GVA TECH (298A) Q2 2025 earnings summary

Executive summary

• Revenue increased 53.6% year-over-year to ¥747.9 million for the first half, driven by higher average customer unit price in LegalTech SaaS and record service usage in the registration business.

• Operating loss narrowed to ¥147.6 million from ¥238.7 million year-over-year due to revenue growth and cost optimization.

• LegalTech SaaS ARR grew significantly, with new features such as AI-powered amendment memoranda and multilingual support launched.

• Strategic alliances, including with Lisse for AI contract review, expanded service reach and cross-sell opportunities.

• Legal tech market growth and increased corporate DX adoption supported business expansion, with SaaS and registration services seeing strong demand.

Financial highlights

• LegalTech SaaS revenue up 68.0% year-over-year; registration business revenue up 40.1% year-over-year.

• Gross profit increased 43.5% year-over-year to ¥457.4 million; gross profit margin declined to 61.2% from 65.5% year-over-year.

• Operating loss for 2Q cumulative period improved to ¥147.6 million from ¥238.7 million year-over-year.

• Net loss for 2Q cumulative period improved to ¥152.5 million from ¥244.1 million year-over-year.

• Net loss per share improved to ¥32.95 from ¥69.25 year-over-year.

Outlook and guidance

• Full-year revenue forecast maintained at ¥1,737 million, up 49.1% from the previous year.

• Operating loss for the full year expected to improve to ¥250 million, with a return to profitability anticipated in 4Q.

• Net loss for the full year forecast at ¥261 million.

• Continued investment in growth, with focus on expanding customer base and improving profitability.

• No change to previously announced guidance; forecasts subject to market uncertainties.