Kakaku.com (2371) Q3 2025 earnings summary

Executive summary

• Revenue for the nine months ended December 31, 2024, rose 16.5% year-over-year to ¥56,687 million, with operating profit up 20.6% and net profit attributable to owners up 19.1%.

• Q3 FY25/3 revenue was ¥20,324 million, up 17.9% year-over-year, with operating profit at ¥8,032 million, up 14.7%.

• All major business segments except Incubation posted strong revenue and income growth.

• Impairment losses of ¥588 million were recorded, mainly on intangible assets and goodwill related to Pathee, Inc.

• Board resolved to transfer all shares of Pathee, Inc. to mov inc.

Financial highlights

• Operating margin for Q3 was 39.5%, down 1.1pt year-over-year; nine-month operating margin was 38.9%.

• Total expenses for Q3 increased 21.7% year-over-year, mainly due to higher advertising and commission costs, especially for Kyujin Box.

• Basic earnings per share for the nine months was ¥76.38, up from ¥63.12 year-over-year.

• Cash and cash equivalents increased by ¥5,267 million to ¥42,969 million.

• Total assets as of December 31, 2024, were ¥91,749 million.

Outlook and guidance

• Full-year revenue forecast is ¥74,000 million (+10.6% year-over-year), with operating profit of ¥28,500 million (+10.4%) and profit attributable to owners at ¥19,400 million (+7.2%).

• Annual dividend per share is expected to be ¥80, including a special dividend of ¥30.

• Management targets ROE of 40% and a dividend payout ratio of at least 50%.

• No change to full-year guidance despite stronger-than-expected results, due to potential investments in main businesses.

• Continued growth investment planned for Kyujin Box in the second half.