Broadleaf (3673) Q2 2025 earnings summary

Executive summary

• Revenue for the second quarter rose 16.6% year over year to 9,819 million yen, driven by growth in cloud services, subscription-based software, and PC replacement demand.

• Operating profit reached 771 million yen, reversing a prior-year loss, and net income attributable to owners was 417 million yen, up from a loss of 14 million yen.

• Full-year operating profit forecast was revised upward due to strong progress and a favorable business environment.

• Cloud services sales surged 45.0% year over year, while packaged system sales declined 17.3% as the transition to cloud continued.

• The company recorded an impairment loss on shares of an equity-method affiliate during the period.

Financial highlights

• Second quarter revenue reached 9,819 million yen, up 16.6% year over year.

• Operating profit was 771 million yen, compared to a loss of 44 million yen in the prior year.

• Gross profit increased to 6,371 million yen from 5,460 million yen year over year.

• Net income attributable to owners was 417 million yen, up from a loss of 14 million yen.

• Recurring revenue increased 18.6% year over year, with a recurring revenue ratio of 71.7%.

Outlook and guidance

• Full-year revenue forecast maintained at 20,100 million yen, up 11.4% year over year.

• Operating profit forecast raised to 1,600 million yen, more than doubling year over year.

• Net income forecast at 1,000 million yen, up 191.5% year over year; basic EPS forecast at 11.13 yen.

• Year-end dividend forecast maintained at 2.50 yen per share, total annual dividend 5.00 yen.

• Cloud adoption rate targeted to reach 35% by year-end and 100% by 2028.