Global Security Experts (4417) Q3 2025 earnings summary

Executive summary

• Achieved record highs in net sales and operating income for Q3 and the first nine months, with significant year-over-year growth in both sales and profits.

• Net sales for the nine months ended December 31, 2024, reached ¥6,289 million, with all services experiencing growth amid strong cybersecurity demand and increased digitalization among Japanese companies.

• Operating income was ¥1,167 million, supported by revenue growth despite one-time headquarters relocation costs and higher personnel expenses.

• Transitioned to consolidated accounting from FYE3/2025, including the spin-off of the security personnel SES business into CyberSTAR and equity-method affiliates BBSec and SIV.

• Business growth was driven by targeted strategies for each customer segment, including semi-large and medium-sized companies, IT companies, and those requiring security personnel.

Financial highlights

• Net sales for the first nine months: ¥6,289 million, up 25.0% year-over-year.

• Operating income: ¥1,167 million, up 36.4% year-over-year; operating income margin rose to 18.6%.

• Net income: ¥716 million, up 27.1% year-over-year; EPS increased to ¥95.33.

• Gross profit for the period was ¥2,217 million on net sales of ¥6,289 million; gross profit margin improved to 35.3%, up 1.8 points year-over-year.

• Comprehensive income reached ¥913 million, including ¥197 million in valuation gains on securities.

Outlook and guidance

• Full-year forecast for FYE3/2025: net sales of ¥8,800 million (+25.7% YoY), operating income of ¥1,584 million (+42.3% YoY), and net income of ¥1,039 million (+32.6% YoY); EPS forecast at ¥138.33.

• Dividend forecast for FY2025 is ¥41.71 per share.

• Progress rates for net sales and operating income are on track, despite one-time headquarter relocation expenses.

• All business segments expected to see year-over-year revenue growth.