Medley (4480) Q4 2025 earnings summary

Executive summary

• Achieved strong sales growth in FY2025, with Q4 sales up 21% YoY and full-year sales up 26% YoY, driven by both HR PF and Medical PF segments.

• EBITDA margin improved to 13% in Q4 (up 5% pt YoY), with HR PF at 40% and Medical PF at 4%.

• Results were in line with revised full-year forecasts, despite a deferral of approx. 350 million yen in Medical PF sales to FY2026.

• Continued proactive investment in growth, funded by profitable businesses, and operational efficiency improvements through AI.

Financial highlights

• Q4 FY2025: Sales 9,249 million yen (+21% YoY), EBITDA 1,242 million yen (+612 million YoY), Operating Profit 538 million yen (from -31 million), Net Profit -139 million yen (impacted by tax items).

• Full-year FY2025: Sales 36,786 million yen (+26% YoY), EBITDA 4,821 million yen (+17% YoY), Operating Profit 2,150 million yen (-8% YoY), Net Profit 975 million yen (-65% YoY).

• Gross margin for FY2025 was 63.0%.

• Cash flow from operations remained steady; goodwill-to-equity ratio rose to 1.54x.

Outlook and guidance

• FY2026 forecast: Sales 46,400 million yen (+26% YoY), EBITDA 5,800 million yen (margin 12.5%), Net Profit 1,800 million yen.

• EBITDA margin expected to decrease slightly due to proactive domestic investments.

• Mid-term targets: FY2029 sales of 100 billion yen and EBITDA of 20 billion yen, with ongoing M&A and strategic investments.