ATLED (3969) Q2 2025 earnings summary

Executive summary

• Revenue for the second quarter of FY2025 increased by 17.4% year-over-year to ¥1,377 million, with operating income up 9.6% to ¥529 million and net income up 9.1% to ¥354 million, driven by strong cloud and AgileWorks sales.

• The company maintained its No.1 SaaS/ASP workflow provider status for 13 consecutive years, with high market share in both overall and SMB segments.

• Growth was fueled by strong demand for workflow software, successful product upgrades, and new customer acquisitions.

• The business operates as a single segment focused on workflow solutions, with both package software and cloud services contributing to growth.

Financial highlights

• Cloud service revenue grew 25.7% year-over-year to ¥635 million, and AgileWorks revenue increased 18.2%.

• Operating profit margin remained robust, with operating profit at ¥529 million and ordinary profit at ¥530 million.

• Stock revenue ratio remains above 80%, supporting stable business growth.

• Operating cash flow reached ¥543 million, and free cash flow was ¥319 million for the quarter.

• Contract renewal rates for main products exceeded 99.8%.

Outlook and guidance

• Full-year revenue is projected to grow 11.9% to ¥2,800 million, with net profit forecast at ¥784 million, up 9.8%.

• Operating income is forecasted to increase 11.4% year-over-year, absorbing cost increases through higher sales.

• No changes to previously announced guidance; business is progressing as planned.

• New pricing for X-point Cloud and expanded recognition for AgileWorks Cloud are expected to drive growth.