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LY Corporation (YAHOY)
OTHER OTC:YAHOY
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LY Corporation
(OTC:YAHOY)
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Rating:68Neutral
Price Target:
$5.50
▲(2.80% Upside)
Action:ReiteratedDate:02/05/26
The score is primarily supported by strengthening financial performance (accelerating growth, margin expansion, and materially improved free cash flow) and constructive guidance/cost actions from the latest earnings call. These positives are tempered by clearly bearish technical signals and moderate balance-sheet risk from rising leverage, while valuation remains supportive but not a dominant driver.
LY Corporation (YAHOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.83B
Dividend Yield1.85%
Average Volume (3M)6.59K
Price to Earnings (P/E)11.6
Beta (1Y)-0.05
Revenue Growth7.22%
EPS Growth110.36%
CountryUS
Employees28,196
SectorN/A
Sector StrengthN/A
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.09
Shares Outstanding3,441,499,000
10 Day Avg. Volume0
30 Day Avg. Volume6,587
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)1.24
Price to Sales (P/S)1.94
P/FCF Ratio8.86
Enterprise Value/Market Cap230.67
Enterprise Value/Revenue1.82
Enterprise Value/Gross Profit2.47
Enterprise Value/Ebitda6.85
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
LY Corporation Business Overview & Revenue Model
Company DescriptionLY Corporation (YAHOY) is a diversified technology company specializing in innovative solutions across multiple sectors, including telecommunications, software development, and consumer electronics. The company focuses on creating cutting-edge products and services that enhance connectivity and improve user experiences. Its core offerings include high-performance networking equipment, cloud-based software solutions, and smart consumer devices designed to meet the evolving needs of both individual and enterprise customers.
How the Company Makes MoneyLY Corporation generates revenue through multiple streams, primarily by selling its telecommunications equipment and software solutions to businesses and consumers. The company earns significant income from direct sales, licensing agreements, and subscription services for its software products. Additionally, LY Corporation has established strategic partnerships with major tech firms and telecommunications providers, enabling it to expand its market reach and enhance its product offerings. These collaborations often lead to joint ventures and co-branded products, further contributing to the company's revenue. The recurring nature of subscription-based services provides a stable income source, while ongoing research and development efforts ensure that LY Corporation remains competitive in the rapidly evolving tech landscape.
LY Corporation Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presented materially stronger underlying operational performance when excluding the ASKUL outage: double-digit revenue and EBITDA growth in the underlying business, strong Commerce and Strategic (PayPay) momentum, and clear targets for FY'26 margin expansion and FY'28 monetization. However, consolidated Q3 results were slightly down due to the ASKUL ransomware impact, Media search-ad weakness, increased near-term SG&A/AI costs, and limited immediate contribution from MINI Apps/SaaS. Management communicated concrete cost-reduction plans and a multi-year roadmap, but short-term uncertainty from ASKUL and media ad softness temper the tone.Q3-2025 Updates
Positive Updates
Strong Underlying Q3 Growth Excluding ASKUL
Excluding ASKUL, Q3 revenue rose 15.7% year-on-year and adjusted EBITDA increased 11.2% year-on-year, indicating solid underlying business momentum despite consolidated headwinds.
Consolidated Fiscal Outlook Maintained
FY'25 outlook: revenue projected at ~JPY 2.0 trillion and adjusted EBITDA ~JPY 500 billion after factoring ASKUL outage; FY'26 target is a 10%–15% increase in adjusted EBITDA (JPY 550–575 billion).
Commerce Segment Outperformance (Ex-ASKUL)
Excluding ASKUL, Commerce revenue grew 31% year-on-year and adjusted EBITDA grew 15.5% year-on-year. LINE Yahoo! Commerce revenue rose 64.4% YoY (driven by consolidations and transaction expansion).
Strategic / PayPay Momentum
Strategic segment revenue rose ~30% YoY with margin expansion to 22.2%. PayPay consolidated revenue grew ~24% YoY; consolidated GMV and revenue grew >20% YoY and consolidated EBITDA rose 59.1% YoY to over JPY 30 billion in the quarter.
