GMO TECH (415) Q4 2025 earnings summary

Executive summary

• FY2025 revenue rose 0.8% YoY to ¥6,923m, while operating income fell 42.2% to ¥519m amid affiliate-service weakness, integration costs and investment in newly consolidated businesses.

• Recurring-revenue services expanded; MEO grew strongly, affiliate revenue recovered sequentially, and real estate tech reached quarterly profitability in 4Q.

• The Oct. 1, 2025 integration with DesignOne established a new holding structure; consolidated results include DesignOne’s October–December period.

Financial highlights

• FY2025 revenue was ¥6,923m, gross profit ¥3,379m, operating income ¥519m and ordinary income ¥479m; revenue was 5.2% and operating income 1.9% below forecasts.

• Net income attributable to owners was ¥1,539m, including ¥1,141m of non-cash negative goodwill recognized as extraordinary income.

• Gross profit increased from ¥2,869m to ¥3,379m, while SG&A rose from ¥1,970m to ¥2,859m; operating margin declined to 7.5% from 13.1%.

• Operating cash flow was ¥266m, investing cash flow -¥243m and financing cash flow -¥419m; ending cash and equivalents were ¥2,965m.

Outlook and guidance

• FY2026 forecast: revenue ¥9,600m (+38.7%), operating income ¥700m (+34.7%), ordinary income ¥705m and net income ¥443m; EPS ¥280.60.

• FY2026 net income forecast compares with FY2025 adjusted net income of ¥398m excluding the negative goodwill gain; forecasts depend on recurring-service growth and recovery in affiliate and media services.

• Segment forecasts: customer acquisition support revenue ¥8,982m and operating income ¥666m; real estate tech revenue ¥617m and operating income ¥33m.

• Priorities include scaling MEO and real estate tech recurring revenue, strengthening products and organizations, and returning affiliate and Ekiten media services to growth.