DIGITAL GRID (350A) Q4 2025 earnings summary

Executive summary

• Net sales for FYE25/7 reached JPY 6,153 million, with operating profit of JPY 2,742 million and profit attributable to owners of parent of JPY 1,870 million; both net sales and operating profit rose over 75% YoY, exceeding initial plans.

• Core DGP business saw contracted capacity grow 29.4% YoY, with DGP fees up 70.0% YoY, driven by summer demand and higher transaction volume.

• Listed on the Tokyo Stock Exchange Growth Section in April 2025.

• First year of consolidated financial statements; no year-on-year comparisons provided in some disclosures.

Financial highlights

• Net sales: JPY 6,153 million (+75.0% YoY); Operating profit: JPY 2,742 million (+77.3% YoY); Profit attributable to owners: JPY 1,870 million.

• DGP fees: JPY 4,791 million (+70.0% YoY); Contracted capacity: 1,034 MW (+29.4% YoY).

• Gross profit: JPY 4,580 million (+69.3% YoY); Gross margin: 74.4%.

• EPS: JPY 308.73 (+88.3% YoY); diluted EPS: JPY 248.26 (reflecting a 10-for-1 stock split).

• Recurring DGP platform fees comprise about 80% of total net sales.

Outlook and guidance

• FYE26/7 plan: Net sales JPY 6,281 million (+2.1% YoY); Operating profit JPY 2,447 million (-13.8% YoY); profit attributable to owners JPY 1,476 million (-21.0% YoY); EPS JPY 38.11 (reflecting a 6-for-1 stock split).

• Transaction volume projected to rise 20.6% YoY, but flat unit prices and increased headcount for new businesses will compress margins.

• No dividends planned for the current or next fiscal year.

• Medium-term plan targets ROE >20%, operating margin >40%, and 30%+ CAGR in GMV by FYE28/7.