ZIGExN (3679) Q3 2025 earnings summary

Executive summary

• Q3 FY2025/3 revenue rose 10% year-over-year to 18,537 million yen, with EBITDA up 7% and net income up 1%, but both revenue and profit are projected to fall short of the initial plan, prompting a downward revision of the full-year forecast.

• Gross profit increased 8.3% year-over-year to 15,188 million yen; operating income was 4,118 million yen, up 7% YoY.

• The business is driven by the Life Service Platform, with steady demand in HR, real estate, and life support segments.

• The company continues to focus on building its flagship "Z CORE" business, strengthening products, pursuing M&A, and enhancing customer value.

• Shareholder returns are being enhanced with a new benefit program and a planned dividend increase to 7.5 yen per share.

Financial highlights

• Q3 revenue: 18,537M yen (+10% YoY); EBITDA: 5,143M yen (+7% YoY); operating income: 4,118M yen (+7% YoY); net income: 2,800M yen (+1% YoY); EPS: 27.47 yen (+3% YoY).

• Q3 progress rates against revised full-year forecast: revenue 74%, EBITDA 73%, operating income 74%, net income 73%.

• Total assets: 34,447M yen; equity: 18,881M yen as of Dec 31, 2024.

• Cash and cash equivalents at period end: 11,820M yen, down 1,422M yen from previous year-end.

• Quarterly revenue reached a record high, but profit indicators were flat due to temporary expenses, including 30M yen in expert fees for an unexecuted overseas M&A.

Outlook and guidance

• Full-year revenue forecast revised down to 25,000M yen (from 27,500M yen), net income to 3,820M yen (from 4,300M yen), and EPS to 37.62 yen (from 41.90 yen).

• EBITDA forecast at 7,000M yen; forecast revision reflects recent business trends and acquisition impacts.

• Year-on-year revenue and profit growth are still expected, but both will fall below the initial plan due to macroeconomic impacts and one-time expenses.

• FY2026/3 is expected to see continued revenue and profit growth, with business plans and medium-term targets to be announced with full-year results.