WDB Holdings (2475) Q3 2025 earnings summary

Executive summary

• Consolidated revenue for the nine months ended December 2024 increased by 4.2% year-over-year, driven by growth in both staffing and CRO businesses.

• Operating profit declined 3.9% year-over-year to ¥4,081 million, and net profit attributable to shareholders fell 13.3% to ¥2,256 million, mainly due to higher personnel costs and increased SG&A expenses.

• The company continues to focus on raising staff compensation and enhancing digital platforms for service delivery and productivity improvements.

• Cost reduction initiatives and negotiations for higher dispatch fees are ongoing to support further staff compensation improvements.

Financial highlights

• Q3 consolidated revenue: ¥388.3 billion (+4.2% YoY); gross profit: ¥90.9 billion (+0.4% YoY); operating profit: ¥40.8 billion (-3.9% YoY); ordinary profit: ¥41.0 billion (-3.9% YoY).

• Net profit: ¥22.5 billion (-13.3% YoY); gross margin: 23.4%; operating margin: 10.5%.

• CRO segment revenue grew 15.7% YoY; staffing segment revenue grew 2.3% YoY.

• Total assets increased to ¥40,548 million, and net assets rose to ¥32,259 million as of December 31, 2024.

Outlook and guidance

• Full-year revenue forecast: ¥518.0 billion (+5.1% YoY); net profit forecast: ¥29.7 billion (-16.3% YoY); operating income projected to decline 13.1% to ¥4,750 million.

• No changes have been made to previously announced earnings or dividend forecasts.

• Progress rates for revenue, ordinary profit, and net profit are in line with or above historical averages.

• Dividend payout ratio target remains at 40%, but a temporary dividend reduction is planned due to lower earnings.