ELEMENTS (5246) Q1 2025 earnings summary

Executive summary

• Quarterly revenue rose 715 million yen, up 65.5–66% year-over-year, driven by LIQUID eKYC and AI cloud-based authentication solutions.

• EBITDA reached 91 million yen, up 237% year-over-year; operating loss narrowed to -13 to -13.9 million yen.

• Net loss attributable to shareholders widened to 51–51.8 million yen year-over-year.

• Acquisition of Polarify (PolariPhi) completed, with 95.01% of shares acquired for 1,539 million yen, making it a consolidated subsidiary.

• Focus remains on domestic market expansion, especially in digital transformation (DX) and eKYC services.

Financial highlights

• Revenue: 715 million yen (+65.5–66% YoY); personal authentication solutions contributed 707 million yen (+67% YoY).

• Gross profit: 331.8–634 million yen (+66% YoY); gross margin maintained at 88.7%.

• EBITDA: 91 million yen (+64 million yen YoY); operating loss: -13 to -13.9 million yen (improved YoY).

• Net loss attributable to parent: -51 to -51.8 million yen (down YoY).

• Total assets rose to 5,354 million yen, mainly due to higher cash, work-in-progress, and tangible fixed assets.

Outlook and guidance

• FY2025 revenue forecast: 3,730–3,900 million yen (+46.5–53.2% YoY); personal authentication revenue: 3,681–3,851 million yen.

• EBITDA expected to remain positive; operating and net income to remain negative.

• Guidance excludes impact of newly consolidated PolariPhi; updates to be disclosed when available.

• Mid-term targets for FY2027: revenue 6–6.5 billion yen, operating margin 15%, EBITDA margin 25%, with 30%+ CAGR.