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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.
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Q3 2025 earnings summary14 Oct, 2025

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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Frequently asked questions

ELEMENTS Inc is a Japan-based technology company that provides digital identity and authentication solutions. The company develops platforms and services focused on biometric recognition, including facial recognition and AI-based identity verification, which are used in sectors such as finance, telecommunications, and e-commerce. ELEMENTS Inc aims to enhance digital security and streamline user verification processes through its proprietary technologies. The company is headquartered in Tokyo, Japan, and its shares are listed on the TSE.

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