Mini Apps and Official Accounts Traction
MINI Apps count increased 57.8% YoY and MAUs grew 63.8% YoY. Official Accounts expected to deliver stable 10%–15% growth and serve as base for layered monetization (MINI Apps → SaaS).
E‑commerce Transaction Value Resilience
Consolidated e-commerce transaction value was up 2.5% YoY (including ASKUL); shopping transaction value up 2% YoY despite timing shifts in hometown tax payments.
Concrete Cost-Reduction Targets
Company aims for JPY 15 billion company-wide fixed-cost reductions and longer-term infrastructure savings from LINE/Yahoo! technology foundation integration to support margin expansion.
Medium-Term Monetization Ambition
Target to double Media-related revenue from JPY 140 billion to JPY 280 billion by FY'28, with incremental contribution expected from MINI Apps and SaaS over FY'27–FY'28.
Negative Updates
ASKUL Ransomware Outage Impact
A subsidiary (ASKUL) suffered a system outage due to a ransomware attack, materially depressing consolidated results and introducing uncertainty; FY'25 and near-term consolidated figures were presented reflecting this impact.
Consolidated Q3 Slight Decline
On a consolidated basis Q3 revenue declined 0.7% year-on-year and adjusted EBITDA decreased 2.3% year-on-year, driven in part by the ASKUL disruption.
Media: Search Ad Weakness and Margin Pressure
Search advertising fell 9.5% YoY; total advertising revenue only grew 0.4% and Media adjusted EBITDA declined 2.8% YoY. Increased sales promotion and Gen AI-related expenses offset some cost reductions.
Higher SG&A and AI-Related Costs
SG&A rose due to PayPay consolidation and Commerce activity; Media segment AI-related costs are ~JPY 1 billion+ and contributed to near-term margin pressure.
Early Stage Monetization for MINI Apps / SaaS
MINI Apps and SaaS remain nascent for near-term revenue: management expects only ~JPY 1.0–1.5 billion contribution in FY'26, with meaningful scale planned in FY'27–FY'28.
Security Remediation Timeline and Integration Work Remaining
Security measures related to prior incidents are scheduled to complete end of March, but some integrations (e.g., ID linking across PayPay/LINE/Yahoo!) remain unfinished, delaying potential deeper collaboration benefits.
Account Ads Using Points Weakness
Account ads that rely on point-based promotions are described as 'not so active' year-on-year, indicating weaker demand in that subcategory (though lower margin so limited profit impact).
Company Guidance
LY Corporation guided that FY‑25 revenue will be about JPY 2.0 trillion and adjusted EBITDA around JPY 500 billion (adjusted EPS to remain within initial guidance), noting the FY‑25 outlook reflects the ASKUL system‑outage impact; for FY‑26 management is targeting a 10–15% increase in adjusted EBITDA (JPY 550–575 billion). Management expects next‑year profit uplifts of roughly JPY 10 billion for Media, JPY 10 billion for Commerce (excluding ASKUL), and JPY 20 billion for Strategic (mainly PayPay), plus about JPY 15 billion of company‑wide fixed‑cost savings (≈JPY 50 billion+ total, with ASKUL recovery as upside). Relevant Q3 metrics cited as supporting this outlook included, excluding ASKUL, Q3 revenue +15.7% Y/Y and adjusted EBITDA +11.2% Y/Y (consolidated Q3: revenue −0.7% Y/Y, adj. EBITDA −2.3%), Commerce ex‑ASKUL revenue +31% Y/Y and adj. EBITDA +15.5% Y/Y (LINE/Yahoo! Commerce +64.4% Y/Y), PayPay consolidated revenue +24% Y/Y with GMV and revenue growth >20% and quarter‑ly consolidated EBITDA +59.1% Y/Y to >JPY 30 billion; additional operational metrics cited: total ad revenue roughly flat (+0.4% Y/Y), account ads +13.8% Y/Y, search ads −9.5% Y/Y, AI‑related SG&A ~JPY 1 billion+, AI search ad share ~10%+, MINI Apps count +57.8% Y/Y and MAUs +63.8% Y/Y, and a FY‑28 ambition to grow Official Accounts/MINI Apps/SaaS from JPY 140 billion to JPY 280 billion.LY Corporation Financial Statement Overview
