Visional (4194) Q2 2025 earnings summary

Executive summary

• Net sales for FY2025/7 2Q YTD reached JPY 36.93Bn, up 17.5% YoY, with operating profit at JPY 10.22Bn (+4.4% YoY) and profit attributable to owners of parent at JPY 7.55Bn (+4.7% YoY), maintaining strong margins while investing in growth.

• BizReach, the core business, saw 2Q YTD net sales of JPY 32.12Bn (+16.8% YoY) and operating profit of JPY 13.23Bn (+8.5% YoY), driven by robust hiring demand.

• HRMOS achieved 2Q YTD net sales of JPY 2.38Bn (+36.6% YoY) but continued to post operating losses as investments in new services and marketing increased.

• Incubation segment returned to YoY growth in 2Q after a prior decline due to the BizHint share transfer, with ongoing investments in workforce and office expansion.

• The Japanese economy showed gradual recovery, but global economic uncertainties and risks remain.

Financial highlights

• 2Q net sales were JPY 18.23Bn (+18.6% YoY); operating profit was JPY 4.77Bn (-1.3% YoY), reflecting planned growth investments.

• Gross profit margin remained high at 91.0% for 2Q YTD; operating profit margin was 27.7%.

• Cash and deposits at 2Q end were JPY 60.61Bn, with total assets of JPY 81.84Bn and net assets of JPY 59.02Bn.

• Net cash provided by operating activities was JPY 6.21Bn, with cash and cash equivalents at period-end of JPY 60.61Bn.

• Basic earnings per share rose to JPY 190.21 from JPY 184.25 year-on-year.

Outlook and guidance

• FY2025/7 consolidated net sales forecast remains unchanged at JPY 76.40Bn (+15.5% YoY), with operating profit forecast at JPY 19.15Bn (+7.4% YoY, 25.1% margin).

• Profit attributable to owners of parent forecast at JPY 13.47Bn (+3.7% YoY), and basic EPS at JPY 339.79.

• BizReach net sales forecast is JPY 66.44Bn (+15.0% YoY) with a 40% operating profit margin; HRMOS net sales forecast is JPY 5.0Bn (+30.1% YoY).

• HRMOS is expected to become profitable in FY2026/7, with continued strategic investments in FY2025/7 2H.

• No change to previously issued financial results forecast.