Medley (4480) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 sales increased 37% YoY to JPY 8,140 million, driven by growth in both HR PF and Medical PF segments, in line with forecasts.

• EBITDA declined by 6.6% YoY to JPY 426 million, with an operating loss of JPY 121 million versus a profit in Q1 FY2024.

• Net loss attributable to owners was JPY 75 million, compared to a profit in the prior year.

• Profitability was impacted by higher advertising, restructuring, and significant investments in business expansion and M&A.

• New service "Job Medley Spot" launched in May 2025 to address short-term staffing needs and promote retention.

Financial highlights

• Q1 FY2025 sales: JPY 8,140 million (+37% YoY); gross profit: JPY 4,819 million (+37% YoY).

• EBITDA: JPY 426 million (-30% YoY); operating profit: JPY -121 million (down from JPY 246 million in Q1 FY24).

• Ordinary profit: JPY 5 million (down from JPY 723 million YoY); profit attributable to owners: JPY -75 million.

• Basic earnings per share was negative at (JPY 2.34), compared to JPY 14.40 in Q1 FY2024.

• Comprehensive income was negative JPY 88 million, versus positive JPY 506 million a year earlier.

Outlook and guidance

• Full-year FY2025 guidance maintained: sales forecast JPY 39,800 million (+35.8% YoY), EBITDA JPY 5,700 million (+38.5% YoY), operating profit JPY 3,000 million, net income JPY 3,100 million, EPS JPY 95.33.

• Q2–Q4 sales expected to grow 20–50% YoY per quarter; EBITDA margin to improve to 10–25% in H2.

• No dividend forecast for FY2025.

• Management cautions that actual results may differ from forecasts due to variable factors.

• HR PF and Medical PF segments expected to drive H2 growth and margin improvement.