Medley (4480) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 sales reached 10.3 billion yen, up 18% YoY, confirming a bottoming out with July up 24% YoY, but slightly below expectations.

• H1 FY2025 net sales rose 25.6% YoY to 18,465 million yen, driven by HR PF and Medical PF growth.

• EBITDA margin for Q2 was 22%, down 6 percentage points YoY; H1 EBITDA declined 7.8% YoY to 2,696 million yen.

• Full-year FY2025 forecast remains unchanged, with cost controls expected to offset sales hurdles.

• Segment growth supported by customer and user base expansion, strategic acquisitions, and new service launches.

Financial highlights

• Q2 FY2025 sales: 10,325 million yen (+18% YoY); H1 sales: 18,465 million yen (+25.6% YoY).

• EBITDA: 2,270 million yen in Q2 (down 197 million YoY); H1 EBITDA: 2,696 million yen (down 7.8% YoY).

• Operating profit for H1: 1,461 million yen (down 35.4% YoY); Q2 operating profit: 1,582 million yen (down 433 million YoY).

• Net profit attributable to owners: 723 million yen in Q2 (down 818 million YoY); 647 million yen in H1 (down 67.8% YoY).

• Cash and cash equivalents at period end: 13,521 million yen.

Outlook and guidance

• Full-year FY2025 sales forecast: 39.8 billion yen; risk of missing by 5% remains.

• EBITDA and operating profit targets expected to be met through cost controls.

• Q3 and Q4 sales growth expected to accelerate to +35% and +30% YoY, respectively.

• No dividend planned for FY2025.

• Deferred tax assets from subsidiary merger expected to positively impact Q3 by 500 million yen.