Bengo4.com (6027) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY3/2025 increased 35.3% year-over-year, reaching 6,691 million yen, with EBITDA at 919 million yen and operating profit at 545 million yen, slightly down 0.9% YoY.

• Profit attributable to owners of parent was 339 million yen for the six months ended September 30, 2024.

• The company completed the acquisition and absorption-type merger of Bengo Kakumei Inc., integrating its digital case record-keeping tool for lawyers.

• Company-wide ARR reached 11.2 billion yen, up 38.3% YoY, with CloudSign ARR increasing by 330 million yen quarter-over-quarter.

Financial highlights

• Q2 net sales rose 32.9% YoY to 3,394 million yen, with gross profit up 23.9% YoY and SGA expenses up 30.2% YoY.

• Q2 EBITDA was 435 million yen (+3.6% YoY), operating profit 263 million yen (-13.4% YoY), and net profit 155 million yen (-16.4% YoY).

• Gross profit margin declined as COGS rose 72.9% YoY, outpacing sales growth.

• Net assets increased to 4,725 million yen, up 567 million yen from March 2024, with a capital-to-asset ratio of 44.7%.

• Cash and deposits increased to 3,492 million yen at period end.

Outlook and guidance

• Revenue growth is expected to accelerate in the second half due to price revisions at CloudSign and Bengoshi.com, and deferred conference sales.

• Operating profit and margin are projected to improve toward Q4 as revenue growth picks up.

• Full-year forecast for March 2025 remains unchanged: net sales of 14,740 million yen, operating profit of 1,700 million yen, and profit attributable to owners of parent of 1,000 million yen.

• SG&A cost increases are expected to pause, with a temporary rise in Q3 due to concentrated exhibitions.