ELEMENTS (5246) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of ¥3,895 million for FY25, up 53% year-over-year, driven by Polarify consolidation, core AI cloud, and authentication services expansion.

• EBITDA reached ¥270 million, down 21% year-over-year, with adjusted EBITDA (excluding M&A costs) at ¥379 million, surpassing the previous year.

• Operating loss widened to ¥215 million due to increased SG&A and one-time costs, with net loss attributable to parent/shareholders at ¥700–701 million, impacted by special losses from Admedica dissolution.

• The company expanded its market share in online identity verification, especially after acquiring Polarify as a subsidiary.

• Polarify's PMI progressed well, achieving monthly operating profit in October and significant cost reductions.

Financial highlights

• Q4 revenue hit a record ¥1,173 million, up 70% year-over-year.

• Q4 EBITDA was ¥51 million, nearly flat year-over-year; adjusted EBITDA was ¥62 million.

• Q4 operating loss was ¥78 million; adjusted operating loss was ¥41 million.

• Gross profit for FY25 was ¥3,018 million (+38% YoY), with gross margin at 77.5% (down 8.3pt YoY due to Polarify consolidation).

• SG&A for FY25 rose 52% to ¥3,233 million, with a sales-to-SG&A ratio of 83.0%.

Outlook and guidance

• FY26 revenue forecast: ¥5,100–5,300 million (+30–36% YoY).

• FY26 EBITDA forecast: ¥800–1,000 million (+195–269% YoY).

• FY26 operating profit expected to return to black (¥0–200 million); net profit forecast: ¥(100)–100 million.

• FY27 mid-term targets: revenue ¥6–6.5 billion, operating margin 15%, EBITDA margin 25%.