TOKYO, May 15 (Pulse News Wire) – Convano Inc. (6574.T) reported improved revenue and operating profit for its fiscal year ending March 31, 2026, compared to the previous year.
However, the company recorded a significant cryptocurrency-related loss due to a decline in Bitcoin valuation. For the fiscal year ended March 31, 2026, Convano's revenue increased by ¥320 million to ¥3.420 billion, while operating profit rose to ¥69 million from a loss of -¥144 million in the prior year. Despite these improvements, net income turned into a loss of ¥3.743 billion, compared to a loss of ¥147 million in the previous year. The primary reason for the lower net profit was a non-cash impairment charge of ¥4.804 billion related to the company’s strategic holding of cryptocurrencies, specifically Bitcoin. This charge, classified as extraordinary losses, did not affect cash flow from operations. In addition to the cryptocurrency loss, Convano also incurred fixed asset disposal losses amounting to ¥1 million.
Overall, extraordinary losses totaled ¥4.806 billion for the fiscal year, up from ¥3 million in the previous year. Despite the lower net profit, Convano saw substantial improvements in its nail salon business through new store openings and enhanced profitability of existing stores. Operating expenses remained relatively stable, contributing to a shift from a loss to a profit in operating income. Convano Inc. (6574.T) highlighted that the cryptocurrency-related impairment charges are non-cash items and do not impact ongoing operational activities. The company expects future recovery in cryptocurrency prices to positively reflect in its financial statements.
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