Broadleaf (3673) Q1 2025 earnings summary

Executive summary

• Revenue for 1Q FY2025 rose 18.5% year-over-year to 4,758 million yen, driven by strong cloud services and hardware sales, leading to a return to profitability at the operating level and below.

• Operating profit reached 353 million yen, reversing a prior year loss of 109 million yen.

• Profit attributable to owners was 196 million yen, compared to a loss of 35 million yen a year ago.

• Cloud migration strategy is on track, aiming for 100% cloud adoption by 2028, with key performance indicators progressing as planned.

• Continued investment in IT infrastructure and security, with cost optimization through AI-driven efficiencies.

Financial highlights

• 1Q FY2025 revenue: 4,758 million yen (+18.5% YoY); operating profit: 353 million yen (vs. -109 million yen YoY); net income: 196 million yen (vs. -35 million yen YoY); EPS: 2.19 yen (vs. -0.39 yen YoY).

• Gross profit margin improved to 65.6% (3,120/4,758 million yen); gross profit increased to 3,120 million yen from 2,605 million yen YoY.

• Recurring revenue accounted for 72.3% of total, up 18.0% YoY.

• Cash and cash equivalents at period end: 3,333 million yen, down 1,896 million yen YoY.

• Net cash from operating activities was 337 million yen, down 58.2% YoY.

Outlook and guidance

• 1H/2Q FY2025 revenue forecast raised to 9,600 million yen (+14.0% YoY); full-year revenue guidance unchanged at 20,100 million yen (+11.4% YoY).

• Full-year operating profit forecast at 1,500 million yen (+122.5% YoY); net income: 1,000 million yen (+191.3% YoY); EPS: 11.13 yen.

• Annual dividend forecast revised to 5.00 yen per share (payout ratio 44.9%).