U-NEXT HOLDINGS (9418) Q3 2025 earnings summary

Executive summary

• Achieved record-high sales and earnings for the first three quarters, with Content Distribution and Store & Facility Solutions leading performance; net sales for the nine months ended May 31, 2025, rose 20.3% year-over-year to ¥283,438 million, operating profit up 2.9% to ¥24,206 million, and profit attributable to owners of parent up 4.3% to ¥13,567 million.

• Store & Facility Solutions and Financial, Realty & Global segments are ahead of pace to achieve full-year forecasts; other segments are generally in line.

• The company reorganized its business segments, now reporting under Content Distribution, Store & Facility Solution, Communication & Energy, and Financial, Realty & Global Business.

• No change in FY2025 forecast due to expected 4Q demand downturn in Store & Facility Solutions and potential lower profitability in the energy business.

Financial highlights

• Net sales for 3Q FY2025 reached ¥283.4bn, up 20% year-over-year; operating income rose 3% to ¥24.2bn; EBITDA for the period was ¥32.6bn (+5% YoY); EBITDA-CAPEX was ¥10.7bn, down 11% YoY due to increased investments.

• Net income attributable to owners was ¥13.6bn (+4% YoY); adjusted net income was ¥16.0bn (+4% YoY); comprehensive income reached ¥14,415 million, up 5.7% YoY.

• Basic EPS was ¥75.22, adjusted EPS ¥88.90, both reflecting a 3-for-1 stock split; EPS (LTM) at ¥104.6, nearly unchanged YoY.

• All-time high sales, operating income, and EBITDA for the first three quarters.

• Total assets as of May 31, 2025, were ¥252,717 million, with net assets at ¥103,744 million and an equity ratio of 36.7%.

Outlook and guidance

• FY2025 forecast remains unchanged, anticipating a larger-than-expected 4Q downturn in Store & Facility Solutions and possible lower energy business profitability.

• Full-year forecast for FY2025 projects net sales of ¥360,000 million (up 10.2%), operating profit of ¥31,000 million (up 6.5%), and profit attributable to owners of parent of ¥16,700 million (up 8.7%).

• Full-year EBITDA is forecast at ¥42,500 million (up 8.1%), with adjusted EPS of ¥110.05.

• Dividend forecast for FY2025 is ¥14.00 per share, post stock split.

• Content Distribution expects a YoY subscriber increase of 300,000; stable marketing expenses and improved profitability despite higher system and personnel costs.