Integral (5842) Q4 2025 earnings summary

Executive summary

• Achieved steady progress in asset diversification, launching Real Estate Fund I and executing two GlobalTech Growth investments in 2025.

• Private equity Fund V began in 2025, driving a significant increase in recurring management fee revenue.

• Revenue for FY2025 was ¥13,655 million, down 56.3% year-over-year, with profit attributable to owners at ¥6,077 million, down 66.4% year-over-year.

• Decline in revenue and profit was mainly due to lower fair value gains and absence of prior year one-time fundraising income, despite higher personnel and office costs.

• Deferred tax liabilities increased due to a new statutory tax rate, impacting income tax adjustments.

Financial highlights

• Revenue decreased to ¥13.6bn in 2025 from ¥31.2bn in 2024, mainly due to fluctuations in carried interest and fair value.

• Profit attributable to owners dropped to ¥6.1bn in 2025 from ¥18.1bn in 2024.

• Total assets rose to ¥83,303 million from ¥79,050 million, and equity attributable to owners increased to ¥62,422 million.

• Cash and cash equivalents at year-end were ¥19,277 million, down from ¥22,137 million.

• Fund management fees increased year-over-year as Fund V entered its investment period.

Outlook and guidance

• Dividend policy maintains a 2% Dividend on Equity (DoE) for FY2026, with an annual dividend forecast of JPY 37 per share.

• No formal earnings forecast for FY2026 due to high dependency on market conditions and fair value estimates.

• Recurring profit/loss forecasts provided for reference, with fund management fees expected to remain stable and management support fees to increase.

• Continued focus on expanding asset classes, including infrastructure and credit, with feasibility studies ongoing.

• Group aims to expand AUM and maximize carried interest over the medium to long term.