Logizard Co (4391) Q2 2025 earnings summary

Executive summary

• Achieved record revenue of ¥1,106,721 thousand for Q2 FY25, up 11.8% year-over-year, with strong growth in cloud services and B2B development projects, and recurring growth in accounts and MRR.

• Operating profit rose to ¥262,281 thousand (up 52.2%), and net profit increased to ¥194,455 thousand (up 57.1%) year-over-year, driven by higher recurring revenue and low churn.

• Cloud services led growth, supported by new account acquisitions, increased B2B demand, and strong performance in automation and system integration.

• Account numbers grew to 1,811 (up 7–9.7%), and MRR reached a record ¥144 million, up 9.7% year-over-year.

Financial highlights

• Cloud service sales increased 9.3% to ¥848 million, with a gross margin of 65.7% (up 9.7 points year-over-year).

• Development and implementation service sales rose 22.5% to ¥205 million; hardware/device sales up 14.2% to ¥52 million.

• Gross profit increased to ¥625,403 thousand (up 15.7%), with overall gross margin at 56.5–58.4%.

• SG&A expenses decreased 1.3% to ¥363 million, mainly due to an 88.9% drop in R&D costs.

• Total assets at year-end were ¥2,382,566 thousand, and equity increased to ¥1,588,825 thousand.

Outlook and guidance

• MRR target for year-end is ¥136–149 million, with current progress at 65.2%.

• Revenue guidance for the next fiscal year is set at ¥3,295,000 thousand.

• Progress rate against full-year revenue target is 50.0%; operating profit progress at 65.4%.

• Plans to expand B2B features, automation, and OMO capabilities to capture logistics trends.

• Shareholder equity is projected to remain stable at ¥3,295,000 thousand.