Money Forward (3994) Q1 2025 earnings summary

Executive summary

• Q1 FY11/25 consolidated net sales rose 23% year-over-year to ¥11.71bn, with organic growth excluding M&As.

• SaaS ARR increased 26% year-over-year to ¥32.13bn.

• Adjusted EBITDA reached a record ¥1.19bn, more than doubling year-over-year.

• Operating and net losses narrowed year-over-year, with net loss improving to ¥1.12bn.

• Launched "Money Forward AI Vision 2025" to drive AI-powered back-office transformation.

Financial highlights

• Gross profit increased to ¥8.03bn from ¥6.54bn year-over-year.

• Total assets grew to ¥108.39bn as of February 28, 2025.

• Net assets rose to ¥50.7bn; capital adequacy ratio improved to 34.3%.

• Adjusted EBITDA margin reached 10%, a record high.

• Q1 advertising expenses: ¥1.66bn, down sequentially; full-year ratio forecasted at 14.5–16.5%.

Outlook and guidance

• Full-year net sales forecasted at ¥49.5–52.1bn (+22.6–29.1% YoY); SaaS ARR expected at ¥39.18–41.16bn (+30.6–37.2% YoY).

• Adjusted EBITDA projected at ¥2.5–4.5bn, up 34.1–141.3% YoY.

• Targeting FY11/28 net sales of ¥100bn+, SaaS ARR ¥80bn+, and EBITDA ¥30bn+.

• Price revision in SMB segment from June 2025 expected to add ¥2bn to ARR.

• Guidance reflects the deconsolidation of a subsidiary as of March 31, 2025.