Cross Cat Co (2307) Q4 2025 earnings summary

Executive summary

• Achieved record-high revenue and profit for the fourth consecutive year, surpassing prior-year and initial forecasts, driven by large high-value projects for government and public sector clients and strong growth in SI and DX segments.

• Net sales reached ¥16,194 million, up 8.5% year-on-year, with operating profit rising 20.7% to ¥1,836 million and ordinary profit increasing 20.9% to ¥1,898 million.

• Maintained aggressive growth investments, particularly in human capital, including increased hiring, wage hikes, and expanded training programs.

• Launched the new Medium-term Business Plan, "Growing Value 2026," focusing on business model transformation, asset-based business expansion, and human capital enhancement.

• Increased annual dividend by ¥5 to ¥33 per share (payout ratio 35.4%), with a further increase to ¥34 planned for the next fiscal year.

Financial highlights

• Revenue rose 8.5% year-over-year to ¥16,194 million, exceeding both prior-year and forecast.

• Operating income increased 20.7% year-over-year to ¥1,836 million, with improved gross margin and controlled SG&A expenses.

• Gross profit improved 9.5% year-on-year to ¥3,846 million, and gross profit margin was 23.8%.

• Net income attributable to shareholders grew 0.4% year-over-year to ¥1,316 million, 26.6% above forecast.

• Net assets increased by ¥770 million to ¥5,853 million, and the equity ratio rose to 55.6%.

Outlook and guidance

• For the fiscal year ending March 2026, revenue is projected to grow 5.6% to ¥17,100 million, with operating income up 5.1% to ¥1,930 million and profit attributable to owners of parent at ¥1,350 million (+2.5%).

• Despite a temporary decline in the first half due to the absence of large prior-year projects, full-year growth in both revenue and profit is expected.

• Continued investment in human capital, wage increases, and office environment improvements planned.

• The new Medium-term Business Plan supports business model transformation and asset-based business expansion.