-early validation phase for Agent i monetization and store DX functionality.

LY Corporation raised its full-year guidance, with revenue forecast increased by 14.8% year-on-year from JPY 2.24 trillion to JPY 2.33 trillion and adjusted EBITDA forecast increased by 28.9% year-on-year from JPY 585 billion to JPY 640 billion; Commerce revenue forecast is JPY 1.06 trillion, adjusted EBITDA is 33.6% year-on-year, major increase, strategic business adjusted EBITDA forecast is JPY 160 billion, 69.1% up year-on-year, and adjusted EPS was raised from JPY 30 to JPY 35. The annual dividend is planned to change from JPY 11 to JPY 12 per share, with overall return of 3.4%; Media revenue was revised by minus JPY 20 billion and adjusted EBITDA by positive JPY 5 billion, Commerce revenue by positive JPY 130 billion and profit by JPY 16 billion positive, and strategic EBITDA by positive JPY 31.5 billion. For Media, search ads are expected at minus 6% versus minus 5% at the beginning of the fiscal year, while display ads moved from 3% to 4% positive to down 5%; for the next fiscal year, at least double digit or higher than 10% or 10% or higher profitability growth can be realized in a sustainable manner, and reuse transaction value is expected to continue with double-digit growth.