Money Forward (3994) Q2 2025 earnings summary

Executive summary

• Consolidated net sales for H1 FY11/25 rose 17% YoY to ¥23.24bn, with SaaS ARR up 28% YoY to ¥34.43bn and adjusted EBITDA at ¥1.90bn, up 76.8% YoY.

• EBITDA excluding HIRAC FUND reached a record high of ¥0.85bn; strong progress toward full-year forecasts.

• Operating loss narrowed to ¥1.59bn from ¥1.83bn YoY; net loss attributable to owners improved to ¥2.20bn from ¥2.60bn.

• Significant net increase in corporate customers (+10,969 YoY), with medium-sized company ARR up 52% YoY (organic growth: +42%).

• Strategic moves include a digital banking/BaaS preparatory company with Sumitomo Mitsui Financial Group and M&A of Cashmo, Inc.

Financial highlights

• Q2 consolidated net sales excluding HIRAC FUND rose 18% YoY; Business domain sales up 28% YoY (21% organic).

• Gross profit increased to ¥15.65bn from ¥13.39bn YoY; gross margin rate for back-office SaaS business at 87%.

• Adjusted EBITDA increased by ¥0.16bn YoY; depreciation and amortization rose due to software and M&A-related goodwill.

• Net assets rose to ¥50.61bn from ¥44.68bn at the previous fiscal year-end.

• Net cash used in operating activities improved to ¥1.85bn outflow from ¥6.68bn outflow YoY.

Outlook and guidance

• Full-year net sales forecast: ¥49.5–52.1bn (+22.6% to +29.1% YoY); SaaS ARR: ¥39.2–41.2bn (+30.6% to +37.2% YoY); adjusted EBITDA: ¥2.5–4.5bn.

• Targeting improvement of +1 to +5 percentage points in adjusted EBITDA margin vs. FY11/24.

• Operating loss forecasted between ¥4.7bn and ¥2.3bn; EPS expected negative, ¥(123.86) to ¥(80.15).

• Medium-term targets: FY11/28 net sales ¥100bn+, SaaS ARR ¥80bn+, EBITDA ¥30bn+, and long-term EBITDA margin of 40%+.

• Business domain to focus on ARR growth and margin improvement, aiming for EBITDA margin of 30%+ by FY11/28.