PCA (9629) Q3 2025 earnings summary

Executive summary

• Net sales for the first half of FY2025 rose 11.6% year-over-year to 7,895M yen, with operating profit up 37.7% to 1,375M yen and profit attributable to owners up 38.4% to 913M yen.

• Revenue rose 10.0% year-over-year to ¥12,061 million for the nine months ended December 31, 2024, driven by price revisions and increased cloud service users.

• Operating income increased 24.0% year-over-year to ¥2,107 million; net income attributable to shareholders grew 24.1% to ¥1,443 million.

• Growth was driven by strong cloud and subscription service sales, offsetting declines in packaged product sales after their termination in March 2024.

• Strategic focus shifted to subscription-based cloud services, with the discontinuation of packaged software sales by March 2024.

Financial highlights

• Gross profit increased 17.1% year-over-year to 5,186M yen, with gross margin improving to 65.7%.

• Gross profit increased to ¥7,801 million from ¥6,940 million year-over-year.

• EPS for the period was 71.99 yen, up from 58.07 yen in the prior year.

• Comprehensive income rose 55.9% year-over-year to ¥1,880 million.

• Cloud sales surged 30.9% year-over-year, now accounting for 57.1% of total sales; maintenance sales rose 11.1%, while product sales dropped 58.1%.

Outlook and guidance

• Full-year FY2025 net sales are forecast at 16,507M yen (+9.9% year-over-year), with operating profit expected at 2,357M yen (+2.1%).

• Profit attributable to owners is projected at 1,656M yen (+2.8%), and EPS at 82.70 yen.

• Dividend per share is set to increase to 83 yen, with a payout ratio of 100.4%.

• The company aims to quickly achieve an ROE of 10% and maintain a positive EVA spread, prioritizing shareholder returns until these goals are met.

• No change from previous guidance.