Broadleaf (3673) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of FY2025 rose 17.5% year-over-year to ¥15,231 million, driven by growth in subscription-based software, cloud services, and strong PC replacement demand.

• Operating income and profit attributable to owners increased more than fivefold compared to the same quarter last year, with operating profit at ¥1,492 million (+418.3% YoY) and profit attributable to owners at ¥872 million (+442.5% YoY).

• Revenue delayed by IT subsidy approvals was largely recognized in Q3, supporting a steady rise in cloud adoption.

• The company is executing a medium-term plan focused on cloud penetration and service expansion, with a systematic transition from packaged to cloud-based software.

• Risk mitigation efforts include securing external engineering resources through partner companies.

Financial highlights

• Q3 cumulative revenue: ¥15,231 million (+17.5% YoY); operating profit: ¥1,492 million (+418.3% YoY); profit attributable to owners: ¥872 million (+442.5% YoY).

• Gross profit increased 17.2% YoY to ¥9,857 million; SG&A expenses rose 3.0% YoY.

• Basic EPS for Q3: 9.71 yen, up from 1.81 yen YoY.

• Free cash flow doubled YoY to ¥707 million, with cash and cash equivalents at period end of ¥4,030 million.

• Equity ratio at 57.6% as of September 30, 2025; total assets increased to ¥41,432 million, with equity rising to ¥23,878 million.

Outlook and guidance

• Full-year revenue forecast raised to ¥20,400 million (+13.0% YoY); operating profit forecast increased to ¥1,700 million (+152.2% YoY).

• All profit levels expected to significantly exceed previous year results.

• Cloud services revenue forecast at ¥11,530 million (+40.4% YoY); hardware revenue forecast at ¥2,500 million (+48.0% YoY).

• Annual dividend forecast increased to 5.00 yen per share, with a payout ratio of 44.9%.

• The company expects continued revenue growth from cloud migration and hardware demand through 2028.