Asteria (3853) Q1 2025 earnings summary

Executive summary

• Achieved significant reduction in Investment Business losses, with Q1 write-downs within expectations and full-year forecasts unchanged.

• Software Business performed well, with revenue up 11.3% year-over-year and gross profit margin maintained at 90%.

• Adjusted EBITDA for Q1 exceeded 180 million yen, reflecting strong operational performance in the Software Business.

• Operating loss narrowed significantly to 206 million yen from 2,493 million yen in Q1 FY2023, mainly due to a smaller unrealized loss in the Investment Business.

• Net loss attributable to owners of the parent improved to 105 million yen from 1,353 million yen year-over-year.

Financial highlights

• Q1 consolidated revenue reached 727 million yen, with operating profit of 123 million yen from the Software Segment.

• Consolidated quarterly loss attributable to owners was 105 million yen, mainly due to valuation losses in the Investment Segment.

• Gross profit ratio remained high at 88.3%, and recurring revenue ratio increased to 94.6%.

• Cash and cash equivalents rose to 2,524 million yen, with an equity ratio of 73%.

• Total assets increased to 7,656 million yen as of June 30, 2024, up from 7,587 million yen at March 31, 2024.

Outlook and guidance

• Full-year earnings forecasts remain unchanged, with Q1 write-downs already factored in.

• Full-year FY2025 revenue forecast is 3,200 million yen, with operating profit projected between 200–550 million yen.

• Software Business targets over 10% CAGR for ecosystem-led growth and over 50% CAGR for advanced tech and overseas growth.