Simplex (4373) Q3 2025 earnings summary

Executive summary

• Revenue for the nine months ended December 31, 2024, reached ¥34.1bn (+13.9% YoY), marking record highs for Q3 and the period overall.

• Operating profit rose 9.7% YoY to ¥7.0bn, with profit attributable to owners of parent up 10.3% to ¥4.68bn.

• Growth was driven by robust sales in System Integration, Operation Service, and significant gains in Strategy/DX Consulting.

• A major insurance system integration project was canceled, resulting in a revenue reversal and impacting H1 results.

• Engineering resources were reallocated from R&D to client projects, supporting Q3 recovery.

Financial highlights

• 9M gross profit was ¥13.89bn (+7.0% YoY), with a gross profit margin of 40.7% (-2.6pt YoY).

• SG&A expenses for 9M were ¥5.59bn (+14.1% YoY); R&D expenses decreased 9.8% YoY to ¥1.22bn.

• Basic EPS rose to 80.26 yen from 73.86 yen YoY.

• Cash and cash equivalents increased to ¥16.19bn, up ¥1.94bn YoY.

• Total assets stood at ¥79.25bn, with total equity at ¥50.02bn and an equity ratio of 63.1%.

Outlook and guidance

• Full-year revenue forecast revised up to ¥46.8bn (up 15.0% YoY); operating profit forecast remains ¥10.6bn.

• Profit attributable to owners of parent is forecast at ¥7.28bn (up 17.5%), with basic EPS expected at 123.97 yen.

• H2 operating profit forecast revised to ¥6.6bn (from ¥5.8bn).

• Over 95% of full-year revenue forecast already secured by Q3-end through actual revenue and outstanding project orders.

• All business areas progressing steadily toward revised forecasts; new FY3/27 targets to be announced with full-year results.