SAKURA Internet (3778) Q2 2025 earnings summary

Executive summary

• Achieved record-high sales and profits in Q2 FY 3/2025, with net sales up 28.3% year-over-year to ¥13,271 million, driven by strong cloud and GPU cloud service sales.

• Operating profit surged 419.4% year-over-year to ¥1,295 million, reflecting higher sales and continued investment in cloud service development and marketing.

• Ordinary profit increased 538.2% year-over-year to ¥1,102 million, despite share issuance costs.

• Profit attributable to owners of parent grew 305.4% year-over-year to ¥710 million.

• Monetized approximately 2,000 GPU cloud services, contributing significantly to first-half results.

Financial highlights

• Net sales: ¥13,271 million (+28.3% YoY); Operating profit: ¥1,295 million (+419.4% YoY); Ordinary profit: ¥1,102 million (+538.2% YoY); Profit attributable to owners: ¥710 million (+305.4% YoY).

• Gross profit margin improved to 32.8% from 25.5% YoY; gross profit reached ¥4,349 million, up from ¥2,639 million YoY.

• Annual Recurring Revenue (ARR) reached ¥13,363 million, up 9.3% YoY.

• EBITDA for Q2 FY 3/25 was ¥2,212 million.

• Net income per share was ¥18.64, up from ¥4.91 in the prior year period.

Outlook and guidance

• Full-year forecast: net sales of ¥29,000 million (+32.9% YoY), operating profit of ¥2,600 million (+193.9% YoY), and profit attributable to owners of parent of ¥1,550 million (+137.8% YoY).

• Additional investments in GPU infrastructure totaling ¥15.49 billion planned ahead of schedule to address strong AI development demand.

• The impact of these investments on earnings forecasts is under examination.

• Year-end dividend forecast raised to ¥4.00 per share, up ¥0.50 from the previous year.