oRo (3983) Q4 2025 earnings summary

Executive summary

• Revenue increased 5.2% year-over-year to ¥8,307.9 million, driven by strong cloud solutions growth despite a challenging marketing solutions environment.

• Operating profit declined 2.6% year-over-year to ¥2,649.3 million, and profit attributable to owners fell 8.5% to ¥1,896.7 million.

• Cloud Solutions segment saw robust demand and new contract growth, offsetting declines in Marketing Solutions, which was impacted by major client ad budget cuts.

• Recurring revenue in Cloud Solutions continued to rise, driven by large-scale client demand and stable churn rates.

Financial highlights

• Gross profit increased to ¥5,456.6 million, but gross margin slightly decreased to 65.7%.

• Cash and cash equivalents at year-end were ¥10,058.0 million, up from ¥9,903.1 million.

• Equity attributable to owners was ¥10,357.2 million, with a ratio to total assets of 75.3%.

• Basic earnings per share decreased to ¥120.25 from ¥128.56 year-over-year.

• Dividend of ¥50 per share for FY2025/12, with a semi-annual dividend structure to be introduced next year.

Outlook and guidance

• FY2026/12 revenue forecast: ¥9,572 million (+15.2% YoY); operating profit: ¥2,930 million (+10.6% YoY); profit attributable to owners: ¥2,147 million (+13.2% YoY).

• Cloud Solutions expected to grow 16.6% in revenue, with ARPA and NRR improving as large-scale clients go live.

• Marketing Solutions aims for recovery under new leadership, with a focus on existing client relationships and overseas expansion.

• ROE target set at 20% or higher for the next three years.

• Annual dividend for 2026 planned at ¥50 per share, with interim and year-end dividends of ¥25 each.