Synchro Food (3963) Q3 2025 earnings summary

Executive summary

• Consolidated sales for the 3Q cumulative period reached ¥2,922 million, up 10.1% year-over-year, with operating profit at ¥841 million, up 10.4%, and net income attributable to shareholders at ¥556 million, up 7.1%.

• Growth was driven by strong performance in both core media platform and M&A brokerage businesses, with notable increases in user registrations and service provider participation.

• Excluding the impact of 10 large M&A deals, quarterly sales were stable, following the usual seasonal trend of 4Q-weighted revenue.

• Continued investment in human capital and efficient cost management, with a notable increase in personnel expenses and a slight decrease in advertising expense ratio.

• Key topics include the steady increase in mobility service subscriptions, expansion of property listings to non-restaurant businesses, and capital raising for growth and AI R&D.

Financial highlights

• 3Q cumulative sales: ¥2,922 million (+10.1% YoY); operating profit: ¥841 million (+10.4% YoY); operating margin: 28.8% (+0.1pt YoY).

• Net income attributable to parent/shareholders: ¥556 million (+7.1% YoY).

• Gross profit: ¥2,432 million (+9.5% YoY); SG&A expenses: ¥1,592 million (+9.0% YoY).

• Total assets increased to ¥6,033 million, net assets to ¥5,291 million, with an equity ratio of 87.7%.

• Cash and deposits increased significantly due to new share issuance.

Outlook and guidance

• Full-year sales/revenue forecast: ¥4,200 million (+16.6% YoY); operating profit: ¥1,260 million (+21.4% YoY); net income: ¥882 million (+25.3% YoY).

• 4Q is expected to be strong, maintaining the historical seasonal pattern.

• No changes to previously announced earnings guidance.

• Strategic investments in growth and AI R&D to continue, supported by recent capital raising.