Rakus (3923) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 FY2025.3 rose 27.7% year-over-year to 35,549 million yen, with operating profit up 111.3% to 7,546 million yen and profit attributable to owners of parent up 125.9% to 5,590 million yen.

• Strong demand for digital transformation and IT investment fueled robust growth in Cloud and IT Human Resources segments.

• The company is progressing toward FY2026.3 mid-term targets, aiming for a 31–32% sales CAGR and net profit of 10 billion yen.

• Effective cost management, especially in advertising, contributed to profit growth.

• Cloud Business saw steady customer acquisition and IT Outsourcing maintained high engineer utilization.

Financial highlights

• Gross profit margin improved to 74.0% for Q1-Q3 FY2025.3; operating profit margin rose to 21.2%.

• EBITDA grew 98.1% to 8,374 million yen; EBITDA margin reached 23.6%.

• Comprehensive income for the period was 5,763 million yen, up 132.0% year-over-year.

• EPS for the period was 30.85 yen, up from 13.66 yen in the prior year.

• Equity ratio increased to 71.1% at end of December 2024.

Outlook and guidance

• Full-year FY2025.3 guidance: net sales of 48,500 million yen (+26.3% YoY), operating profit of 9,400 million yen (+69.1% YoY), and profit attributable to owners of parent of 7,310 million yen (+74.6% YoY).

• Aims to improve profit margins and investment efficiency toward FY2026.3 targets.

• Continued investment in personnel and advertising, with flexible allocation based on cost-effectiveness.