Institution for a Global Society (4265) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue rose 32.7% YoY to ¥108.208m; operating loss narrowed to ¥119.363m and net loss to ¥119.495m, with growth in education and Platform/Web3 offset by weaker HR sales.

Financial highlights

• Cost of sales rose 57.6% to ¥98.147m, reducing gross profit 47.8% to ¥10.060m; SG&A fell 17.6% to ¥129.423m, including an 84.1% decline in R&D expense to ¥6.370m as ONGAESHI development wound down.

• Net loss attributable to owners of parent improved from ¥138.547m; EPS improved to -¥26.50 from -¥30.86 YoY.

Outlook and guidance

• Full-year revenue forecast remained ¥1,050m, with net income forecast at ¥35m; strategic targets include revenue growth in the 30% range and average operating margin of at least 25%.

• Priorities include Global South expansion, extending the PF/Web3 model, cross-selling and upselling, partnerships, and using DID for education and employment histories.

• Mitsui Sumitomo Trust Bank partnership sales are expected from H2; a new human-capital product is complete, with upselling anticipated.