CHANGE Holdings (3962) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 revenue of ¥8,139 million, up 59% year-over-year, with operating profit rising 242.1% to ¥2,453 million and net profit attributable to owners reaching ¥1,432 million, driven by strong performance across all business domains and M&A activity.

• Surpassed H1 operating profit targets, laying groundwork for the next business phase and sustainable growth through digital transformation and regional revitalization.

• Notable contributions from newly consolidated subsidiaries, revaluation gains, and AI-driven training and cybersecurity services.

Financial highlights

• Q1 revenue increased 59% year-over-year to ¥8,139 million; operating profit grew 242.1% to ¥2,453 million.

• Net profit attributable to owners was ¥1,432 million, up 67.5% year-over-year; basic EPS rose to ¥20.03.

• EBITDA for Q1 reached 2,907 million yen, representing 35.7% of the full-year target.

• Gross profit was ¥4,887 million; gross margin for Q1 was 55.7%.

• Cash and cash equivalents at quarter-end were ¥22,737 million, down ¥10,665 million from the previous fiscal year-end, mainly due to treasury share repurchases and changes in subsidiary status.

Outlook and guidance

• Full-year revenue forecast remains at ¥45,000 million, with operating profit projected at ¥13,000 million and net profit attributable to owners at ¥8,069 million.

• Business plans are weighted toward the second half, but strong Q1 results provide a solid foundation for achieving full-year targets.

• No changes to previously announced guidance; management maintains a positive outlook based on current trends.