Digital Garage (4819) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended September 30, 2024, was ¥17,581 million, down 21.4% year-over-year; profit before tax was a loss of ¥12,530 million compared to a profit of ¥8,266 million last year.

• Net loss attributable to owners was ¥8,582 million, reversing from a profit of ¥5,617 million in the prior year period.

• Comprehensive loss totaled ¥9,136 million, compared to comprehensive income of ¥5,833 million a year earlier.

Financial highlights

• Recurring business revenue increased to ¥14,884 million from ¥12,791 million year-over-year, but operational investment securities revenue dropped sharply.

• Loss in operational investment securities was ¥8,736 million, a significant negative swing from the prior year.

• Basic and diluted EPS were both negative at (¥183.45), compared to positive EPS of ¥123.19 and ¥121.80, respectively, last year.

• Total assets decreased to ¥219,501 million from ¥231,431 million as of March 31, 2024.

• Net cash provided by operating activities was ¥21,206 million, a turnaround from a ¥9,440 million outflow last year.

Outlook and guidance

• Platform Solution segment expects stable growth in payment business and forecasts a 20%–25% increase in profit before tax for the segment year-over-year.

• No consolidated financial results forecast disclosed due to difficulty in estimating fair value of startup investments.