Soracom (147A) Q2 2025 earnings summary

Executive summary

• Revenue reached 3.67 billion yen for 1H FYE March 2025, up 14.1% year-over-year, maintaining double-digit growth.

• Operating profit was 102 million yen (GAAP), with net profit attributable to owners of parent at 44 million yen.

• Number of paying accounts hit 8.6K, already meeting the annual target.

• Over 7 million connections for "SORACOM Air" achieved.

• No dividends declared or forecasted for the fiscal year ending March 31, 2025.

Financial highlights

• Recurring revenue was 3.06 billion yen, up 20% year-over-year, representing 83.5% of total revenue.

• Gross profit increased 9% to 2.15 billion yen, with a gross margin of 58.6%.

• SG&A expenses rose 18.3% to 2.05 billion yen, reflecting investments in R&D and listing costs.

• Cash and cash equivalents at end of 1H stood at 8.56 billion yen.

• Comprehensive income was negative at ¥(59) million, mainly due to foreign currency translation adjustments.

Outlook and guidance

• Full-year revenue forecast is 9.91 billion yen (+25.0% YoY), with recurring revenue expected to grow 27.7%.

• Operating profit projected at 925 million yen (GAAP, +27.2% YoY), with a margin of 9.3%.

• Non-GAAP operating profit forecasted at 1.03 billion yen (10.4% margin).

• Net profit forecasted at 686 million yen, EPS at 15.87 yen.

• No revisions to previously announced forecasts.