M3 (2413) Q4 2025 earnings summary

Executive summary

• FY2024 revenue rose 19% year-over-year to JPY 284.9 billion, driven by normalized segment growth and acquisitions, notably ELAN.

• Operating profit declined 2% year-over-year to JPY 62.97 billion, mainly due to post-COVID business rebounds and impairment losses.

• Profit before tax fell 6% year-over-year to JPY 64.79 billion; net profit dropped 9% to JPY 44.34 billion.

• ELAN Corporation was acquired and integrated as the new Patient Solution segment.

• COVID-related sales impact diminished significantly, with regular businesses showing robust organic growth.

Financial highlights

• Revenue excluding COVID-related sales grew 23% year-over-year.

• Total assets increased to JPY 581.7 billion from JPY 490.8 billion year-over-year.

• Cash and cash equivalents at period end were JPY 134.9 billion, down from JPY 149.7 billion.

• Operating profit missed forecasts due to underperformance in Medical Platform and Evidence Solution segments and overseas impairment losses.

• Dividend per share set at JPY 21, with a payout ratio of 35.2%.

Outlook and guidance

• FY2025 revenue projected at JPY 360 billion, a 26% increase year-over-year, with COVID-related sales expected to be minor.

• Operating profit projected at JPY 70 billion (+11%), net profit attributable to owners at JPY 45 billion (+11%).

• Growth to be driven by ecosystem expansion, new business development, and synergy creation, especially with recent acquisitions (ELAN, EWEL).

• Dividend forecast for FY2026 is undetermined, pending capital needs and cash flow.

• Overseas and domestic businesses expected to continue steady growth, with renewed focus on digital transformation (DX) and clinical scene DX.