Smaregi (4431) Q3 2025 earnings summary

Executive summary

• Consolidated financial reporting began in 3Q FY2025 following the acquisition of Netshop Supporters Co., Ltd. as a wholly owned subsidiary in December 2024.

• 3Q FY2025 saw record highs in net sales, operating profit, and annual recurring revenue (ARR), with strong YoY growth across key metrics.

• Net sales for the nine months ended January 31, 2025, reached ¥7,876 million; operating profit was ¥1,831 million; profit attributable to owners of parent totaled ¥1,237 million.

• Comprehensive income matched profit at ¥1,237 million.

• The company continues to focus on expanding its cloud-based POS and EC services, supported by ongoing M&A activity and robust recruitment.

Financial highlights

• Net sales for 3Q FY2025 reached ¥7,876 million, up 30.3% YoY; operating profit was ¥1,831 million, up 42.7% YoY.

• ARR grew 48.6% YoY to ¥8.19 billion, exceeding the FY2025 target.

• Gross profit increased 28.9% YoY to ¥4,878 million, with a gross margin of approximately 62%; SG&A expenses were ¥3,047 million.

• Equity ratio/capital adequacy ratio remained strong at 71.7%; net assets increased 29.0% YoY to ¥7,265 million.

• Basic earnings per share for the nine months was ¥64.30; diluted EPS was ¥64.20.

Outlook and guidance

• Full-year consolidated net sales forecast is ¥10,882 million, with operating profit forecast at ¥2,284 million.

• Ordinary profit for the full year is forecast at ¥2,316 million; profit attributable to owners of parent at ¥1,592 million.

• Basic earnings per share for the full year is forecast at ¥82.73.

• ARR is expected to continue strong growth, targeting ¥9.46 billion for FY2026.

• Dividend forecast for the year ending April 30, 2025, is ¥15.00 per share.