ASIRO (7378) Q2 2025 earnings summary

Executive summary

• Revenue and operating profit for FY2025 2Q and the first half reached record highs, significantly exceeding initial forecasts, with strong performance across all business segments, especially legal media.

• Net income attributable to owners was ¥602.9 million for the first half, compared to a loss of ¥124.5 million in the previous year.

• The company set new ambitious targets and issued a fifth round of stock options to management, aiming for ¥20 billion in revenue and ¥4 billion in operating profit by FY2030/31.

• The HR business's dispatch segment (Hitotas) was divested at 2Q-end, now treated as a discontinued operation and excluded from current and prior period results.

Financial highlights

• FY2025 2Q revenue was ¥1,809 million, up 58.4% year-over-year and 17.8% sequentially from 1Q; first half revenue was ¥3,343.9 million, up 59.0% year-over-year.

• Operating profit reached ¥446 million for 2Q (up 446.3% YoY), and ¥850.9 million for the first half, a significant turnaround from the prior year.

• Net profit attributable to owners was ¥334 million for 2Q and ¥602.9 million for the first half, up from a loss last year.

• EBITDA for the first half was ¥923.3 million, up 252.4% year-over-year; adjusted EBITDA was ¥880.9 million, up 303.8%.

• Basic EPS for the half was ¥82.81, compared to a loss of ¥17.21 per share last year.

Outlook and guidance

• As of 2Q, progress toward full-year targets exceeded 50% for revenue, operating profit, and net profit.

• Full-year revenue is forecast at ¥6,326 million (+31.8% YoY), with operating profit of ¥1,265 million (+285.0%) and net income of ¥820 million (+540.3%).

• No upward revision to guidance yet, as insurance business performance could still impact results.

• The company is shifting to an AI-centric business strategy, with new AI-driven products and services planned for launch within the year.