ZIGExN (3679) Q4 2025 earnings summary

Executive summary

• FY2025/3 revenue reached 25,450 million yen, up 9.5% year-over-year, with EBITDA and operating income also hitting record highs; net income attributable to owners rose 1.9% to 3,872 million yen, and results met revised forecasts despite earlier downward revisions.

• Growth was driven by strong performance in Vertical HR (notably Ties), successful PMI, and contributions from small- to medium-sized M&A, while Living Tech and Life Service faced macroeconomic headwinds; core business segments showed steady user-side demand, though some client-side ad demand slowed.

• Shareholder returns included a record dividend of 10.5 yen per share, a 700 million yen share buyback, and the introduction of a shareholder benefit plan; cash and cash equivalents increased by 1,054 million yen to 14,295 million yen at year-end.

Financial highlights

• Revenue: 25,450 million yen (+9.5% YoY); EBITDA: 7,084 million yen (+4.5% YoY); Operating income: 5,657 million yen (+4.9% YoY); Net income: 3,872 million yen (+1.9% YoY); EPS: 38.13 yen (+4% YoY).

• All key metrics achieved or exceeded revised forecasts, with revenue and profit both at 101–102% of targets.

• Gross profit increased 8.2% to 20,905 million yen; comprehensive income rose to 3,881 million yen.

• Cash flow from operations reached 7,331 million yen, a record high; cash flow from investing was -2,449 million yen, and from financing -3,838 million yen.

• Number of corporate clients grew to 23,177 (+4.1% YoY), and unit price per client rose to 1.10 million yen (+5.2% YoY).

Outlook and guidance

• FY2026/3 forecast: revenue 28,000 million yen (+10% YoY), EBITDA 7,430 million yen (+5% YoY), operating income 5,880 million yen (+4% YoY), net income 4,020 million yen (+4% YoY), EPS 40.20 yen (+5% YoY).

• Growth expected to be led by Vertical HR and Living Tech, with continued focus on PMI, M&A, and product improvements; profit margins projected conservatively due to business investments and non-core impacts.

• Dividend forecast raised to 11.0 yen per share for FY3/2026.