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LY Corporation (YAHOY)
OTHER OTC:YAHOY
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LY Corporation
(OTC:YAHOY)
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Rating:61Neutral
Price Target:
$5.50
▲(2.80% Upside)
The score is anchored by mixed financials: strong margins and a stable balance sheet but material revenue and free-cash-flow growth declines. Technicals are weak with the stock trading below major moving averages, while valuation is reasonable. Earnings call tone is moderately positive on growth initiatives and cost actions, tempered by search-ad weakness and operational/security risks.
LY Corporation (YAHOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.29B
Dividend Yield1.85%
Average Volume (3M)6.59K
Price to Earnings (P/E)13.1
Beta (1Y)-0.07
Revenue Growth7.22%
EPS Growth110.36%
CountryUS
Employees28,196
SectorN/A
Sector StrengthN/A
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.18
Shares Outstanding3,441,379,200
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 Cap210.21
Enterprise Value/Revenue1.82
Enterprise Value/Gross Profit2.50
Enterprise Value/Ebitda6.73
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:Nov 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 04, 2026
Earnings Call Sentiment Positive
The call presented solid overall financial results with revenue up 9.4% YoY and adjusted EBITDA up 11.3% YoY, led by strong performance in strategic/payment businesses (PayPay: revenue +35% YoY, EBITDA +52.1% YoY) and e-commerce transaction growth. Management also outlined clear strategic priorities (AI agentization, Official Accounts and MINI Apps), a plan to reallocate resources toward growth areas, and a medium-term cost reduction target of JPY 15 billion. Offsetting these positives are operational and market challenges: a ransomware/data leakage incident at ASKUL, a persistent decline in search advertising that is expected to continue into H2, profit pressure in Commerce from promotional spend (including front-loaded hometown tax effects), rising LLM/AI expenses, and ambitious execution risks tied to the OA/MINI Apps monetization timeline. Overall, positive underlying business momentum and strategic clarity outweigh near-term risks and execution hurdles, but security and search-ad weakness are notable negatives to monitor.Q2-2025 Updates
Positive Updates
Consolidated Revenue Growth
Consolidated revenue for Q2 FY2025 was JPY 505.7 billion, up 9.4% year-over-year, demonstrating top-line recovery and scale.
Adjusted EBITDA and Margin Expansion
Consolidated adjusted EBITDA rose 11.3% YoY to JPY 125.4 billion, delivering double-digit profit growth and an improved margin versus the prior year; adjusted EBITDA and EPS remained on track with guidance.
Strong Performance in Strategic (Payments/Financial) Business — PayPay
Strategic businesses driven by PayPay consolidated recorded revenue of JPY 109.7 billion (up 35% YoY) and adjusted EBITDA of JPY 22.9 billion (up 52.1% YoY). Management highlighted PayPay consolidated sales up ~30.4% YoY and consolidated EBITDA more than doubled for the business.
Commerce Business Transaction and Revenue Growth
Commerce revenue was JPY 216.6 billion (up 7.2% YoY). Domestic shopping transaction value rose 13.1% YoY and Reuse grew 15.7% YoY, supported by Yahoo! marketplace growth and consolidation of BEENOS.
Consolidated Advertising and Commerce Ad Growth
Total consolidated advertising-related revenue grew 2.4% YoY, with commerce advertising delivering double-digit growth driven by increased transaction value.
Corporate Actions — Share Repurchase and Dividend Increase
Completed share repurchase and cancellation in H1, reducing shares outstanding and raising the annual dividend from JPY 7.0 to JPY 7.3.
Progress on LINE App Revamp and Mini App / Official Account Adoption
LINE app revamp (talk, shopping and wallet tabs) rolled out in phases; home tab refresh test scheduled within the year. MINI Apps count increased 1.5x and users 1.6x; Official Accounts: 1.3 million active in Japan with 310,000 paid accounts and a mid-term target to expand addressable accounts to ~5 million.
AI Agentization Traction and Monetization Start
AI services DAU reached 8.6 million in October (examples: AI answers on Yahoo! JAPAN search, LINE AI Talk Suggestions). Monetization has started for AI Talk Suggest; goal is to expand AI agents to 100 million daily users over time.
Medium-Term Cost Optimization Plan
Management targets a JPY 15 billion reduction in fixed costs by end of fiscal 2026 through headcount/resource reallocation to growth areas (AI agents, Official Accounts, MINI Apps) and operational efficiencies.
