Integral (5842) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 was ¥1,003 million, down 80.0% year-over-year, with a net loss of ¥272 million compared to a profit of ¥2,521 million in Q1 FY2024, mainly due to market fluctuations and lower fair value gains.

• Fund V Series began its investment period in January 2025, driving a significant increase in recurring fund management fees.

• Asset diversification advanced with new real estate acquisitions and the launch of a global tech & growth fund, including a joint venture with Granite Asia Capital and an alliance with Touring Capital LLC.

Financial highlights

• Q1 FY2025 revenue dropped to ¥1,003 million from ¥5,000 million in Q1 FY2024, mainly due to lower fair value gains.

• Q1 FY2025 net loss attributable to owners was ¥272 million, compared to a profit of ¥2,521 million in Q1 FY2024.

• Economic net worth increased to ¥576 billion as of Q1 FY2025, up from ¥566 billion at FY2024 year-end.

• Fee-earning AUM reached ¥393.3 billion, with a 10–20% targeted annual growth rate.

• Basic EPS was ¥(8.08) versus ¥76.06 in Q1 2024.

Outlook and guidance

• No formal earnings forecast provided due to high dependency on market conditions and fair value estimates.

• Management targets a 30–40% margin on fee-related revenue and a 5-year average ROE of approximately 15%.

• MOIC target for principal investment is around 3.0x.

• Recurring profit/loss forecasts are disclosed for reference, with fund management fees expected to rise to ¥7,430 million for FY2025.

• Ongoing focus on organic and inorganic AUM growth, capital efficiency, and shareholder returns.