Research

TENTIAL: Founder-led recovery-wear brand, now buying back its own shares

TENTIAL Inc. (325A) · Initiated coverage 2026-10-20 · Beluuga AI Research Team · Independent research

Not investment advice or a solicitation. See Important disclosures below.

Business overview

  • TENTIAL develops and sells "conditioning" products under the TENTIAL brand, led by the BAKUNE recovery-wear sleepwear line. The line uses a ceramic-infused fiber and is notified as a general (Class I) medical device, which allows the company to make stated claims such as fatigue reduction and improved blood circulation. Other lines include MIGARU daywear, insoles, recovery sandals and BAKUNE comforters.
  • The company reports a single segment and breaks sales into four main channels: its own e-commerce site, third-party e-commerce malls (Amazon, Rakuten, Yahoo! Shopping), directly operated TENTIAL stores, and wholesale to apparel, general-goods and electronics retailers. Online channels account for the majority of sales.
  • It is a fabless company: manufacturing and logistics are outsourced, while product planning, development, marketing and customer service are done in-house. In August 2024 it obtained a second-class medical device marketing license, which lets it file Class I notifications and obtain Class II certifications itself instead of relying on an outside marketing-authorization holder.
  • The company listed on the TSE Growth market on February 28, 2025, and changed its fiscal year-end from January 31 to August 31. The period to August 2025 covered only seven months, so it is not comparable with the twelve-month years before and after it (see Performance & Balance).

Investment case

  1. The annual securities report states that the company recorded operating and ordinary profits in the years to January 2024 and January 2025 and in the seven-month period to August 2025, and the earnings release for the year to August 2026 shows a further full year of operating profit (see Performance & Balance).
  2. The earnings release for the year to August 2026 gives a forecast range for the year to August 2027 that projects higher sales and profits, and states that the company aims for "non-continuous growth" through a wider product line, more directly operated stores, mass promotion, investment in new businesses and the start of overseas expansion.
  3. In the year to August 2026 the company acquired its own shares for the first time since listing, and its articles allow the board to repurchase shares by board resolution under the Companies Act. Borrowings were reduced over the period and remain small relative to equity (see Performance & Balance).
  4. The annual securities report states that repeat purchases by existing customers make up a stable share of own-site e-commerce sales, supported by the TENTIAL Club points program launched in May 2024, and that the company holds clinical and test evidence for its products, which it uses to differentiate from similar goods.

Bear case

  1. The BAKUNE series accounts for the large majority of sales according to the annual securities report, and the company states that advertising is deliberately concentrated on it. The report also notes new entrants and lower-priced products in the recovery-wear market.
  2. One contract manufacturer, Toyoshima Co., Ltd., makes all products using the SELFLAME fiber and accounts for the large majority of purchases under a one-year, automatically renewing contract. Toyoshima is also listed among the major shareholders (see Shareholders).
  3. In the year to August 2026 inventory rose sharply, and operating cash flow was small relative to net income; together with the share buyback, deposits for new stores and capital spending, this reduced the cash balance substantially (see Performance & Balance).
  4. The year to August 2026 included extraordinary losses from a contract cancellation and a write-down of investment securities, and the company paid no dividend and forecasts none for the year to August 2027.

Catalysts

  • The annual securities report for the year to August 2026 is scheduled for November 26, 2026, and the annual general meeting for November 27, 2026.
  • Progress against the forecast range for the year to August 2027, including store openings, mass promotion and the stated start of overseas expansion, will appear in the quarterly releases during that fiscal year.
  • Stock options granted to officers and employees become exercisable in thirds each year after the February 2025 listing, with all exercisable two years after listing, which may add to the share count.

Key risks

  • Regulatory risk: product advertising is subject to the Act against Unjustifiable Premiums and Misleading Representations and the Pharmaceuticals and Medical Devices Act; a violation or the suspension or revocation of a medical device marketing license could, by the company's own assessment, seriously affect the business.
  • Dependence on advertising: the company states that advertising has contributed significantly to growth and that a deterioration in its cost-effectiveness would reduce customer acquisition. Sales are also seasonal, with demand concentrated in winter and gift periods.
  • Most products are imported from overseas factories, so exchange-rate moves affect procurement costs; the company asks Toyoshima to execute forward currency contracts. Its commitment line carries financial covenants, and a breach could accelerate repayment.
  • The president is the founder and chief executive, chairs both the board and the risk and compliance committee, and is listed as the largest shareholder (see Shareholders); the company itself identifies dependence on him as a risk. The six-member board includes four outside directors, and the audit and supervisory committee consists entirely of outside directors.

