{"id":968479,"date":"2026-05-28T18:46:18","date_gmt":"2026-05-28T22:46:18","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/medirom-group-reports-q1-2026-results\/"},"modified":"2026-05-28T18:46:18","modified_gmt":"2026-05-28T22:46:18","slug":"medirom-group-reports-q1-2026-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/medirom-group-reports-q1-2026-results\/","title":{"rendered":"MEDIROM Group Reports Q1 2026 Results"},"content":{"rendered":"
\n

TOKYO, May 28, 2026 (GLOBE NEWSWIRE) — This report presents an overview of our business performance and key performance indicators (KPIs) for the first quarter of 2026 (January\u2013March 2026). It also highlights trends over the past five quarters (2025Q1\u20132026Q1) to provide investors with a broader perspective. Data includes salons with comparable financial and customer metrics.<\/p>\n

\n 1. Salon Operation Business<\/strong>\n <\/p>\n

In 2026Q1, our salon business recorded an Average Revenue Per Customer of 7,822 JPY (+7.7% YoY), exceeding the Japanese industry average of 4,806 JPY by approximately 3,016 JPY.(*1) This performance reflects the strength of our service offering, supported by our training infrastructure and an educational curriculum refined over 25 years.<\/p>\n

\n \n <\/p>\n

Over 120 diverse training courses
(Technical skills, Hospitality, Knowledge, Management)
Continuous training system even after therapist debut<\/p>\n

\n Strategy Update: Hybrid Staffing Model<\/strong>\n <\/p>\n

In addition, to support sustainable growth in our store operations and further enhance service quality, we have been strategically upgrading the working styles of our store staff (therapists) since 2025. In addition to traditional employment models centered on hourly wages and fixed salaries, we have been promoting the adoption and expansion of a professional contractor (independent contractor) model.<\/p>\n

\n Key Performance Indicators (KPIs)<\/strong>\n <\/p>\n\n\n\n\n\n\n\n
Metric<\/td>\n2025Q1<\/td>\n2025Q2<\/td>\n2025Q3<\/td>\n2025Q4<\/td>\n2026Q1<\/td>\nYoY Change<\/td>\n<\/tr>\n
\n Number of Salons<\/strong> (*2)<\/td>\n308<\/td>\n304<\/td>\n299<\/td>\n292<\/td>\n287<\/td>\n-21 Salons<\/td>\n<\/tr>\n
\n Total Customers<\/strong> (*3)<\/td>\n223k<\/td>\n234k<\/td>\n232k<\/td>\n208k<\/td>\n192k<\/td>\n-13.9%<\/td>\n<\/tr>\n
\n Revenue Per Customer<\/strong> (*4)<\/td>\n7,263<\/td>\n7,259<\/td>\n7,560<\/td>\n7,830<\/td>\n7,822<\/td>\n+7.7%<\/td>\n<\/tr>\n
\n Repeat Ratio<\/strong> (*5)<\/td>\n77.1%<\/td>\n77.1%<\/td>\n76.8%<\/td>\n78.3%<\/td>\n78.0%<\/td>\n+0.9pt<\/td>\n<\/tr>\n
\n Operating Ratio<\/strong> (*6)<\/td>\n45.3%<\/td>\n45.9%<\/td>\n46.1%<\/td>\n43.8%<\/td>\n44.0%<\/td>\n-1.3pt<\/td>\n<\/tr>\n<\/table>\n

\n
*(1) Industry Average: Weighted average calculated based on data published by Recruit Co., Ltd., Hot Pepper Beauty Academy, \u201cBeauty Census 2024 First Half (Relaxation Salon Edition) Report.\u201d
*(2) Number of Salons: Total number of directly operated and franchise salons at the end of each quarter.
*(3) Total Customers: Number of customers visiting the salons.
*(4) Revenue Per Customer: Average revenue calculated by dividing total sales by the number of customers.
*(5) Repeat Ratio: Ratio of repeat customers to total customers.
*(6) Operating Ratio: Ratio of treatment time to total working hours of therapists (excluding break times).<\/p>\n

