System D (3804) Q2 2025 earnings summary

Executive summary

• Revenue rose 17.3% year-over-year to ¥2,798 million for the interim period, exceeding both initial plans and prior year, driven by strong demand in educational, public sector, and cloud solutions, with early project deliveries contributing.

• Operating profit increased 27.2% year-over-year to ¥652 million, with net income up 30.3% to ¥446 million.

• Major system deliveries and new user acquisitions in education and public sectors, with notable expansion in cloud-based offerings.

Financial highlights

• Revenue: ¥2,798 million, up 17.3% year-over-year and 6.4% above plan.

• Operating profit: ¥652 million, up 27.2% year-over-year and 24.0% above plan; ordinary profit: ¥654 million, up 27.6%.

• Net income: ¥446 million, up 30.3% year-over-year and 23.3% above plan.

• Gross profit: ¥1,242 million, up 15.7% year-over-year.

• Comprehensive income increased 34.8% year-over-year to ¥462 million.

Outlook and guidance

• Full-year revenue target set at ¥5,024 million, aiming to surpass the ¥5 billion mark, with operating profit forecast at ¥932 million and net profit at ¥627 million.

• Projected operating margin of 18.6%.

• Annual dividend forecast raised to ¥27 per share.

• Focus on strengthening recurring revenue and expanding user base through aggressive sales.