BASE (4477) Q2 2025 earnings summary

Executive summary

• Net sales rose 24.8% year-over-year to ¥9,144 million for the six months ended June 30, 2025, with operating profit up 12.2% to ¥570 million and ordinary profit up 12.5% to ¥579 million.

• Net Sales and Gross Profit increased over 22% and 25% YoY, driven by Group GMV and YELL BANK business growth.

• All core business segments reported sales growth, with BASE, PAY.JP, and YELL BANK segments showing strong profit increases.

• E-Store was acquired as a wholly-owned subsidiary in July 2025, expanding the merchant base.

• A paid model for the "Pay ID" shopping app was introduced in July 2025 to improve profitability.

Financial highlights

• Q2 FY2025 Net Sales: ¥4,572 million (+22.5% YoY); Gross Profit: ¥2,104 million (+25.9% YoY); Gross Profit Margin: 46.0%.

• EBITDA for the period was ¥575 million, up 12.8% year-over-year.

• Operating Profit: ¥180 million (-40.2% YoY); Net Income Attributable to Owners: ¥124 million (-47.7% YoY).

• Cash and cash equivalents: ¥19.2 billion as of June 30, 2025.

• FY2025 full-year forecast: Net Sales ¥19,600 million (+22.6% YoY), Gross Profit ¥9,085 million (+26.8% YoY), Net Income ¥1,248 million (+266.8% YoY).

Outlook and guidance

• FY2025 guidance targets continued top-line growth and profitability, with strategic investments of ~¥300 million factored into SG&A.

• Gross Profit and EBITDA are targeted to grow +26% and +28% YoY, respectively.

• The impact of consolidating Estore Corporation is not yet included in the FY2025 forecast.

• Focus remains on new merchant acquisition, product enhancements, and cost structure optimization.