Quants Research Institute Holdings Inc (9552) Q2 2025 earnings summary

Executive summary

• Net sales for FY2025/9 Q2 were ¥7,658mn, down 10.2% YoY; operating profit fell 49.8% to ¥2,480mn, with an operating margin of 32.4% (down from 57.9%). Increased deal breakups impacted revenue, but advisory contract backlogs reached record highs, indicating future sales potential. Investments in management, HR, and compliance contributed to lower profits.

Financial highlights

• Gross profit for Q2 was ¥4,769mn (gross margin 62.3%, down 14.6pt YoY). Net income was ¥1,568mn, a 50.6% decrease YoY, with a net income margin of 20.5% (down 16.7pt).

• M&A Brokerage segment Q2 sales were ¥7,095mn (-16.4% YoY), operating profit ¥2,682mn (-46.9% YoY), and operating margin 37.8%.

• Incubation segment Q2 sales were ¥563mn (+1211.0% YoY), operating loss ¥-166mn.

• As of Q2, 329 M&A advisors (+36.0% YoY), with 395 including confirmed hires.

Outlook and guidance

• Full-year net sales forecast is ¥17,950mn (+8.5% YoY), operating profit ¥5,732mn (-31.8% YoY), and net income to ¥3,960mn (-31.6% YoY).

• M&A Brokerage sales forecast at ¥16,500mn (+1.2% YoY), Incubation at ¥1,450mn (+487.0% YoY).

• Number of M&A advisors targeted at 400–450; sales per advisor expected at ¥43–46mn.

• Consulting business sales forecast revised upward to ¥1,450mn, with consultant headcount plan raised to ~140.

• Net income per share forecast corrected to 67.65 yen.