The average number of stores included in the data aggregation for each quarter was 284 in 25Q1, 281 in 25Q2, 276 in 25Q3, 273 in 25Q4, and 268 in 26Q1.<\/p>\n

As a result of advancing both the transition to contractor agreements and the hiring of independent contractors, the proportion of independent contractors among therapists reached 45.1% as of Q1 2026, an increase from 29.8% in the same period of the previous year (*7).<\/p>\n

(*7) The number of therapists includes employees and independent contractors who worked as of the end of March 2025 and March 2026, respectively, at MEDIROM Wellness Co., Ltd. and SAWAN Co., Ltd.<\/p>\n

Furthermore, to support sustainable growth in our salon business and enhance service quality, we have been implementing a strategic update to our staffing model since 2025. In addition to the conventional employment model based on hourly and fixed wages, we have been expanding the use of professional contractor (independent contractor) arrangements. As a result, independent contractors accounted for 53% of our total workforce as of the end of the first quarter.<\/p>\n

This model introduces a performance-based compensation structure without fixed salary caps, allowing therapists to better align their earnings with their efforts. We believe this approach supports higher motivation and contributes to improved retention. Through this hybrid staffing structure, we aim to build a foundation that enables diverse talent to thrive over the long term while maintaining stable KPI performance.<\/p>\n

Looking ahead, we plan to continue to optimize this hybrid staffing model to further enhance therapist earnings. At the same time, we aim to strengthen our high-value, high-margin business model and enhance our corporate value over the medium to long term.<\/p>\n

\n 2. World ID<\/strong>\n <\/p>\n

World ID is a global digital identity protocol developed by Tools for Humanity, co-founded by Sam Altman and Alex Blania, to provide \u201cProof of Personhood\u201d in the age of AI.<\/p>\n

In February 2026, we commenced a strategic partnership with Tools for Humanity under a Master Service Agreement. As part of this initiative, we have continued to deploy Orb devices primarily at Re.Ra.Ku\u00ae locations, resulting in approximately 31,000 total verifications as of the end of 2026Q1.<\/p>\n

The decrease in authentication numbers during the first quarter was mainly due to the January\u2013March period being a seasonal slow period, combined with a lower number of business operating days.<\/p>\n

\n World ID Verification Trends<\/strong>\n <\/p>\n\n\n\n
Metric<\/td>\n2025Q1<\/td>\n2025Q2<\/td>\n2025Q3<\/td>\n2025Q4<\/td>\n2026Q1<\/td>\n<\/tr>\n
\n New Verifications<\/strong> (*8)<\/td>\n–<\/td>\n108<\/td>\n6,604<\/td>\n13,873<\/td>\n10,552<\/td>\n<\/tr>\n<\/table>\n

\n
*(8) New Verifications: Number of first-time World ID verifications recorded in each quarter.<\/p>\n

\n \n <\/p>\n

\n \n <\/p>\n

\n \n <\/p>\n

World ID Promotion Event Highlights The “Free 5-Minute Shoulder Massage” at the storefront has become a popular attraction.<\/p>\n

\n 3. HealthTech Business (Lav\u00ae)<\/strong>\n <\/p>\n

Our HealthTech division offers \u201cLav\u00ae,\u201d a fully remote Specified Health Guidance service delivered through web-based interviews and app-based chat functions.<\/p>\n

Therapists from our Re.Ra.Ku\u00ae salons also serve as Lav\u00ae coaches, creating operational synergies across our businesses. This structure reduces the need for external recruitment and provides additional income opportunities for therapists, contributing to a high-margin business model.<\/p>\n

As of 2026Q1, we serve 106 health insurance providers, with cumulative users reaching 13,226.<\/p>\n

\n \n <\/p>\n

Specified Health Guidance is a support program designed to prevent lifestyle-related diseases associated with factors such as unbalanced diet, lack of sleep, insufficient exercise, smoking, and stress.<\/p>\n

Based on the results of \u201cSpecified Health Checkups\u201d\u2014health examinations focused on metabolic syndrome for individuals aged 40 to 74\u2014specialized staff, including public health nurses and registered dietitians, provide guidance to help high-risk individuals review and improve their lifestyle habits. Since April 2008, medical insurers, including National Health Insurance and employee health insurance providers, have been required to implement both \u201cSpecified Health Checkups\u201d and \u201cSpecified Health Guidance.\u201d<\/p>\n

