Institution for a Global Society (4265) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended September 30, 2024, rose 2.6% YoY to ¥262.7m, below the ¥319m plan; operating loss was ¥183.5m and net loss was ¥186.4m.

• HR revenue declined as research-group participation fell and a large project was lost; education grew in sales and profit, while Platform/Web3 recorded its first sales but remained loss-making.

• Cash and cash equivalents fell ¥57.1m during the period to ¥574.5m.

Financial highlights

• Net loss attributable to shareholders was ¥186.4m versus ¥180.1m a year earlier; operating loss was ¥183.5m versus ¥181.8m.

• Gross profit fell 49.4% YoY to ¥55.2m as cost of revenue rose 41.1% to ¥207.5m; SG&A declined 17.9% to ¥238.7m.

• Total assets were ¥1,002.0m, down from ¥1,092.3m at the prior fiscal year-end; the equity ratio was 85.2%.

• EPS was -¥41.34 versus -¥40.09 a year earlier.

Outlook and guidance

• FY2025 guidance remains unchanged: revenue of ¥1,050m (+14.6% YoY), operating profit of ¥37m, net profit of ¥35m, and EPS of ¥7.90; no dividend is planned.

• Forecast assumptions include higher-priced DX support orders, referrals from Sumitomo Mitsui Trust Bank, and cost reductions; forecasts remain subject to known and unknown risks.

• Medium-term targets include revenue growth in the 30% range and average operating margin of at least 25%.