WingArc1st (4432) Q2 2025 earnings summary

Executive summary

• Revenue for FY2025 Q2 rose 10.2% year-over-year to ¥14,875 million, with EBITDA up 6.2% and profit attributable to equity holders up 6.0%, driven by strong BDS and cloud services.

• Operating profit increased 5.2% to ¥4,964 million, and total comprehensive income was ¥3,680 million, nearly flat year-over-year.

• BDS segment led growth, supported by SVF licenses, cloud services, and new product launches.

• Announced the launch of invoiceAgent Enterprise Cloud and expanded public sector offerings with Govlong.

Financial highlights

• Revenue reached ¥14,875 million (up 10.2%), EBITDA was ¥5,667 million (up 6.2%), and profit attributable to equity holders was ¥3,597 million (up 6.0%).

• Operating income was ¥4,964 million with a margin of 33.4% (down 1.6pt year-over-year); EBITDA margin was 38.1% (down 1.4pt).

• Recurring revenue ratio increased to 57.4%, and maintenance retention rate was 92.3%.

• Cloud services revenue grew 28.3% year-over-year, with invoiceAgent Cloud up 70.9% and Dr.Sum Cloud up 52.6%.

• Cash and cash equivalents at period-end were ¥13,575 million, up from ¥12,986 million at the previous year-end.

Outlook and guidance

• Full-year revenue forecast is ¥27,600 million, operating income at ¥8,000 million, EBITDA at ¥9,470 million, and profit at ¥5,800 million.

• Progress rates for revenue and profit metrics are above 53% at Q2, indicating strong performance toward annual targets.

• Annual dividend forecast is ¥84.00 per share, up from ¥78.70 in the previous year.