Revenue growth remains highly erratic, evidenced by a 9.3% contraction in 2025Q2 alongside a compressed operating margin of -25.8%.
| Sales/Revenue | 15.04B | 8.3B | 6.83B | 6.95B | 5.41B | 3.34B | 3.91B | 3.43B |
| Revenue Growth % | 46.49% | 21.55% | -1.81% | 28.54% | 61.89% | -14.5% | 13.84% | - |
| Cost of Goods Sold | 11.56B | 6.05B | 5.26B | 5.05B | 3.99B | 2.91B | 2.96B | 2.48B |
| COGS % of Revenue | - | 72.93% | 77.02% | 72.64% | 73.84% | 87.16% | 75.67% | 72.13% |
| Gross Profit | 3.48B | 2.25B | 1.57B | 1.9B | 1.42B | 428.95M | 950.76M | 956.87M |
| Gross Margin % | 23.13% | 27.07% | 22.98% | 27.36% | 26.16% | 12.84% | 24.33% | 27.87% |
| Gross Profit Growth % | - | 43.18% | -17.53% | 34.41% | 229.97% | -54.88% | -0.64% | - |
| Operating Expenses | 4.39B | 2.26B | 1.96B | 1.81B | 1.89B | 1.18B | 916.41M | 883.6M |
| OpEx % of Revenue | - | 27.28% | 28.71% | 25.96% | 34.86% | 35.16% | 23.45% | 25.74% |
| Selling, General & Admin | 4.37B | 2.24B | 1.96B | 1.81B | 1.81B | 1.07B | 871.86M | 842.82M |
| SG&A % of Revenue | - | 27.01% | 28.71% | 25.96% | 33.47% | 31.98% | 22.31% | 24.55% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 22.87M | 0 | 0 | 75.21M | 106.5M | 44.55M | 40.78M |
| Operating Income | -914.05M | -18.1M | -391.58M | 96.97M | -470.59M | -746.09M | 34.35M | 73.27M |
| Operating Margin % | -6.08% | -0.22% | -5.73% | 1.39% | -8.7% | -22.33% | 0.88% | 2.13% |
| Operating Income Growth % | - | 95.38% | -503.83% | 120.61% | 36.93% | -2272.02% | -53.12% | - |
| EBITDA | -227.45M | 271.94M | -138.98M | 281.02M | -344.34M | -683.8M | 80.52M | 117.53M |
| EBITDA Margin % | -1.51% | 3.28% | -2.04% | 4.04% | -6.37% | -20.46% | 2.06% | 3.42% |
| EBITDA Growth % | -178.2% | 295.66% | -149.46% | 181.61% | 49.64% | -949.19% | -31.49% | - |
| D&A (Non-Cash Add-back) | 686.59M | 290.04M | 252.59M | 184.06M | 126.24M | 62.29M | 46.17M | 44.27M |
| EBIT | -798.49M | 97.46M | 57.49M | 189.57M | -402.53M | -613.46M | 78.9M | 114.05M |
| Net Interest Income | -93.05M | -49.74M | -35.76M | -3.73M | -11.11M | -11.9M | -12.26M | -14.7M |
| Interest Income | 1.12M | 8K | 1.11M | 6.07M | 839K | 1.33M | 1.34M | 785K |
| Interest Expense | 94.17M | 49.74M | 36.87M | 9.8M | 11.95M | 13.23M | 13.59M | 15.48M |
| Other Income/Expense | 662.3M | 65.81M | 412.2M | 82.81M | 56.11M | 119.4M | -1.05M | 18.29M |
| Pretax Income | -251.75M | 47.71M | 20.62M | 179.77M | -414.48M | -626.69M | 33.3M | 91.56M |
| Pretax Margin % | -1.67% | 0.57% | 0.3% | 2.59% | -7.66% | -18.75% | 0.85% | 2.67% |
| Income Tax | -188.51M | -90.48M | -94.43M | 30.81M | 576.25M | -87.52M | 15.96M | 25.25M |
| Effective Tax Rate % | 74.88% | -189.63% | -457.89% | 17.14% | -139.03% | 13.97% | 47.94% | 27.58% |
| Net Income | -51.82M | 148.76M | 115.05M | 148.97M | -990.73M | -539.17M | 17.34M | 66.31M |
| Net Margin % | -0.34% | 1.79% | 1.69% | 2.14% | -18.31% | -16.13% | 0.44% | 1.93% |
| Net Income Growth % | 85.18% | 29.3% | -22.77% | 115.04% | -83.75% | -3210.3% | -73.86% | - |
| Net Income (Continuing) | -63.23M | 138.19M | 115.05M | 148.97M | -990.73M | -539.17M | 17.34M | 66.31M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 55.14M | 254.79M | 5.08M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -6.56 | 26.74 | 22.27 | 27.23 | -203.13 | -133.97 | 4.06 | 14.04 |
| EPS Growth % | 50.74% | 20.07% | -18.22% | 113.41% | -51.62% | -3399.75% | -71.08% | - |
| EPS (Basic) | - | 29.13 | 23.64 | 30.54 | -203.13 | -133.97 | 4.28 | 16.60 |
| Diluted Shares Outstanding | 7.9M | 5.85M | 5.17M | 5.47M | 4.88M | 4.02M | 4.27M | 4.72M |
| Basic Shares Outstanding | 7.9M | 5.11M | 5.17M | 5.47M | 4.88M | 4.02M | 4.27M | 4.72M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
High Operating Leverage Volatility
