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Curves Holdings (TSE:7085) Stock Margins Improve To 11.8% Challenging Cautious Narratives

Simply Wall St · 2d ago

CURVES HOLDINGS (TSE:7085) has reported Q3 2026 revenue of ¥11.6b and basic EPS of ¥17.27, set against trailing twelve month EPS of ¥53.14 as earnings grew about 26.4% over the past year. The company has seen quarterly revenue progress from ¥9.34b in Q2 2025 to ¥11.6b in Q3 2026, with basic EPS moving from ¥11.34 to ¥17.27 over the same period as net profit margins improved from 10.6% to 11.8%. This quarter's release is therefore a story about steadily firmer profitability.

See our full analysis for CURVES HOLDINGS.

With the latest numbers on the table, the next step is to see how these results line up with the most widely held narratives around CURVES HOLDINGS, and where those stories might need updating.

See what the community is saying about CURVES HOLDINGS

TSE:7085 Revenue & Expenses Breakdown as at Jul 2026
TSE:7085 Revenue & Expenses Breakdown as at Jul 2026

TTM earnings growth outpaces revenue

  • Over the trailing twelve months, CURVES HOLDINGS generated ¥41,393 million in revenue and ¥4,893 million in net income, with earnings up about 26.4% year over year versus revenue growth around 8.3%.
  • Consensus narrative expects expansion into Men's Curves and the new health care brand to support earnings, and the current figures give a mixed scorecard:
    • Revenue of ¥11,603 million and net income of ¥1,590 million in Q3 2026 align with the idea that new clubs and merchandise can add to the top line and profit pool.
    • At the same time, prior commentary about slightly below target membership and subscription sales shows that hitting the assumed 9.7% annual revenue growth will likely depend on how quickly those new offerings scale from here.

Margins steady against growth plans

  • Trailing net profit margin sits at 11.8% compared with 10.6% a year ago, while analysts expect margins to move from 11.2% to 12.4% over the next three years, so current profitability is already close to that starting point.
  • For the bullish view that CURVES HOLDINGS can lift margins through club expansion and higher margin merchandise, the numbers both help and complicate the story:
    • Bulls point to new products like Ultra Protein and Healthy Beauty as higher margin drivers, which lines up with the margin at 11.8%, but that still leaves work to reach the 12.4% margin assumption.
    • Critics highlight ongoing depreciation of goodwill and trademark rights, which could weigh on net margins if operating gains at the existing 9,642 to 11,603 million yen quarterly revenue range do not keep pace.
For investors who want to see how these margin trends fit into the bigger growth story for CURVES HOLDINGS, it is worth reading how bulls frame the long term earnings path in more detail 🐂 CURVES HOLDINGS Bull Case.

Valuation gap and growth expectations

  • At a share price of ¥986, CURVES HOLDINGS is indicated as trading below a DCF fair value of ¥1,483.62 and an analyst price target of ¥1,200.00, with a P/E of 18.6x that sits under the JP Hospitality industry average of 20.8x and peer average of 23.3x.
  • For the bearish narrative that expansion risks and sales shortfalls could limit upside, the current valuation and growth forecasts create a clear tension:
    • Bears focus on foreign exchange swings and below target membership and product subscriptions that could affect earnings, which matters when earnings growth is projected at 9.9% per year, slightly below the broader JP market at 10.1%.
    • Yet the indicated discount to both the ¥1,483.62 DCF fair value and the ¥1,200.00 target, combined with a lower than peer P/E, suggests the market is already pricing in some of that execution risk rather than assuming the full forecast plays out.
If you want to see how cautious investors interpret that gap between current price, DCF fair value, and targets, it is helpful to read how skeptics frame the risks around CURVES HOLDINGS 🐻 CURVES HOLDINGS Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for CURVES HOLDINGS on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the mix of optimism and caution around CURVES HOLDINGS leaves you undecided, consider quickly reviewing the underlying figures yourself and stress testing your assumptions. Then evaluate how those positives compare in the context of its 4 key rewards

See What Else Is Out There Beyond CURVES HOLDINGS

While CURVES HOLDINGS shows firmer profitability, the reliance on membership growth, product uptake and margin improvement leaves execution and forecast delivery as key weak spots.

If you are concerned that these moving parts could limit returns, it makes sense to compare CURVES HOLDINGS with companies already screened for stronger value and quality by reviewing the 19 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.