Right On narrows net loss, eyes profitability and auditor change

Right On reported a net loss of 449 million yen for the fiscal year ending August 2025, a significant improvement from the 12,142 million yen loss in the previous year. Sales for the period were 28,130 million yen, a 27.5% decrease year-over-year. The company also improved its operating loss to 454 million yen from 5,000 million yen previously, attributing it to structural reforms including store closures, cost reductions, and a revised product strategy.

Looking ahead, Right On forecasts sales of 20,800 million yen and a net profit of 30 million yen for the fiscal year ending August 2026, targeting a return to profitability. The company has also announced a change in its independent auditor from Azusa LLC to PwC Japan LLC, effective November 27, 2025, to enhance corporate governance.

Despite the reduced losses and planned auditor change, Right On acknowledges ongoing concerns about its ability to continue as a going concern, citing consecutive losses and a negative operating cash flow of 4,225 million yen for the fiscal year. The company continues to implement its medium-term management plan focused on cost restructuring and improving profitability.