F&M Co. (4771) Q1 2025 earnings summary

Executive summary

• Revenue increased 5.9% year-over-year to ¥3,637 million, driven by steady membership growth and expanded service offerings.

• Operating income declined 29.3% year-over-year to ¥408 million due to higher outsourcing, depreciation, and personnel costs.

• Net income decreased 34.4% year-over-year to ¥244 million.

• New product launches and user growth in the Office Station series contributed to business expansion.

• Notable growth in accounting and IT solutions segments.

Financial highlights

• Gross profit rose 5.0% year-over-year to ¥2,405 million, with a gross margin of 66.1%.

• SG&A expenses increased 16.6% year-over-year, impacting profitability.

• EBITDA was ¥783 million, down 10.0% year-over-year, with an EBITDA margin of 21.5%.

• EPS for the quarter was ¥16.76, down from ¥25.57 in the prior year.

• Comprehensive income for Q1 was ¥250 million, down 34.3% year-over-year.

Outlook and guidance

• Full-year revenue forecast remains unchanged at ¥16,680 million, with operating profit projected at ¥1,828 million and net income at ¥1,358 million.

• Focus remains on expanding digital back-office solutions and launching new HR-related products.

• Continued investment in AI and digital transformation to enhance efficiency and user experience.

• No revisions to previously announced guidance; management notes forecasts are subject to change based on economic conditions.