CYND (4256) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 was ¥532.7 million, up 18.2% year-over-year, with operating profit at ¥62.6 million (up 213.8% YoY), and net profit at ¥25.4 million, reversing a prior-year loss.

• EBITDA rose 43.4% year-over-year to ¥143 million, with significant improvement in operating profit margin due to subsidiary profitability.

• The company expanded its sales organization, opened a Sapporo office, and increased contracted stores to 18,139, reflecting ongoing business growth.

• Net income for the quarter showed a high progress rate against the annual plan, though one-time costs for HQ relocation are expected in 3Q.

Financial highlights

• ARR reached ¥1.98 billion, up 16.8% year-over-year, reflecting robust subscription growth.

• Contracted store count increased 15.1% YoY to 18,139, with ARPU stable.

• Customer churn rate remained low at 0.69%, consistently below 1%.

• Gross profit grew to ¥415.7 million (up 26.0% YoY), and net assets increased to ¥3,221 million with an equity ratio of 65.7%.

• Total assets decreased slightly to ¥4,906 million, mainly due to goodwill amortization.

Outlook and guidance

• FY2025 full-year revenue is forecast at ¥2,244 million (+15.0% YoY), with EBITDA of ¥540 million (+12.5% YoY), operating profit of ¥223 million, and net profit of ¥40 million.

• Targeting 20,000 contracted stores by year-end and maintaining EBITDA margin in the 20–30% range.

• Mid-term goal: consolidated revenue of ¥3 billion by FY2027, with continued organic growth.

• No changes to previously announced guidance.