VRAIN Solution (135A) Q3 2025 earnings summary

Executive summary

• Achieved 14.0% year-over-year revenue growth in 3Q, driven by AI system and DX consulting adoption in manufacturing.

• Operating profit declined 51.7% year-over-year to ¥185 million, with net profit down 51.3% to ¥123 million, reflecting higher SG&A, increased cost of sales, and one-time accounting changes.

• Expanded customer base to 215 companies, with 18 new clients in 3Q and strong repeat business (54.8% of sales).

• Strengthened organizational foundation with aggressive hiring, new office openings in Osaka and Nagoya, and ongoing investment in sales force and infrastructure.

Financial highlights

• 3Q cumulative revenue: ¥1,200 million (+14.0% YoY); gross profit: ¥925 million (+11.2% YoY); gross profit for the period rose to ¥275 million from ¥221 million YoY.

• 3Q operating profit: ¥185 million (-51.7% YoY); net profit: ¥123 million (-51.3% YoY); EPS: ¥12.21, down from ¥25.60 YoY.

• Gross margin improved to 77.1% in 3Q, up 5.4% from 1Q; operating margin at 15.5%.

• Total assets decreased to ¥1,309 million from ¥1,449 million at the previous fiscal year-end, mainly due to lower cash and deposits.

• Order backlog at quarter-end: ¥450 million; at period-end: ¥459 million; orders at announcement date: ¥660 million.

Outlook and guidance

• Full-year revenue forecast maintained at ¥2,115 million; operating profit forecast at ¥771 million; net profit forecast at ¥534 million.

• 4Q sales expected to be strong, with large orders scheduled for delivery; any delays in customer acceptance may shift revenue to next fiscal year.

• No revision to previously announced guidance; actual results may differ due to external factors.

• Strategic focus on expanding multi-line and multi-factory deployments, and cross-selling services.