Institution for a Global Society (4265) Q4 2025 earnings summary

Executive summary

• FY March 2025 revenue was ¥602.9m, down 34.2% YoY; net loss was ¥336.3m, with both results meeting or beating the revised plan.

• FY March 2026 priorities include stabilizing GROW360 and AiGROW delivery, optimizing costs, rebuilding organizational capabilities, and strengthening the financial base.

Financial highlights

• Gross profit fell 65.5% to ¥197.1m; operating loss widened to ¥303.1m from ¥21.7m, and SG&A declined 15.7% to ¥500.3m.

• Cost of sales rose 17.6% to ¥405.8m; SG&A personnel costs increased 20.3% to ¥226.0m, while R&D fell 83.2% to ¥26.5m.

• Year-end cash and equivalents were ¥321.6m, down ¥310m YoY; operating cash flow was -¥225.1m for the third consecutive year.

• HR revenue fell 30.4% to ¥238.2m, with a ¥21.9m segment loss; education revenue rose 4.8% to ¥308.7m, with ¥97.9m segment profit.

• Web3 revenue fell 80% to ¥56.0m and segment loss widened to ¥146.9m.

Outlook and guidance

• FY March 2026 guidance is revenue of ¥830m, up 37.7% YoY, and net profit of ¥63m, versus a ¥336.3m net loss in FY March 2025.

• Forecasts assume HR revenue of ¥370m (+55.3%), education revenue of ¥350m (+13.4%), and PF/Web3 revenue of ¥110m (+96.5%).

• Guidance assumes growth in HR and education, PF/Web3 consulting monetization, and a 15% cost reduction versus FY March 2025 to achieve profitability.

• Medium-term targets include 30%+ revenue growth and a 25%+ operating margin; strategic focus includes platform expansion and overseas growth.