Forside Co (2330) Q2 2025 earnings summary

Executive summary

• Operating revenue for Q2 FY2025 rose 70.9% year-over-year to ¥3,753.9 million, driven by strong performance in prize, event, and AI-related businesses, as well as new logistics and human resources segments.

• Operating profit improved from a loss of ¥68.2 million to a profit of ¥188.4 million year-over-year, reflecting cost reductions and business portfolio shifts.

• Net income attributable to shareholders turned positive at ¥172.4 million, up from a loss of ¥75.7 million in the prior year.

• Major growth drivers included strong AI-related business and the acquisition of a new HR services subsidiary.

Financial highlights

• Gross profit decreased slightly to ¥870 million (93.1% of prior year), despite higher revenue, due to increased cost of sales from AI server business.

• Selling, general, and administrative expenses dropped to ¥681 million (68.0% of prior year), mainly due to withdrawal from the real estate business.

• Ordinary profit was ¥197.5 million, compared to a loss of ¥60.5 million last year.

• Total assets increased to ¥5,452.3 million from ¥3,565.4 million at the previous year-end.

• Cash and equivalents rose by ¥815.4 million to ¥2,219.4 million.

Outlook and guidance

• Full-year consolidated operating revenue is forecast at ¥8,758 million, a 64.0% increase year-over-year.

• Full-year operating profit is projected at ¥350 million, marking a substantial turnaround from previous losses.

• Net income is forecast at ¥304 million, up 373% year-over-year.

• Dividend forecast remains undecided, pending future performance.