Integral (5842) Q3 2025 earnings summary

Executive summary

• Achieved robust investment and exit activity in FY2025 Q3, including five new investments and two exits, with notable transactions in steel fabrication, blood purification, and online golf services.

• Fund V launch in 2025 significantly increased recurring management fee revenue, supporting overall financial stability.

• Real estate business expanded, with acquisition value exceeding ¥30 billion and active value-add strategies such as renovations and conversions.

• Major investment activities included new investments in Yamane Holdings, Asahi Kasei Medical, and a tender offer for Golf Digest Online, as well as exits such as the IPO of Primo Global Holdings.

• A new GlobalTech Growth investment business was launched.

Financial highlights

• Revenue for the nine months ended September 30, 2025, was ¥8,939 million, down 48.6% year-over-year, mainly due to lower fair value gains.

• Profit attributable to owners dropped to ¥3,652 million in 2025 Q3 from ¥9,300 million in 2024 Q3, reflecting fair value adjustments and higher personnel expenses.

• Fund management fees increased year-over-year, driven by Fund V entering its investment period.

• Carried interest income was recognized from the IPO exit of Primo Global Holdings.

• Cash and cash equivalents at period end were ¥15,029 million as of September 30, 2025.

Outlook and guidance

• FY2025 revenue and profit expected to decrease in line with Q3 trends, but management fees are projected to continue rising in Q4.

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

• Reference recurring profit/loss forecast for FY2025: fund management fees expected at ¥7,430 million, management support fees at ¥286 million, and recurring expenses at ¥4,222 million.

• Targeting fee-earning AUM growth rate of 10–20% and maintaining a fee-related revenue margin of 30–40%.

• Five-year average ROE targeted at approximately 15%, with a dividend on equity (DOE) of 2%.