Negative Updates
Ransomware Incident and Data Leakage at ASKUL
A ransomware attack on group company ASKUL on October 19 caused a system failure and partial information leakage; ASKUL is investigating scope and recovery while LY Corporation emphasized cooperation and plans to strengthen group-wide information security—this is a material operational and reputational risk.
Search Advertising Weakness and Guidance Risk
Search advertising revenue contracted and was the primary reason consolidated revenue missed guidance slightly; management cited weak budget allocation from a major client and other large advertisers reducing spend. Outlook expects Q3 and Q4 to see similar weakness as Q2.
Media Business Revenue and Profit Decline
Media segment reported declines in both revenue and adjusted EBITDA in Q2, driven by search ad contraction despite cost-saving efforts; search/display are treated as structurally tougher areas for high growth.
Commerce Profitability Impacted by Promotional Spend
Commerce adjusted EBITDA decreased YoY (JPY 33.3 billion reported) due to increased promotional expenses related to the hometown tax donation program; management noted the profit decline narrowed Q-on-Q but promotional spend pressured margins in the quarter.
Hometown Tax Program Front-Loading Risks
Front-loading of hometown tax donation activity boosted Q2 Yahoo! Shopping growth (reported ~19% in Q2), with the program contributing late high-single to mid-single digit growth — management warned this creates a reversal risk and slower growth in H2.
Rising AI/LLM Costs and Near-Term Expense Headwinds
LLM-related costs of about JPY 10 billion are expected this fiscal year with rising LLM commission next year; while management targets JPY 15 billion fixed cost reductions, LLM expense is a headwind and will require offsetting efficiencies.
Execution and Ambition Risk for OA/MINI Apps Rollout
The plan to double OA + MINI Apps revenue from JPY 140 billion to JPY 280 billion in ~3 years depends on successful monetization, SaaS launches (targeted 1H 2026), scaling MINI Apps/MAU and reallocation of resources; management acknowledged monetization mainly begins next fiscal year, making near-term execution and investment critical.
Company Guidance
LY Corporation’s Q2 FY2025 guidance highlighted consolidated revenue of JPY 505.7bn (+9.4% Y/Y) and adjusted EBITDA of JPY 125.4bn (+11.3% Y/Y), with adjusted EBITDA up JPY 11.7bn (BEENOS and LINE Bank Taiwan contributed JPY 0.9bn); total ad revenue grew 2.4%; Commerce revenue was JPY 216.6bn (+7.2%) with adjusted EBITDA JPY 33.3bn (domestic shopping GMV +13.1%, Reuse +15.7%); Strategic businesses delivered JPY 109.7bn revenue (+35%) and JPY 22.9bn adjusted EBITDA (+52.1%) (PayPay consolidated sales +30.4% Y/Y, EBITDA >2x); product and growth targets include 100 million DAU for AI agents (8.6m DAU in Oct), MINI App MAU 25m→75m (apps ~35k, apps +1.5x, users +1.6x), Official Accounts 1.3m active / 310k paid with a 5m addressable base and OA revenue JPY 100bn Japan (JPY 140bn global) with a plan to double to JPY 280bn, plus a company-wide fixed-cost reduction target of JPY 15bn by end-FY2026 (LLM costs ≈ JPY 10bn this year), a shift to allocate 50% of headcount to growth areas by FY2028, a dividend raise to JPY 7.3 (from JPY 7) after share cancellation on Sep 3, and the outlook that search-ad weakness will likely persist into H2 while hometown-tax-driven Commerce growth may slow in Q3.LY Corporation Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
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LY Corporation Technical Analysis
Negative
5.35
Price Trends
5.29
Negative
5.71
Negative
6.42
Negative
Market Momentum
-0.06
Negative
41.05
Neutral
60.57
Neutral
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 5.21, above the 50-day MA of 5.29, and below the 200-day MA of 6.42, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 41.05 is Neutral, neither overbought nor oversold. The STOCH value of 60.57 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
70 Outperform | $41.23B | 19.85 | 42.43% | 1.38% | 4.89% | 17.30% | |
69 Neutral | $28.72B | 24.81 | 47.97% | ― | 5.45% | 4.28% | |
67 Neutral | $26.89B | 24.70 | 45.18% | 1.80% | 4.26% | 0.73% | |
61 Neutral | $17.29B | 13.05 | 6.86% | 1.85% | 7.22% | 110.36% | |
61 Neutral | $12.08B | 60.11 | 59.58% | ― | 9.80% | -46.84% | |
57 Neutral | $5.23B | 37.02 | ― | ― | 1.98% | -20.98% |
* Sector Average
YAHOY
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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.