CHANGE Holdings (3962) Q2 2025 earnings summary

Executive summary

• H1 revenue rose 12.7% year-over-year to ¥16,512 million, driven by NEW-IT Transformation and cyber security expansion.

• Operating profit declined 11.1% year-over-year to ¥3,848 million, but exceeded internal targets by 92.4%.

• Progress in establishing business foundations in four new domains and signing a basic agreement for a major cybersecurity JV.

• LoGo Form and Chotatsu Info expanded public sector DX solutions among Tokyo municipalities.

• Proxy donations for disaster relief and regional collaborations highlight social impact.

Financial highlights

• Interim revenue: ¥16,512 million (up 12.7%); operating profit: ¥3,848 million (down 11.1%); profit before taxes: ¥3,489 million (down 20.3%).

• Net profit attributable to owners: ¥2,104 million (down 32.8%); basic interim EPS: ¥29.82.

• EBITDA for H1 was ¥4,972 million, 30.1% of the full-year target.

• Cash and cash equivalents at period end: ¥25,891 million, down ¥12,512 million from prior year-end.

• Total assets: ¥83,796 million; equity: ¥44,007 million; equity ratio: 42.7%.

Outlook and guidance

• Full-year revenue forecast: ¥45,000 million (up 21.6%); operating profit: ¥13,000 million (up 71.9%).

• No change to previously announced consolidated earnings forecast.

• Laying groundwork for DJ3 with strong performance in Publitech and new domains.

• Regional Creation domain returns to regular H2 weighting as Choice donations are no longer brought forward.

• Focus on cross-selling, BPO in Labor Shortage Alleviation, and accelerating cybersecurity JV launch in February 2025.