Cross Cat Co (2307) Q2 2025 earnings summary

Executive summary

• Achieved record-high sales and profits for the first half, with expectations for a fifth consecutive year of revenue growth for the full year.

• Net sales rose 12.3% year-over-year to ¥8,040 million for the six months ended September 30, 2024, driven by strong demand in financial services and public sector segments.

• Strong performance driven by financial, government, and public sector projects, exceeding initial forecasts.

• The company launched a new Medium-term Business Plan, “Growing Value 2026,” focusing on service quality and customer success.

• Strategic focus on expanding core business and cloud-related services, with continued investment in human capital and technology.

Financial highlights

• First-half revenue reached ¥8,223 million, up 2.3% year-over-year and 1.5% above forecast.

• Operating income was ¥881 million, up 1.8% year-over-year and 15.9% above forecast.

• Ordinary profit reached ¥898 million, up 26.7% year-over-year.

• Net income attributable to shareholders was ¥665 million, up 14.1% year-over-year and 33.1% above forecast.

• Gross profit margin for the half was 23.8%.

Outlook and guidance

• Full-year revenue projected at ¥17,100 million, a 5.6% increase year-over-year.

• Full-year net sales forecast is ¥15,600 million, up 4.5% year-over-year, with operating profit projected at ¥1,580 million and profit attributable to owners of parent at ¥1,040 million.

• Operating income forecasted at ¥1,930 million, up 5.1% year-over-year.

• No changes to previously announced financial forecasts.

• Continued investments in employee compensation, training, and office environment to support growth.