ASIRO (7378) Q3 2025 earnings summary

Executive summary

• Revenue for the nine months ended July 31, 2025, rose 53.0% YoY to ¥5,046 million, with operating profit up 537.1% to ¥1,179 million and net profit attributable to owners at ¥815 million, reversing a prior-year loss.

• Upward revision of full-year earnings and dividend forecasts due to strong 3Q performance and media segment growth.

• Legal media remains the main growth driver, while derivative media faces advertising challenges.

• HR segment improved profitability, turning positive, and the company divested its staffing business (Hitotas), now classified as discontinued operations.

• Launched new insurance product "bonobo" on July 1, with full-scale sales expected next fiscal year.

Financial highlights

• 3Q revenue: ¥1,702 million, up 42.4% YoY, but down 5.9% QoQ.

• 3Q operating profit: ¥329 million, up 78.0% YoY, down 26.4% QoQ.

• 3Q net income attributable to owners: ¥213 million, up 108.7% YoY, down 36.4% QoQ.

• EBITDA for the period was ¥1,282 million, up 169.4% YoY; adjusted EBITDA was ¥1,227 million, up 202.0%.

• Basic EPS for the period was ¥111.96, compared to a loss of ¥3.13 in the prior year.

Outlook and guidance

• Revised FY2025 full-year forecast: revenue ¥6,541 million, operating profit ¥1,378 million, net profit attributable to owners of ¥919 million.

• 4Q expects no major growth due to large client cancellations and one-time insurance investments.

• Dividend forecast raised, targeting a 30% payout ratio or ¥37.80 per share.

• Legal media expects a temporary 4Q revenue dip, with recovery planned next year.

• HR business anticipates continued growth above 130% next year.