As indicated by the historical income statement data, MEDIROM's revenue trajectory remains highly inconsistent, with quarterly growth rates swinging from a 132% surge in 2022Q4 to a 9.3% contraction in 2025Q2, highlighting significant sensitivity to seasonal demand and potential volatility in its core salon operations.
The lack of a stable growth baseline suggests that the company's revenue model is heavily dependent on episodic demand rather than a predictable recurring subscription base. Investors should monitor whether the recent contraction reflects a structural saturation in the Kanto region or merely a temporary lull in consumer discretionary spending.
Based on reported financial figures, gross margins have fluctuated significantly, reaching a low of 10.8% in 2025Q2, which suggests that the company struggles to maintain pricing power or effectively manage the rising labor costs inherent in its physical service-based business model.
The inability to sustain gross margins above 35% indicates that the cost of delivering physical therapy services is scaling almost linearly with revenue. This margin profile appears to leave little room for the heavy corporate overhead required to support the company's digital healthcare ambitions.
According to the provided income statement, MEDIROM's operating income frequently dips into negative territory, with a -25.8% operating margin in 2025Q2, demonstrating that the company has yet to achieve the necessary scale to cover its fixed SG&A expenses through its current revenue generation.
The persistent negative operating income suggests that the company is currently subsidizing its growth through capital rather than operational efficiency. Without a clear path to positive operating leverage, the business model appears to rely on continuous external funding or significant improvements in salon utilization rates.
Financial statements reveal that SG&A expenses consistently consume a large portion of gross profit, with quarterly SG&A often exceeding $1 billion, which underscores the heavy burden of maintaining a physical salon network alongside the development of digital health technologies.
The cost structure appears heavily weighted toward fixed operational expenses, which creates significant downside risk during periods of revenue decline. Management's expense discipline warrants further investigation, as the current cost base appears to be outpacing the company's ability to generate sustainable operating income.
As reported in recent filings, the aggressive reallocation of resources toward the MOTHER Tracker and digital health initiatives may be masking the underlying deterioration of the core salon business, potentially leading to a scenario where neither segment achieves long-term profitability for shareholders.
Short-sellers might focus on the company's inability to generate consistent net income, arguing that the digital pivot is a distraction from the core business's structural challenges. Investors should remain cautious, as the transition from a service-based model to a hardware-integrated platform introduces significant execution risks that are not yet reflected in the company's bottom line.
Quick answers to the most common questions about buying MRM stock.
For fiscal year 2024, MEDIROM Healthcare Technologies Inc. (MRM) reported total revenue of $8.30B. This represents a 141.7% increase compared to $3.43B in 2018.
MEDIROM Healthcare Technologies Inc. (MRM) is profitable, generating $148.8M in net income for the fiscal year ending 2024 with a net profit margin of 1.8%.
MEDIROM Healthcare Technologies Inc. (MRM) reported an operating income of $-18.1M, resulting in an operating profit margin of -0.2%. This margin reflects the operational efficiency of the business before interest and taxes.
MEDIROM Healthcare Technologies Inc. (MRM) generated $2.25B in gross profit for the year, representing a gross profit margin of 27.1%. This demonstrates the company's core pricing power and production efficiency.