Global Security Experts (4417) Q4 2025 earnings summary

Executive summary

• Achieved record high consolidated net sales of ¥8,801.6 million (+25.7% YoY) and operating income of ¥1,615.0 million (+45.1% YoY) for FYE3/2025, with growth for the 7th consecutive year, driven by strong demand for cybersecurity services and training, especially among medium-sized companies and SMEs.

• Operating income margin rose by 2.5 points YoY to 18.3%, exceeding medium-term management plan targets.

• All service lines experienced growth despite one-time expenses from headquarters relocation and increased personnel costs.

• Growth driven by strong demand in security training and personnel services, alongside stable cybersecurity business profits.

Financial highlights

• Gross profit increased by 34.5% YoY to ¥3,066 million, with gross profit margin up 2.3 points to 34.8%.

• Net income rose 28.9% YoY to ¥1,010 million; EPS increased to ¥134.48; diluted EPS at ¥134.05.

• Both number of customers and ARPU increased, reflecting robust demand for security services.

• Balance sheet: total assets grew 24.5% YoY to ¥8,141 million; equity-to-asset ratio improved to 37.8%; net assets per share ¥410.16.

• Cash and cash equivalents at period end: ¥1,380 million; operating cash flow of ¥1,019 million.

Outlook and guidance

• FYE3/2026 forecast: net sales of ¥11,000 million (+25% YoY), operating income of ¥2,200 million (+36.2% YoY), and operating income margin of 20%.

• Net income projected at ¥1,417 million (+40.3% YoY); EPS forecast at ¥188.77 (pre-split basis) and ¥94.38 (post-split).

• Ongoing strong demand for security solutions, education, and personnel expected to drive growth.