VRAIN Solution (135A) Q2 2025 earnings summary

Executive summary

• Focused on supporting automation and digital transformation for clients in the manufacturing sector through AI and IoT-based systems and DX consulting, with active investment in talent and sales infrastructure for future growth.

• Achieved record-high quarterly revenue, but operating profit declined due to increased cost of sales and investments in personnel.

• Expanded customer base to 197 client companies, especially in food, machinery, chemical, pharmaceutical, and materials industries.

• Opened Osaka sales office to strengthen sales and meet increased customer demand for on-site visits.

• Cumulative order backlog at period end was ¥376.5 million.

Financial highlights

• Revenue for the six months ended August 31, 2024, was ¥808.9 million, up 13.7% year-over-year.

• Gross profit: ¥614 million, up 8.1%; operating profit: ¥189.9 million, down 34.2%; ordinary income: ¥189.8 million.

• Net income for the period was ¥126.2 million, down 33.7% year-over-year.

• Backlog: ¥370 million, up 23.5% from previous fiscal year-end.

• EPS for the period was ¥12.48.

Outlook and guidance

• Full-year revenue forecast: ¥2,115 million; operating profit forecast: ¥771 million; net income projected at ¥534 million and EPS at ¥52.91.

• 2Q sales progress at about 40% of full-year plan, with significant sales increase expected in the second half.

• Plans to leverage past implementation cases for multi-line deployments in the second half.

• No change to previously announced guidance; actual results may differ due to various factors.