ZIGExN (3679) Q4 2025 earnings summary

Executive summary

• FY2025 revenue reached ¥25.45 billion, up 9–9.5% YoY, with EBITDA of ¥7.08 billion and operating profit of ¥5.66 billion, all at record highs and slightly exceeding revised forecasts.

• Growth was driven by strong performance in Vertical HR (notably Ties and Awesome Agent), successful PMI, and contributions from small- to mid-sized M&A, while Living Tech and Life Service faced macroeconomic headwinds.

• Shareholder returns included a record-high dividend of ¥10.5 per share, a ¥700 million share buyback cap, and the introduction of a shareholder benefit program; financial policy was revised for greater flexibility.

• Cash and cash equivalents increased by ¥1.05 billion to ¥14.3 billion at year-end.

Financial highlights

• Revenue: ¥25.45 billion (+9–9.5% YoY); EBITDA: ¥7.08 billion (+4–4.5% YoY); operating profit: ¥5.66 billion (+4.9–5% YoY); net income: ¥3.87 billion (+1.9–2% YoY); EPS: ¥38.13 (+4% YoY).

• All key metrics achieved or exceeded revised forecasts, with revenue and profit both at 101–102% of targets.

• Operating cash flow reached a record ¥7.31 billion; investing activities used ¥2.45 billion, and financing activities used ¥3.84 billion.

• Corporate client count rose 4.1% YoY to 23,177; average client spend up 5.2% YoY to ¥1.1 million.

• Goodwill-to-equity ratio at 0.5x; equity ratio at 53.2%.

Outlook and guidance

• FY2026 guidance: revenue ¥28 billion (+10% YoY), EBITDA ¥7.43 billion (+5% YoY), operating profit ¥5.88 billion (+4% YoY), net income ¥4.02 billion (+3.8–4% YoY), EPS ¥40.20 (+5% YoY).

• Dividend forecast raised to ¥11.0 per share for FY2026.

• Growth expected to be led by Vertical HR and Living Tech, with continued focus on PMI, M&A, and product improvements; profit margins projected conservatively due to business investments and non-core impacts.