WDB Holdings (2475) Q3 2026 earnings summary

Executive summary

• Revenue for the nine months ended December 31, 2025, was ¥38,122 million, down 1.8% year-over-year, mainly due to a decline in the CRO segment.

• Operating profit fell 12.9% year-over-year to ¥3,554 million, with recurring profit down 10.5% and net profit flat at ¥2,259 million.

• The human resources/staffing segment saw modest growth, while the CRO segment experienced significant declines in both revenue and profit.

• Initiatives included improving staff conditions, strengthening sales, and launching the "Doco1" platform in May 2025.

Financial highlights

• Gross profit decreased by 3.2% year-over-year to ¥8,800 million, with a gross margin of 23.1%.

• Operating margin was 9.3% (down from 10.5% year-over-year), and recurring margin was 9.6% (down from 10.6%).

• Comprehensive income for the period was ¥2,492 million, down 13.2% year-over-year.

• Total assets at period-end were ¥41,584 million, with net assets of ¥33,677 million and an equity ratio of 77.5%.

• EPS for the period was ¥115.66.

Outlook and guidance

• Full-year revenue is forecast at ¥51,140 million, flat year-over-year.

• Full-year recurring profit is projected at ¥4,330 million (down 15.0%), and net profit at ¥2,410 million (down 21.0%).

• Progress rates for Q3 cumulative results are in line with historical trends for revenue, but profits are tracking higher than usual due to anticipated higher Q4 expenses.

• Annual dividend forecast is ¥62.50 per share.