ATLED (3969) Q4 2025 earnings summary

Executive summary

• Revenue for the fiscal year ended March 2025 increased by 10.6% year-over-year to ¥2,766 million, with operating income at ¥1,058 million (+0.8%) and net income at ¥728 million (+2.0%), driven by strong cloud service growth and steady upselling and new customer acquisition.

• Ordinary profit reached ¥1,060 million (+0.7%), and this marks the eighth consecutive year of profit growth since listing.

• Growth was achieved despite a challenging macroeconomic environment, supported by demand for workflow software.

Financial highlights

• Cloud service revenue surged 26.7% year-over-year, with the cloud ratio in total sales reaching 49%.

• Stock revenue accounted for 83% of total sales, reflecting a stable recurring revenue model with high contract retention rates (AgileWorks: 99.81%, X-point Cloud: 99.83%).

• Gross profit increased to ¥1,841 million from ¥1,781 million year-over-year.

• Operating cash flow reached ¥1,149 million, while free cash flow was ¥694 million.

• Cash and equivalents at year-end rose to ¥4,991 million, up ¥477 million from the previous year.

Outlook and guidance

• For the fiscal year ending March 2026, revenue is projected to reach ¥3,120 million (+12.8%), with cloud sales as the main growth driver and a target cloud sales ratio of 56%.

• Operating income is forecast to increase to ¥1,170 million (+10.6%), absorbing cost increases through higher cloud revenue.

• Strategic focus includes accelerating cloud migration, expanding AgileWorks Cloud, and strengthening customer success to maintain low churn rates.