Trading liquidity

Median daily trading value US$2.61mn
Average daily volume 435,896 shares

2025-10-07 to 2026-10-19 (250 trading days). Trading value is daily closing price × daily volume on the Tokyo Stock Exchange.

Assumptions

  • Financial figures on this page come from beluuga.ai's daily data set; trading liquidity is measured over the period shown. We do not use consensus estimates.
  • Because the fiscal year changed in 2025, the seven-month period to August 2025 cannot be compared directly with the twelve-month years to January 2025 and August 2026, and the company gives no year-on-year growth rates for those periods. Per-share figures are restated for the three-for-one stock split effective July 1, 2026.
  • The business-risk and governance descriptions are as of November 2025, before the share buyback, the stock split and the investment in and loan to an affiliated company that appear in the year to August 2026.
  • Qualitative statements are taken from the annual securities report for the seven-month fiscal period to August 2025 and the full-year earnings release for the year to August 2026.

This is independent research. No company paid for or reviewed it. We do not publish ratings, price targets or buy/sell views. Figures on the other slides of this page come from beluuga.ai's daily data set.

Important disclosures

No offer or solicitation. This material is provided for information purposes only. It is not an offer to sell, or a solicitation of an offer to buy, any security or other financial instrument in the United States or in any other jurisdiction, and it is not a recommendation to buy, sell or hold any security. It is not directed at, and may not be relied on by, any person in any jurisdiction where its publication or availability would be contrary to law or regulation.

Not investment advice. This material is general and impersonal. It does not take into account the investment objectives, financial situation or particular needs of any reader, and it is not tailored to any person. It is published to all readers on the same terms and on a regular basis, and no reader receives advice on the merits of any security for their own account. Readers should make their own independent decisions and consult their own legal, tax, accounting and investment advisers before making any investment.

Regulatory status. Beluuga AI, Inc. is not registered with the U.S. Securities and Exchange Commission (SEC) or any state securities authority as an investment adviser under the Investment Advisers Act of 1940, is not registered as a broker-dealer under the Securities Exchange Act of 1934, and is not a member of the Financial Industry Regulatory Authority (FINRA). It is not registered as a Financial Instruments Business Operator under Japan's Financial Instruments and Exchange Act. This material is not a research report prepared by a FINRA member firm and is not subject to FINRA Rule 2241, Regulation Analyst Certification (Regulation AC) or the other U.S. rules that govern broker-dealer research. The SEC, FINRA and the Financial Services Agency of Japan have not reviewed, approved or passed on the merits or accuracy of this material.

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Sources, accuracy and forward-looking statements. This material is based on the issuers' public disclosure documents and on market data, and it was prepared with the assistance of AI tools and reviewed by the Beluuga AI Research Team. We believe the sources to be reliable but do not guarantee that the information is accurate, complete or current, and the material may contain errors. Statements about the future, including catalysts and risks, are assumptions and are not guarantees; actual results may differ materially. Past performance is not a guide to future performance. The material speaks only as of its date, and we have no obligation to update it. Where the issuer's original disclosure is in Japanese, the Japanese original prevails over any English description given here.

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Overview
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TENTIAL Inc.

TENTIAL Inc. develops and sells conditioning products designed to improve daily physical health and recovery, with its flagship product being the 'BAKUNE RECOVERY WEAR' series—a nightwear line using proprietary far-infrared ceramic fiber technology (SELFLAME®) clinically evidenced to promote blood circulation and reduce fatigue, registered as a general medical device under Japan's Pharmaceuticals and Medical Devices Act. The company also offers insoles, recovery sandals, comfort wear (MIGARU series), and functional bedding, distributed via its own e-commerce site (tential.jp), major EC marketplaces (Amazon, Rakuten, Yahoo! Shopping), and physical retail stores. Operating a fully fabless, vertically integrated model—with in-house product planning, marketing, and customer service—TENTIAL leverages direct consumer feedback to continuously refine its science-backed product lineup targeting the growing health and wellness market.

