Synchro Food (3963) Q4 2025 earnings summary

Executive summary

• Achieved record-high full-year revenue of ¥3,951 million (+9.7% YoY) and operating profit of ¥1,097 million (+5.7% YoY), but net income attributable to shareholders declined 6.4% to ¥659 million due to impairment losses.

• Media platform business maintained strong sales, especially in job advertising, but segment profit declined; M&A brokerage hit record segment revenue and profit, turning profitable with a 66.1% revenue surge.

• Strategic investments in human capital and advertising continued, with efficient cost management.

• User base for core services grew, but paid user count declined due to fewer kitchen equipment buyers.

• Impairment losses of ¥162 million were recorded for two acquired businesses.

Financial highlights

• Revenue: ¥3,951 million (+9.7% YoY); Operating profit: ¥1,097 million (+5.7% YoY); Operating margin: 27.8% (-1.0pt YoY); Ordinary profit: ¥1,086 million (+4.8% YoY).

• Net income attributable to shareholders: ¥659 million (-6.4% YoY), impacted by impairment losses.

• Gross profit: ¥3,239 million (+7.2% YoY), gross margin 82.0%; SG&A expenses: ¥2,142 million (+8.0% YoY).

• Cash and equivalents at year-end: ¥4,948 million, up ¥803 million YoY.

• Equity ratio improved to 86.9% from 84.6% YoY; EPS was ¥24.01, down from ¥26.36.

Outlook and guidance

• FY2026 revenue target set at ¥4,100 million (+3.8% YoY), with operating and ordinary profit forecast to decrease to ¥820 million (-25.3% YoY); net income forecasted at ¥574 million (-12.9% YoY), EPS ¥20.16.

• Next mid-term plan focuses on AI, business expansion, and strengthening the business portfolio.

• Long-term target for FY2030: revenue ¥10,000 million, operating profit ¥3,000 million.