Medley (4480) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 sales reached 9,071 million yen, up 31% year-over-year, with nine-month net sales rising 27.2% to 27,536 million yen, driven by growth in both HR PF and Medical PF businesses.

• HR PF segment sales growth recovered to +27% YoY in Q3, while Medical PF accelerated to +38% YoY, aided by brand renewal and system efficiency improvements.

• EBITDA margin improved to 10% in Q3, with nine-month EBITDA up 2.7% YoY to 3,578 million yen, but operating profit and net profit attributable to owners declined due to higher investments and costs.

• Full-year FY2025 sales and EBITDA forecasts were revised to 36,900 million yen and 4,800 million yen, respectively, with profit forecasts lowered.

• Major share repurchase of up to 3 billion yen (up to 1,500,000 shares, 4.8% of issued shares) was authorized, totaling up to 7 billion yen for the year.

Financial highlights

• Q3 sales: 9,071 million yen (+31% YoY); nine-month gross profit: 10,143 million yen; EBITDA: 881 million yen in Q3 and 3,578 million yen for nine months.

• Operating profit: 150 million yen in Q3; nine-month operating profit declined 31.7% to 1,611 million yen.

• Profit attributable to owners: 467 million yen in Q3; nine-month net profit fell 52% to 1,114 million yen.

• Q3 sales trailed initial forecast by about 7%.

• Equity-to-asset ratio decreased to 37.8% from 44.7% at the previous year-end.

Outlook and guidance

• FY2025 full-year sales forecast revised to 36,900 million yen (+25.9% YoY), EBITDA to 4,800 million yen (13.0% margin), and net profit forecast to fall 53.5% to 1,300 million yen.

• FY2026 performance expected to be between FY2024 and FY2025 levels.

• Basic earnings per share for the full year is forecast at 41.45 yen.

• Mid-term targets: FY2029 sales of 100 billion yen and EBITDA of 20 billion yen, with progress on track.