Summary
Fundamentals are improving with ~28% TTM revenue growth, expanding profitability (operating margin ~16.7%, net margin ~10.3%), and a sharp rebound in free cash flow with strong cash-quality (FCF/NI ~0.91). Offsetting this, leverage has increased (D/E ~0.67) and operating cash flow covers only ~24% of total debt, keeping balance-sheet risk and ROE (~6.9%) as key watch items.Income Statement
TTM (Trailing-Twelve-Months) revenue accelerated to ~28% growth, showing strong top-line momentum. Profitability is solid for the sector, with very high gross margin (~73%) and improved operating profitability versus recent annual periods (operating margin ~16.7% TTM vs ~14.2% in FY2025). Net margin also improved to ~10.3% TTM (from ~8.0% FY2025), indicating better earnings conversion. The main weakness is that profitability has been somewhat volatile over the multi-year period (net margin ranged from ~4.9% to ~10.7%), suggesting earnings sensitivity to costs or mix.82
Very Positive
Balance Sheet
The balance sheet looks reasonably supported by equity, with debt-to-equity at ~0.67 TTM (moderate leverage). However, leverage has risen versus FY2025 (~0.57), driven by higher total debt, which increases financial risk if conditions soften. Returns on shareholder capital are positive but not standout: return on equity is ~6.9% TTM (up from ~5.1% FY2025), indicating improving efficiency but still mid-tier overall.70
Positive
Cash Flow
Cash generation is a clear positive in the most recent period: TTM free cash flow is strong and nearly matches earnings (free cash flow to net income ~0.91), suggesting good cash-quality profits. Free cash flow growth is also very strong TTM (as provided), reflecting meaningful improvement versus earlier years where free cash flow was negative (FY2022–FY2024). The key watch-out is cash flow relative to debt remains modest (operating cash flow covers only ~24% of total debt TTM), so deleveraging capacity is improving but not yet robust.74
Positive
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LY Corporation Technical Analysis
Negative
5.35
Price Trends
5.18
Negative
5.43
Negative
6.20
Negative
Market Momentum
-0.12
Positive
41.81
Neutral
16.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YAHOY, the sentiment is Negative. The current price of 5.35 is above the 20-day moving average (MA) of 5.06, above the 50-day MA of 5.18, and below the 200-day MA of 6.20, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 41.81 is Neutral, neither overbought nor oversold. The STOCH value of 16.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YAHOY.
LY Corporation Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
69 Neutral | $30.45B | 26.23 | 47.97% | ― | 5.45% | 4.28% | |
68 Neutral | $15.83B | 11.59 | 6.86% | 1.85% | 7.22% | 110.36% | |
67 Neutral | $28.04B | 25.86 | 45.18% | 1.80% | 4.26% | 0.73% | |
63 Neutral | $38.21B | 19.66 | 40.85% | 1.38% | 4.89% | 17.30% | |
63 Neutral | $10.57B | 54.64 | 59.58% | ― | 9.80% | -46.84% | |
55 Neutral | $5.24B | 39.38 | ― | ― | 1.98% | -20.98% |
* Sector Average
YAHOY
LY Corporation
4.98
-1.74
-25.85%
EBAY
eBay
90.86
27.10
42.50%
TSCO
Tractor Supply
51.84
-2.57
-4.72%
ULTA
Ulta Beauty
684.79
318.43
86.92%
ETSY
Etsy
54.88
3.69
7.21%
CHWY
Chewy
27.42
-9.84
-26.41%
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.