Kubell (4448) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2025, rose 13.4% YoY to JPY 4,532mn, with Q2 FY2025 revenue up 11.5% YoY; EBITDA surged 84.7% YoY and operating profit rose 437.9% YoY, driven by cost-effectiveness and margin improvements.

• Despite strong operational gains, a net loss attributable to owners of parent of JPY 14mn was recorded in H1, compared to a profit in the prior year.

• The business shifted to a single Platform segment after discontinuing the Security segment at the end of 2024.

• Major rebranding and integration activities included launching "TAXITA" and merging subsidiaries to accelerate BPaaS growth.

• BPaaS business is the main growth driver, with segment integration and new management structure to accelerate group synergies.

Financial highlights

• Q2 FY2025 revenue: JPY 2,297mn (+11.5% YoY, +2.9% QoQ); cumulative H1 revenue: JPY 4,532mn (+13.4% YoY); EBITDA: JPY 292mn (+55.2% YoY); cumulative H1 EBITDA: JPY 578mn (+84.7% YoY, 57.8% of full-year forecast).

• Operating profit: JPY 70mn (+72.8% YoY); cumulative H1 operating profit: JPY 146mn (+437.9% YoY); ordinary profit: JPY 133mn (+705.6% YoY).

• Gross profit: JPY 1,536mn (+7.0% YoY); gross margin stable at 66.9%.

• Net loss attributable to owners: JPY 14mn in Q2, cumulative H1 at -JPY 14mn; basic EPS: -JPY 0.36.

• ARR for Chatwork business reached JPY 7,088mn, with 822,000 paying IDs and ARPU of JPY 713.6.

Outlook and guidance

• FY2025 revenue forecast revised to JPY 9,571–9,826mn (+13.0–16.0% YoY); EBITDA forecast raised to JPY 1,000–1,300mn (+17.3–51.7% YoY); operating profit to JPY 120–414mn (+23.9–328.2% YoY).

• Net profit forecast: -JPY 236mn to JPY 41mn; EPS: -JPY 5.64 to JPY 0.98.

• BPaaS expected to drive growth, with continued focus on new customer acquisition and productivity improvements.

• Medium-term plan targets 30%+ CAGR in revenue and EBITDA margin of 10–15% by FY2026.