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ELEMENTS (5246) investor relations material
ELEMENTS Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Quarterly revenue reached a record ¥1,030 million, up 59% year-over-year, driven by the consolidation of Polarify and growth in LIQUID eKYC sales.
Revenue for the nine months ended August 31, 2025, rose 46.5% year-over-year to ¥2,721 million, driven by expansion in AI cloud and personal authentication solutions.
EBITDA was negative ¥20 million, and operating loss was ¥153 million, mainly due to M&A-related costs; adjusted EBITDA was positive ¥5 million, and adjusted operating loss was ¥100 million.
The group was selected for the Ministry of Internal Affairs and Communications' Digital Infrastructure Development Fund project.
Despite strong top-line growth, the period recorded an operating loss of ¥136 million and a net loss attributable to shareholders of ¥623 million, reflecting increased costs and investments.
Financial highlights
Cumulative revenue for the nine months was ¥2,721 million, up 47% year-over-year; cumulative EBITDA was ¥219 million, and cumulative operating loss was ¥136 million.
Gross profit for the quarter was ¥754 million, up 39% year-over-year, but gross margin declined to 73.2% from 83.5% due to the Polarify consolidation.
SG&A expenses rose 57% year-over-year to ¥907 million, mainly from Polarify consolidation and M&A costs.
Net loss attributable to parent company shareholders was ¥171 million for the quarter, and ¥623 million for the nine months.
Comprehensive loss for the period was ¥731 million.
Outlook and guidance
Progress toward full-year guidance is on track, with Q4 typically stronger than Q3; cumulative revenue progress is 68–71% of the revised full-year forecast.
Full-year revenue forecast remains unchanged at ¥3,815–4,000 million, up 49.9–57.1% year-over-year.
Full-year net loss forecasted at ¥275–375 million, with EPS expected between -¥33.59 and -¥29.52.
Management targets FY2027 revenue of ¥6–6.5 billion, operating margin of 15%, and EBITDA margin of 25%.
No revision to previously announced guidance.
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