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MEDIROM Healthcare Technologies Inc. Announces 22% Rise in Revenue and 20% Improvement in Earnings for 2024; Webcast to Discuss Financial Results to be held on May 21st, 2025 at 8:30 AM ET

TOKYO, May 20, 2025 (GLOBE NEWSWIRE) -- MEDIROM Healthcare Technologies Inc. (Nasdaq CM: MRM), a holistic healthcare company based in Japan (the 鈥淐ompany鈥� or 鈥淢EDIROM鈥�), today announced that for the year ended December 31, 2024, the Company had total revenue of $52,736,000, a 22% increase over total revenue of $43,388,000 for the year ended December 31, 2023. (The Company reports its financial results in Japanese yen and figures presented in this press release in US dollars have been translated for convenience at the exchange rate of 楼 157.37 = US$1.00. See 鈥淐onvenience Translations to US Dollars鈥� below for more information.)

Net income for 2024 was $878,000, or $0.17 per basic share, a 20% improvement compared with net income of $731,000, or $0.15 per basic share, for 2023.

MEDIROM鈥檚 improvement in revenue in 2024 was primarily driven by a 23% increase in the Company鈥檚 Relaxation Salon Segment revenue to $47,317,000, compared with $38,507,000 in 2023.

The Company鈥檚 increase in net income in 2024 was primarily the result of the rise in total revenue, a decrease in cost of revenues as a percentage of total revenues to 72.9% in 2024 compared with 77.0% during 2023, and a decrease in selling, general and administrative expenses as a percentage of total revenues to 27.0% in 2024 compared with 28.7% in 2023.

As of December 31, 2024, MEDIROM had cash and cash equivalents of $2,093,000, compared with $676,000 as of December 31, 2023. The Company鈥檚 total indebtedness was $11,925,000 and $9,857,000 as of December 31, 2024 and 2023, respectively.

Net cash used in operating activities was $8,462,000 in 2024 compared with $4,014,000 in 2023. Net cash provided in investing activities was $2,296,000 in 2024 while the Company had net cash used in investing activities of $2,088,000 in 2023. Net cash provided by financing activities was $7,583,000 in 2024 compared with $2,931,000 in 2023.

Basic weighted average common shares outstanding were 5,107,404 in 2024 and 4,882,500 in 2023.

鈥淭hus far in 2025, MEDIROM has announced several notable developments,鈥� said Chief Executive Officer Koji Eguchi. 鈥淚n January, the Company鈥檚 subsidiary, MEDIROM MOTHER Labs Inc., began providing its remote health monitoring system, REMONY, and charging-free smart tracker device, MOTHER Bracelet^庐锔�, to the Electronics Division of TOPPAN Inc. Also in January, all corporate capital registration procedures under Japanese law were completed with respect to the Company鈥檚 offering of 2,860,000 common shares represented by American Depositary Shares, generating gross proceeds of approximately $5 million.鈥�

鈥淚n March, Yasuhiro Hayami, Chief Business Officer of MEDIROM Mother Labs Inc., made a second investment in Mother Labs鈥� Series A financing at a pre-money valuation of approximately $60 million. This new investment followed Mr. Hayami鈥檚 initial investment in a Series A financing in December 2024.听Also in March, MEDIROM obtained a new unsecured short-term bank loan in the amount of approximately $2.4 million, which is being used for repayment of indebtedness to MEDIROM Mother Labs and for general working capital, including MOTHER Bracelet development.鈥�

Looking forward to the rest of 2025, Mr. Eguchi said that MEDIROM 鈥渨ill continue to strive to improve revenue growth and bottom-line performance for the year.鈥� Mr. Eguchi added, 鈥淎s for near-term goals, we aim to not only to capture a significant share of the existing Japanese market for relaxation salons but also to expand our Digital Preventative Healthcare business lines through a variety of strategic initiatives and to increase the margin in that segment. As part of this, we intend to increase the number of Lav^庐 users via the Specific Health Guidance Program promoted by the Ministry of Health, Labor and Welfare of Japan and expand the billing user base for the upgraded Lav^庐 application. We also intend to accelerate the production of our MOTHER Bracelet^庐 for large orders from corporate clients.鈥�

On April 29, 2025, the Company filed its most recent annual report on Form 20-F, which annual report covers the Company鈥檚 financial results for the 2024 fiscal year and is available on the Securities and Exchange Commission website at www.sec.gov.

Convenience Translations to US Dollars

The Company鈥檚 financial results presented in this press release in US dollars have been translated for convenience from Japanese yen at the exchange rate of 楼 157.37 = US$1.00, which was the foreign exchange rate on December 31, 2024, as reported by the Board of Governors of the Federal Reserve System in its weekly release on January 6, 2025. These financial results, as reported by the Company in Japanese yen, are included in the tabular data at the end of this press release.

