SAKURA Internet (3778) Q4 2025 earnings summary

Executive summary

• Consolidated net sales rose 43.9% year-over-year to ¥31,412 million, with operating profit up 368.7% to ¥4,145 million, both record highs driven by GPU cloud services, strong cloud service growth, and group company acquisitions.

• GPU cloud services, launched in January 2024, rapidly became a major revenue pillar, responding to high demand for generative AI infrastructure.

• Aggressive investments in human resources and GPU infrastructure, along with large-scale project wins and group company expansion, fueled profit growth despite higher expenses.

• Profit attributable to owners of parent increased 350.7% to ¥2,937 million, reflecting robust business expansion.

Financial highlights

• Net sales: ¥31,412 million (up 43.9% YoY); Operating profit: ¥4,145 million (up 368.7% YoY); Ordinary profit: ¥4,060 million (up 431.4% YoY); Net profit attributable to owners: ¥2,937 million (up 350.7% YoY).

• Gross profit increased to ¥11,230 million from ¥5,735 million year-over-year.

• Annual Recurring Revenue (ARR) increased 12.9% YoY to ¥14,200 million.

• Cash and cash equivalents at year-end rose to ¥29,489 million, up 460.9% from the previous year.

• Revenue and profit exceeded revised forecasts, with net sales 1.3% and profit 39.9% above expectations.

Outlook and guidance

• FY 3/2026 net sales forecast: ¥40,400 million (up 28.6% YoY); operating profit: ¥3,800 million (down 8.3% YoY); net profit: ¥2,400 million (down 18.3% YoY).

• GPU cloud services expected to grow 149.0% YoY to ¥15,800 million; cloud services to rise 13.5% YoY to ¥15,900 million.

• Continued aggressive investment in digital infrastructure and human resources to secure government cloud certification by March 2026.