Rakus (3923) Q2 2025 earnings summary

Executive summary

• Achieved strong year-over-year sales growth and significant profit increase in H1 FY2025.3, driven by robust performance in the Cloud and IT Outsourcing businesses and flexible advertising cost management.

• Net sales for the six months ended September 30, 2024, rose 30.2% year-over-year to ¥23,002 million, with operating profit up 171.3% to ¥4,660 million and profit attributable to owners of parent up 200.4% to ¥3,630 million.

• Comprehensive income increased to ¥3,793 million from ¥1,235 million year-over-year.

• Main cloud services, Raku Raku Seisan and Raku Raku Meisai, recovered in Q2 after regulatory-driven demand fluctuations.

• Upward revision of full-year guidance and dividend forecast, reflecting strong current performance.

Financial highlights

• Net sales rose to ¥23,002 million (+30.2% YoY); operating profit surged to ¥4,660 million (+171.3% YoY).

• Ordinary profit reached ¥4,660 million (+166.3% YoY); EBITDA was ¥5,182 million (+143.8% YoY).

• Profit attributable to owners of parent increased to ¥3,630 million (+200.4% YoY).

• Gross profit margin improved to 74.0% (from 70.5% YoY); operating profit margin rose to 20.3%.

• Earnings per share for the period were ¥20.04, up from ¥6.67 year-over-year.

Outlook and guidance

• Full-year net sales guidance revised upward to ¥48,500 million (+26.3% YoY); operating profit forecast raised to ¥9,400 million (+69.1% YoY).

• Profit attributable to owners of parent projected at ¥7,310 million (+74.6% YoY); dividend forecast increased to ¥4.10 per share.

• Full-year earnings per share forecast is ¥40.35.

• Continued focus on aggressive investment in recruitment and marketing, with flexible cost allocation based on effectiveness.

• Medium-term targets: 31–32% sales CAGR, net profit of ¥10 billion, and net assets of ¥20 billion by FY2026.3.