Hennge (4475) investor relations material

Executive summary

• Net sales for Q3 FY2025 reached JPY 8,016M, up 32.3% year-over-year, with HENNGE One as the main growth driver and operating income up 72.3% to JPY 1,580M.

• Profit attributable to owners increased 46.2% year-over-year to JPY 1,058M, with comprehensive income up 86.3%.

• Recurring revenue and higher ARPU continue to drive steady net sales growth.

• Growth strategy focuses on maximizing LTV by increasing ARR, expanding into new markets, and pursuing M&A.

• HENNGE One now accounts for 93.7% of net sales.

Financial highlights

• Gross profit for the nine months ended June 30, 2025, was JPY 6,909M, up 35.7% year-over-year, with margin rising to 86.2%.

• ARR for HENNGE One reached JPY 10.73B (+31.5% YoY), with ARPU at JPY 3,969 (+JPY 461 YoY).

• Net sales and operating expenses rose, mainly due to higher personnel and recruitment costs.

• Basic earnings per share increased to JPY 32.95 from JPY 22.43 year-over-year.

• Total assets grew to JPY 10,304M as of June 30, 2025.

Outlook and guidance

• Full-year net sales forecast for FY2025 is JPY 10,881M, up 30.1% year-over-year.

• Operating income forecasted at JPY 1,750–1,950M, with margin expected at 16.1–17.9%.

• Profit attributable to owners forecast at JPY 1,251–1,391M, with basic EPS guidance of JPY 38.94–43.29.

• Annual advertising expenses and consolidated result forecast remain aligned with the revised plan.

• Continued proactive investment in ARR growth over short-term operating profit.