Net Protections (7383) Q3 2025 earnings summary

Executive summary

• Achieved full-year operating profit guidance early, with nine-month operating profit of JPY1.77bn, reversing a prior-year loss, due to cost control and reduced SG&A expenses.

• Group GMV for nine months ended Dec 31, 2024, was JPY478.2bn, up 12.8% year-over-year, driven by strong BtoB and BtoC growth.

• Profit attributable to owners of parent was JPY1.01bn, compared to a loss of JPY0.44bn in the same period last year.

• Upward revision of full-year forecast: operating profit raised by JPY0.3bn to JPY2.0bn, EBITDA forecast increased to JPY3.6bn.

• EBITDA (non-GAAP) surged 319.0% year-over-year to JPY2.99bn.

Financial highlights

• Total operating revenue for nine months rose 9.5% year-over-year to JPY17.28bn; gross profit up 33.4% to JPY7.84bn.

• SG&A expenses decreased 3.1% year-over-year; marketing expenses down 23.7% year-over-year.

• Cash and cash equivalents increased to JPY14.1bn as of Dec 31, 2024, from JPY10.8bn at March 31, 2024.

• Total assets increased 18.8% from March 31, 2024 to JPY71.63bn, with equity up 5.9% to JPY18.83bn.

• Basic EPS for nine months was JPY10.41, compared to a loss of JPY4.55 per share in the prior year.

Outlook and guidance

• Full-year operating profit forecast revised upward to JPY2.0bn (+17.6% vs previous forecast); EBITDA to JPY3.6bn.

• GMV guidance maintained at JPY635.3bn; gross profit forecast slightly increased.

• Operating profit expected to peak in Q3 due to seasonality and increased Q4 marketing investment.

• For FY ending March 31, 2025, operating revenue is forecast at JPY23.28bn (+11.7% YoY), profit attributable to owners at JPY1.1bn, and basic EPS at JPY11.31.

• Medium-term plan targets GMV CAGR of 12–15% and operating profit of at least JPY2bn by FY3/27.