Human Technologies (5621) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 rose 21.6% year-over-year to ¥2,912.8 million, with operating profit up 174.3% to ¥603.4 million, driven by expansion in paying IDs, customer base, and demand in regulated industries.

• Net income attributable to shareholders increased 236.4% to ¥445.4 million.

• Upward revision of full-year guidance, now expecting revenue of ¥5,981 million and operating profit of ¥734 million, reflecting delayed expenses and strong business momentum.

• Continued market leadership in time and attendance SaaS, with 22.9% market share and multiple external awards for product and support quality.

• Focused on expanding customer base and improving operational efficiency through enhanced support and system features.

Financial highlights

• Annual Recurring Revenue (ARR) reached ¥5,280 million, up 21.1% year-over-year.

• Customer churn remains low at 0.25% monthly, with 5.8 million IDs (+17.7%) and 361,700 client companies (+12.4%) as of September 2024.

• Operating margin improved to 20.7% in Q2, with cost controls on personnel and outsourcing.

• EPS for the period: ¥46.43 (up from ¥16.35 year-over-year).

• Ordinary income: ¥604.1 million (up 178.9% year-over-year).

Outlook and guidance

• Full-year revenue forecast raised to ¥5,981 million, operating profit to ¥734 million, net income to ¥532 million, and EPS to ¥55.48, reflecting higher-than-expected progress and cost deferrals.

• Dividend forecast revised to ¥17.00 per share for the year.

• Plans for increased investment in marketing, hiring, system development, and security in the second half.

• Targeting 20% annual revenue growth and 30% operating margin in the medium term.