Soracom (147A) Q4 2025 earnings summary

Executive summary

• Soracom operates a global IoT platform with device connectivity and cloud integration in 186 countries and 431 carrier partners.

• The company focuses on democratizing IoT technology and accelerating innovation through a self-service growth model.

• Use cases span smart metering, healthcare, manufacturing, energy, logistics, and retail, serving domestic and international clients.

• Revenue for FY ended March 31, 2025 rose 13.4% year-over-year to ¥8,993 million, with recurring revenue up 21.9% to ¥6,562 million.

• Operating profit declined 9.7% year-over-year to ¥656 million, and net income attributable to owners of parent fell 27.4% to ¥353 million.

Financial highlights

• FY ended March 2025 revenue reached 8.9 billion JPY, with six consecutive years of positive operating profit.

• Global revenue ratio stands at 41.8%, reflecting strong international business.

• 7 million IoT connections as of March 2025, with an annual churn rate of 0.4%.

• Net retention rate (NRR) was 117% from FY3/24 to FY3/25, indicating robust recurring revenue growth.

• Gross profit increased 12.0% year-over-year to ¥5,033 million, but operating margin declined to 7.3% from 9.2%.

Outlook and guidance

• FY2026 revenue forecast is ¥10,800–11,800 million (up 20.1–31.2% year-over-year).

• EBITDA expected at ¥1,060–1,210 million (up 27.1–45.1% year-over-year).

• Positioned to capture a share of the $1.1 trillion global IoT market projected for 2026, focusing on software, services, and connectivity.

• Growth strategy leverages incremental and recurring revenue from global expansions and new service versions.

• Net income attributable to owners of parent projected at ¥420–720 million.