Soracom (147A) Q3 2025 earnings summary

Executive summary

• Recurring revenue grew 21.2% year-over-year, reaching 4,781 million JPY for Q3 YTD.

• Total revenue increased 4.6% year-over-year to 5,705 million JPY for Q3 YTD.

• Operating profit (Non-GAAP) declined 74.0% year-over-year to 169 million JPY; GAAP operating profit fell 80.9% to 123 million JPY.

• Full-year forecast revised downward due to delayed device projects and investment losses.

Financial highlights

• Gross profit was stable at 3,285 million JPY, nearly flat year-over-year.

• SG&A expenses rose 19.3% year-over-year to 3,161 million JPY.

• Non-GAAP operating profit remained positive but decreased significantly.

• Operating profit (GAAP) for Q3 YTD was 123 million JPY, down 80.9% year-over-year.

Outlook and guidance

• Full-year revenue forecast set at 9,000 million JPY, up 13.5% year-over-year but 9.2% below initial guidance.

• Recurring revenue for the full year expected at 6,550 million JPY, up 21.7% year-over-year.

• Incremental revenue expected to recover in Q4, reaching 1.5 billion JPY.

• Some recurring revenue will be carried over to the next fiscal year due to project delays.