Kubell (4448) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 FY2025 grew 10.4% year-over-year, with EBITDA up 18.3%, while revenue for the nine months ended September 30, 2025, rose 12.4% YoY to ¥6,948 million and EBITDA up 52.3%.

• Operating profit for Q3 fell 19.0% YoY, but for the nine months, it increased 48.6% YoY; profit attributable to owners of parent declined 66.6% YoY to ¥45 million.

• The company revised its full-year forecast, expecting revenue of JPY 9.48bn (+12% YoY), EBITDA of JPY 1.31bn (+52.9% YoY), and operating profit of JPY 0.43bn (+345.1% YoY).

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

• BPaaS domain continues to drive growth, with revenue up 60.7% YoY, while SaaS domain revenue rose 5.5% YoY.

Financial highlights

• Q3 revenue: JPY 2,416mn (+10.4% YoY, +5.1% QoQ); EBITDA: JPY 352mn (+18.3% YoY, +20.6% QoQ); operating profit: JPY 127mn (-19.0% YoY, +79.6% QoQ).

• Cumulative Q3 revenue: JPY 6,948mn (+12.4% YoY); cumulative EBITDA: JPY 931mn (+52.3% YoY); gross profit for nine months: ¥4,758 million.

• Gross margin improved to 71.7% in Q3 (+4.8pt QoQ).

• ARR reached JPY 9.12bn (+11.5% YoY); number of client companies: 954,000 (+11.2% YoY).

• Operating profit for nine months increased to ¥274 million from ¥184 million YoY; ordinary profit rose to ¥252 million.

Outlook and guidance

• Full-year 2025 revenue forecast is ¥9,485 million (+12.0% YoY), EBITDA ¥1,310 million (+52.9%), and operating profit ¥431 million (+345.1%).

• Growth rate excluding discontinued security business: +14.0% YoY.

• Medium-term plan targets 30%+ CAGR in revenue through 2026, aiming for ¥15 billion revenue and 10–15% EBITDA margin.

• BPaaS order delays impacted revenue, but proactive hiring and system restructuring are expected to support future growth.

• Growth in Personnel Management BPaaS slower than expected.