Digital Garage (4819) Q3 2025 earnings summary

Executive summary

• Achieved strong growth in payment transaction volume (+22% YoY), surpassing ¥2 trillion in a quarter for the first time, driven by strategic alliances and QR code payment expansion.

• PS segment profit before tax rose 17% YoY, with 23% profit growth in 3Q alone as churn impact subsided.

• Revenue for the nine months ended December 31, 2024 was ¥27,580 million, nearly flat year-over-year (up 0.1%).

• Profit before tax declined sharply to a loss of ¥7,592 million from a profit of ¥6,136 million year-over-year.

• On track to achieve full-year profit growth targets and medium-term plan ahead of schedule.

Financial highlights

• Consolidated profit before tax: ¥6,136m in FY24.3 3Q YTD to -¥7,592m in FY25.3 3Q YTD, mainly due to Blockstream valuation loss in 2Q.

• Basic business profit (excluding investment/one-time items): ¥3,100m (+18.5% YoY).

• Payment transaction volume: ¥5,599bn (+22.2% YoY); online +15%, offline +39.9%.

• Total assets increased to ¥258,453 million from ¥231,431 million as of March 31, 2024.

• Cash and cash equivalents rose to ¥80,348 million from ¥49,571 million at the previous year-end.

Outlook and guidance

• PS segment targets +20–25% profit growth for FY25.3, with payment business maintaining +20% full-year profit growth forecast.

• Company does not disclose consolidated financial results forecast due to difficulty in estimating fair value of investment securities.

• Dividend forecast for FY2025 is ¥53 per share, including a ¥10 commemorative dividend.