Broadleaf (3673) investor relations material

Executive summary

• Revenue for FY2025 increased 15.4% year-over-year to ¥20,815 million, driven by strong cloud service growth, new customer acquisitions, and a transition to a subscription-based model.

• Operating profit surged 206% to ¥2,063 million, with profit attributable to owners of the parent up 261.3% to ¥1,240 million.

• Cloud service sales rose 44.1% year-over-year, while packaged system sales declined due to migration to cloud offerings.

• Strategic focus on cloud-based software, migration of legacy users, and organizational restructuring to accelerate growth.

• The company operates as a single IT services segment, with revenue breakdowns for cloud, packaged, and other services.

Financial highlights

• FY2025 revenue rose 15.4% year-over-year to ¥20,815 million; gross profit increased to ¥13,520 million.

• Operating profit margin improved to 9.9% in FY2025, with net margin of equity at 5.2% and return on assets at 4.6%.

• Basic earnings per share rose to ¥13.79 from ¥3.85 year-over-year.

• Cash and cash equivalents at year-end totaled ¥4,121 million.

• Net cash provided by operating activities was ¥6,897 million, up 5.6% year-over-year.

Outlook and guidance

• FY2026 revenue forecast at ¥23,500 million (+12.9% YoY), with operating profit expected to rise to ¥4,800 million and margin to 20.4%.

• Profit attributable to owners of the parent projected at ¥3,200 million (+158% YoY); EPS forecast at ¥35.35.

• Double-digit revenue growth expected through FY2028, driven by cloud software and expanding customer base.

• Dividend payout ratio target raised to 40% or higher, with FY2026 annual dividend forecast at ¥15.00 per share.