The Ministry of Health, Labour and Welfare has set national targets of at least 70% for health checkup participation and 45% for health guidance participation among eligible individuals. However, actual rates for fiscal year 2021 were 56.5% and 24.6%, respectively, indicating significant room for future market expansion.<\/p>\n

The adoption of ICT in Specified Health Guidance has been increasing steadily, and in recent years\u2014partly driven by the COVID-19 pandemic\u2014the adoption rate has exceeded 50% (according to the Japan Health Guidance Association).<\/p>\n

\n \n <\/p>\n

We have been operating in the Specified Health Guidance business within the ICT sector since fiscal year 2019. As of the end of March 2026, we have established partnerships with 106 insurers, and the cumulative number of users has surpassed 13,000, reaching a total of 13,226.<\/p>\n

\n \n <\/p>\n

Furthermore, we are expanding our business to meet the diversifying needs of health insurance associations by seeking to grow our new contracts for voluntary lifestyle improvement programs. These programs target younger individuals under the age of 40, extending beyond the standard age range for Specified Health Guidance (40 and older).<\/p>\n

The coaches responsible for Lav\u00ae program guidance are primarily comprised of active therapists from our salon business (Re.Ra.Ku\u00ae Group). By establishing a system where existing group staff can participate as coaches, we reduce new recruitment costs for coaches and can further our efforts to achieve a profitability model. Consequently, therapists who serve as coaches receive higher compensation, which effectively boosts their overall income.<\/p>\n

Since this coaching role is exclusively available to therapists currently working at Re.Ra.Ku\u00ae, the model encourages long-term retention, particularly among high-earning therapists. Our core Re.Ra.Ku\u00ae business and the Lav\u00ae business create close internal synergies, and this overall business model structure serves as one of our key competitive advantages.<\/p>\n

\n \n <\/p>\n

\n HealthTech KPI Trends<\/strong>\n <\/p>\n\n\n\n\n
Metric<\/td>\n2025Q1<\/td>\n2025Q2<\/td>\n2025Q3<\/td>\n2025Q4<\/td>\n2026Q1<\/td>\nYoY Change<\/td>\n<\/tr>\n
\n Insurers<\/strong>\n <\/td>\n98<\/td>\n101<\/td>\n101<\/td>\n102<\/td>\n106<\/td>\n+8.2%<\/td>\n<\/tr>\n
\n Cumulative Users<\/strong> (*9)<\/td>\n9,701<\/td>\n10,651<\/td>\n11,234<\/td>\n12,398<\/td>\n13,226<\/td>\n+3,525<\/td>\n<\/tr>\n<\/table>\n

\n
*(9) Cumulative Users: The cumulative number of eligible individuals who have started using Specified Health Guidance. The Year-on-Year (YoY) Change\/Increase reflects the difference in the cumulative total compared to the 2025 Q1 level.<\/p>\n

\n \n <\/p>\n

Forward-Looking Statements Regarding MEDIROM<\/p>\n

Certain statements in this press release are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about MEDIROM\u2019s possible or assumed operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as \u201cmay,\u201d \u201cwill,\u201d \u201cshould,\u201d \u201cdesignate,\u201d \u201ctarget,\u201d \u201caim,\u201d \u201chope,\u201d \u201cexpect,\u201d \u201ccould,\u201d \u201cintend,\u201d \u201cplan,\u201d \u201canticipate,\u201d \u201cestimate,\u201d \u201cbelieve,\u201d \u201ccontinue,\u201d \u201cpredict,\u201d \u201cproject,\u201d \u201cpotential,\u201d \u201cgoal,\u201d or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to MEDIROM\u2019s future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause MEDIROM\u2019s actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond MEDIROM\u2019s control and which could, and likely will, affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects MEDIROM\u2019s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to MEDIROM\u2019s operations, results of operations, growth strategy and liquidity. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this press release include:<\/p>\n