Webcast

MEDIROM will hold a webcast to discuss the Company鈥檚 financial results for the fiscal year ended December 31, 2024, on听Wednesday, May 21 at 8:30 am Eastern time.

To access the webcast, please go to the following URL five to ten minutes prior to its start:

听

To participate in the webcast, please use the following dial-in numbers:

Conference Replay:

A replay of this call will be available on May 21, 2025 at 11:30 a.m. ET until June 4, 2025, at听11:59 PM ET.

To access the replay, please dial:

To access the replay using an international dial-in number, please select the following link:

About MEDIROM Healthcare Technologies Inc.

MEDIROM, a holistic healthcare company, operates 307 (as of March 31, 2025) relaxation salons across Japan, Re.Ra.Ku^庐 being its leading brand, and provides healthcare services. In 2015, MEDIROM entered the health tech business and launched new healthcare programs using an on-demand training app called 鈥淟av^庐鈥�, which is developed by the Company. MEDIROM also entered the device business in 2020 and has developed a smart tracker 鈥淢OTHER Bracelet^庐鈥�. In 2023, MEDIROM launched REMONY, a remote monitoring system for corporate clients, and has received orders from a broad range of industries, including nursing care, transportation, construction, and manufacturing, among others. MEDIROM hopes that its diverse health-related product and service offerings will help it collect and manage healthcare data from users and customers and enable it to become a leader in big data in the healthcare industry. For more information, visit听.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about the Company鈥檚 possible or assumed operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as 鈥渕ay,鈥� 鈥渨ill,鈥� 鈥渟hould,鈥� 鈥渄esign,鈥� 鈥渢arget,鈥� 鈥渁im,鈥� 鈥渉ope,鈥� 鈥渆xpect,鈥� 鈥渃ould,鈥� 鈥渋ntend,鈥� 鈥減lan,鈥� 鈥渁nticipate,鈥� 鈥渆stimate,鈥� 鈥渂elieve,鈥� 鈥渃ontinue,鈥� 鈥減redict,鈥� 鈥減roject,鈥� 鈥減otential,鈥� 鈥済oal,鈥� or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to the Company鈥檚 future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause the Company鈥檚 actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company鈥檚 control and which could, and likely will, affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company鈥檚 current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to the Company鈥檚 operations, results of operations, growth strategy and liquidity. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this press release include:

• the Company鈥檚 ability to achieve its development goals for its business and execute and evolve its growth strategies, priorities and initiatives;
• the Company鈥檚 ability to sell certain of its owned salons to investors, and receive management fees from such sold salons, on acceptable terms;
• changes in Japanese and global economic conditions and financial markets, including their effects on the Company鈥檚 expansion in Japan and certain overseas markets;
• the Company鈥檚 ability to achieve and sustain profitability in its Digital Preventative Healthcare Segment;
• the fluctuation of foreign exchange rates, which affects the Company鈥檚 expenses and liabilities payable in foreign currencies;
• the Company鈥檚 ability to hire and train a sufficient number of therapists and place them at salons in need of additional staffing;
• changes in demographic, unemployment, economic, regulatory or weather conditions affecting the Tokyo region of Japan, where the Company鈥檚 relaxation salon base is geographically concentrated;
• the Company鈥檚 ability to maintain and enhance the value of its brands and to enforce and maintain its trademarks and protect its other intellectual property;
• the financial performance of the Company鈥檚 franchisees and the Company鈥檚 limited control with respect to their operations;
• the Company鈥檚 ability to raise additional capital on acceptable terms or at all;
• the Company鈥檚 level of indebtedness and potential restrictions on the Company under the Company鈥檚 debt instruments;
• changes in consumer preferences and the Company鈥檚 competitive environment;
• the Company鈥檚 ability to respond to natural disasters, such as earthquakes and tsunamis, and to global pandemics, such as COVID-19; and
• the regulatory environment in which the Company operates.

More information on these risks and other potential factors that could affect the Company鈥檚 business, reputation, results of operations, financial condition, and stock price is included in the Company鈥檚 filings with the SEC, including in the 鈥淩isk Factors鈥� and 鈥淥perating and Financial Review and Prospects鈥� sections of the Company鈥檚 most recently filed periodic report on Form 20-F and subsequent filings, which are available on the SEC website at听. The Company assumes no obligation to update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Contact:
Investor Relations Team

The financial information below should be read in conjunction with the Company鈥檚 audited consolidated financial statements and notes thereto included in the Company鈥檚 Annual Report on Form 20-F for the year ended December 31, 2024 (the 鈥淎udited Financial Statements鈥�), which is available on the Securities and Exchange Commission website at www.sec.gov.