Market Cap
¥25.3B
US$161M
EV
¥23.9B
US$152M
Stock¥1,128▼-8.29%
US$1 = ¥157.05 (2026-10-22)
LTM EV/EBITDA
5.8
x
LTM EV/EBIT
6.3
x
LTM PER
10.6
x
LTM PBR
4.3
x
Stock vs TOPIX (1Y, base=100)vs TOPIX ▼-45.5%pt
100123
Oct 22, 25 – Oct 22, 26StockTOPIX
1Jul 16, 26Q3 FY2026/08 earnings announced
2Oct 16, 26FY2026 sales +71% but FY2027 guidance slows to sales +23-36%/profit +16-50%
3Oct 19, 26TENTIAL FY2027/8 profit guidance of ¥2.7-3.5bn misses market expectations
MC → EV Bridge
25.3BUS$161MMarket Cap0.30BUS$1.88M+ Debt1.76BUS$11.2M− Cash0.00BUS$0.00M− Inv. Sec.23.9BUS$152MEV
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Performance & Balance
Revenue 5Y (¥B)
2.03US$13.0M'23/15.41US$34.4M'24/112.8US$81.7M'25/111.1US$70.9M'25/833.2US$212M'26/8
EBITDA 5Y (¥B)
1.53US$9.76M'25/11.28US$8.16M'25/84.13US$26.3M'26/8
Net Income 5Y (¥B)
-0.01-US$0.08M'23/10.51US$3.23M'24/11.06US$6.76M'25/10.82US$5.20M'25/82.40US$15.3M'26/8
Capital Structure
95%
EquityD/E 0.05xDebt
Liquidity vs Debt 5Y (¥B)▲ Net Cash
CashInv. Sec.Debt
'23/1'24/14.17US$26.5M1.25US$7.95M'25/14.34US$27.6M0.41US$2.60M'25/81.76US$11.2M0.30US$1.88M'26/8
Shareholders
Top 10 hold 59.5%
1
Yutaro NAKANISHI
26.74%
2
Anchor Inc.
7.79%
3
Custody Bank of Japan, Ltd. (Trust Account)
4.78%
4
Nomura Trust and Banking Co., Ltd. (Investment Trust Account)
4.04%
5
Bell Investment Limited Partnership 1
3.67%
6
Toyoshima Co., Ltd.
3.31%
7
Morgan Stanley MUFG Securities Co., Ltd.
3.01%
8
PARAMOUNT BED-SBI Healthcare Fund No. 1 Investment Limited Partnership
2.09%
9
Akatsuki Inc.
2.06%
10
BNY GCM CLIENT ACCOUNT JPRD AC ISG (FE-AC; Standing Proxy: MUFG Bank, Ltd.)
1.97%
Management
6 officers
Yutaro NAKANISHI
Representative Director, President
Jan 2014 Joined Infratop Inc. Nov 2016 Joined Recruit Career Co., Ltd. Feb 2018 Founded the Company; assumed office as Representative Director, President (current)
1994-06-16
Ayumu SARUWATARI
Director
Feb 2010 Joined Tohmatsu LLC (audit firm) Oct 2013 Joined Japan Industrial Partners, Inc. Jun 2014 Joined Anchor Japan Inc. Aug 2020 Assumed office as Director and COO of Anchor Japan Inc. Jul 2021 Assumed office as Director of the Company (current) Oct 2021 Assumed office as Representative Director and CEO of Anchor Japan Inc. (current)
1987-03-03
Masatoshi MINAMIHI
Director, Executive Officer, Head of Business Division
Apr 2011 Joined Panasonic Corporation Jul 2012 Joined Deloitte Tohmatsu Consulting Co., Ltd. Jul 2015 Joined M3, Inc. Apr 2016 Joined Deloitte Tohmatsu Consulting LLC Apr 2017 Joined I-Pet Insurance Co., Ltd. Jul 2018 Joined Globis Corporation Jul 2021 Joined Knowledge Work Inc. Aug 2023 Assumed office as Executive Officer, VP (Product Marketing) of Knowledge Work Inc. Apr 2024 Joined the Company May 2024 Assumed office as Executive Officer of the Company Nov 2024 Assumed office as Director and Executive Officer, Head of Business Division of the Company (current)
1989-02-28
Kazuya ISHIDA
Director (Audit and Supervisory Committee Member)
Apr 1981 Joined Shin Nihon Securities Co., Ltd. (now Mizuho Securities Co., Ltd.) Apr 2011 Joined Mizuho Securities Co., Ltd. as Executive Officer Dec 2012 Joined Shinko Investment Trust Co., Ltd. (now Asset Management One Co., Ltd.) Apr 2014 Assumed office as Managing Executive Officer of Shinko Investment Trust Co., Ltd. Apr 2015 Assumed office as Director and Managing Executive Officer of Shinko Investment Trust Co., Ltd. Oct 2016 Assumed office as Audit & Supervisory Board Member of Mizuho Securities Property Management Co., Ltd. Jan 2019 Assumed office as Audit & Supervisory Board Member of N.L.N. Co., Ltd. Apr 2023 Assumed office as Director (Audit and Supervisory Committee Member) of the Company (current)
1958-12-09
Takeaki FURIHATA
Director (Audit and Supervisory Committee Member)
