Soracom (147A) Q2 2025 earnings summary

Executive summary

• Revenue for FYE March 2025 1H reached 3.67 billion yen, up 14.1% year-over-year, with double-digit growth.

• SORACOM Air connections surpassed 7 million, and paying accounts met the annual target by 1H end.

• Net sales reached ¥3,670 million, with operating profit of ¥102 million and net profit attributable to owners of parent at ¥44 million.

• No dividends declared or forecasted for the fiscal year ending March 31, 2025, indicating a focus on reinvestment and growth.

• Report covers SORACOM, INC.'s consolidated financial results for the six months ended September 30, 2024, under Japan GAAP.

Financial highlights

• Gross profit for 1H was 2,149 million yen, with SG&A expenses at 2,047 million yen.

• Operating profit (GAAP) for 1H was 102 million yen; Non-GAAP operating profit was 131 million yen.

• Recurring revenue for 1H was 3,063 million yen, representing 44.6% progress toward the annual forecast.

• Basic earnings per share: ¥0.98; diluted EPS: ¥0.91.

• Comprehensive income was negative at ¥(59) million, mainly due to foreign currency translation adjustments.

Outlook and guidance

• Full-year forecast for fiscal year ending March 31, 2025: net sales ¥9,912 million (up 25.0%), operating profit ¥925 million, ordinary profit ¥913 million, net profit ¥686 million, EPS ¥15.87.

• Revenue and operating profit are expected to be seasonally weighted toward 2H, especially from high-margin software sales.

• Both revenue and operating profit are progressing as planned for the first half.

• No revisions to previously announced forecasts.