Forside Co (2330) Q4 2025 earnings summary

Executive summary

• Revenue for the year ended December 2025 rose 63.8% year-over-year to ¥8,748 million, driven by strong prize and AI-related business orders, robust logistics, and event business expansion, offsetting the exit from real estate.

• Operating profit surged 921.6% year-over-year to ¥463 million, with cost reductions from real estate exit and strong performance in prize, staffing, logistics, and AI segments.

• Net income attributable to shareholders increased 583.9% year-over-year to ¥440 million, reflecting improved profitability across core businesses.

• Major growth was driven by AI-related and prize businesses, with new entry into comprehensive human resources services via acquisition of antz.

• All major segments except publishing (master rights) and content improved profitability or reduced losses.

Financial highlights

• Operating revenue: ¥8,748 million (up from ¥5,340 million year-over-year).

• Operating profit: ¥463 million (up from ¥50 million year-over-year).

• Ordinary profit: ¥479 million (up from ¥47 million year-over-year).

• Net income: ¥440 million (up from ¥64 million year-over-year).

• Operating profit margin rose to 5.3% (from 0.9% prior year); net profit margin at 5.0%.

• Cash and equivalents at year-end increased to ¥2,197 million (+¥793 million YoY).

• Operating cash flow ¥668 million (vs. ¥163 million prior year); investing cash flow ¥217 million inflow (vs. ¥596 million outflow prior year).

Outlook and guidance

• FY2026 revenue forecast: ¥5,998 million, indicating a significant decrease from FY2025.

• FY2026 operating profit forecast: ¥108 million, down from ¥463 million in FY2025.

• FY2026 net income forecast: ¥80 million, down from ¥440 million in FY2025.

• AI-related business expected to face sharp revenue decline due to intensified competition in GPU server sales.

• Focus on expanding prize, logistics, and HR services, with continued cost controls and new business development.