Apr 1978 Joined Shin Nihon Securities Co., Ltd. (now Mizuho Securities Co., Ltd.) Apr 2009 Assumed office as Executive Officer and Head of Equity Underwriting Department of Mizuho Securities Co., Ltd. May 2009 Assumed office as Executive Officer and Deputy Group Head, Capital Markets Group, Global Investment Banking Division of Mizuho Securities Co., Ltd. Apr 2010 Assumed office as Executive Officer and Head of Corporate Promotion Group of Mizuho Securities Co., Ltd. Jun 2011 Assumed office as Audit & Supervisory Board Member of Nihon Securities Technology Co., Ltd. Apr 2014 Joined OKINAWA J-Adviser Co., Ltd. Apr 2017 Assumed office as Audit & Supervisory Board Member of Repertoire Genesis Co., Ltd. Apr 2019 Assumed office as Audit & Supervisory Board Member of FB Kaigo Service Co., Ltd. Aug 2020 Assumed office as Director (Audit and Supervisory Committee Member) of FB Kaigo Service Co., Ltd. Oct 2022 Assumed office as Audit & Supervisory Board Member of Sharing Energy Co., Ltd. (current) Nov 2022 Assumed office as Audit & Supervisory Board Member of the Company Apr 2023 Assumed office as Director (Audit and Supervisory Committee Member) of the Company (current)
1955-02-10
Atsuko SAKAI
Director (Audit and Supervisory Committee Member)
Oct 1998 Joined Ota Showa Audit Corporation (now EY ShinNihon LLC) Apr 2002 Registered as Certified Public Accountant Dec 2006 Registered as Certified Tax Accountant Dec 2006 Joined Sakai Motonori Tax Accountant Office Aug 2011 Joined Nakano Akira Accounting Office Oct 2020 Opened Atsuko Sakai Certified Public Accountant Office Apr 2023 Assumed office as Outside Audit & Supervisory Board Member of Nadia Co., Ltd. Feb 2024 Opened Atsuko Sakai Tax Accountant Office (current) Nov 2025 Assumed office as Director (Audit and Supervisory Committee Member) of the Company (current)
1974-12-17
Large Shareholding Reports
ベルインベストメンツ株式会社
2026-10-22
7.08%→5.85%
Nomura Asset Management Co., Ltd.
2026-07-07
3.72%→3.33%
Nomura Asset Management Co., Ltd.
2026-02-06
3.73%→3.72%
Nomura Asset Management Co., Ltd.
2026-01-08
3.73%
Nomura Asset Management Co., Ltd.
2025-12-22
3.63%→3.62%
Bell Investments Co., Ltd.
2025-11-10
5.36%→7.08%
Nomura Asset Management Co., Ltd.
2025-11-07
3.63%
Yutaro NAKANISHI
2025-10-21
28.42%→26.30%
Annual report (as of 2026-02-28): 26.74%
Yutaro NAKANISHI
2025-10-08
26.30%
Annual report (as of 2026-02-28): 26.74%
Bell Investments Co., Ltd.
2025-10-07
5.36%
Nomura Asset Management Co., Ltd.
2025-09-19
2.97%→2.97%
Nomura Asset Management Co., Ltd.
2025-09-04
2.97%
Disclosures
No disclosures
Primary Source Filings
EDINET
2026-10-22
Large Shareholding Report
TDnet
2026-10-15
Full-Year Earnings Flash
FY ending Aug 2026
TDnet
2026-07-15
Q3 Earnings Flash
FY ending Aug 2026
EDINET
2026-07-07
Large Shareholding Report
EDINET
2026-04-14
Semi-Annual Securities Report
Period: Sep 2025 – Aug 2026
EDINET
2026-02-06
Large Shareholding Report
TDnet
2026-01-13
Q1 Earnings Flash
FY ending Aug 2026
EDINET
2026-01-08
Large Shareholding Report
EDINET
2025-12-22
Large Shareholding Report
EDINET
2025-11-26
Annual Securities Report
Period: Feb 2025 – Aug 2025
EDINET
2025-11-10
Large Shareholding Report
EDINET
2025-11-07
Large Shareholding Report
EDINETAmended
2025-10-21
Change Report
EDINET
2025-10-08
Large Shareholding Report
EDINET
2025-10-07
Large Shareholding Report
EDINET
2025-09-19
Large Shareholding Report
EDINET
2025-09-04
Large Shareholding Report
TDnet
2025-06-13
Q1 Earnings Flash
FY ending Aug 2025
EDINET
2025-04-30
Annual Securities Report
Period: Feb 2024 – Jan 2025
EDINETAmended
2025-02-18
Amended Securities Registration Statement
EDINETAmended
2025-02-07
Amended Securities Registration Statement
EDINET
2025-01-23
Securities Registration Statement
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