Asteria (3853) Q2 2025 earnings summary

Executive summary

• Achieved robust Q2 performance with revenue for the six months ended September 30, 2024, increasing 8.3% year-over-year to ¥1,546 million, driven by strong growth in the software business and a return to profitability following the sale of the Gorilla stake.

• Upward revision of full-year operating profit forecast by 200M JPY, reflecting improved outlook.

• Subscription and recurring revenue models continue to drive stable growth.

• The design business was classified as discontinued operations following the sale of a subsidiary.

Financial highlights

• Q2 revenue reached 1,546M JPY, with a gross profit margin maintained at 90%.

• Adjusted EBITDA for the first half was 489M JPY, with an EBITDA margin of 31.6%, up 30.8% year-over-year.

• Operating profit for Q2 was 374M JPY, with an operating profit ratio of 24%.

• Net profit attributable to owners was 29M JPY, impacted by foreign exchange losses, while net loss attributable to owners of the parent improved to ¥126 million from ¥1,997 million in the prior year.

• Recurring revenue ratio exceeded 74% in Q2.

Outlook and guidance

• Full-year operating profit forecast raised to 550M JPY, with risk from Gorilla shares eliminated.

• Full-year revenue forecast revised to ¥3,200 million, with operating profit expected between ¥400–550 million.

• Medium-term plan targets sales revenue CAGR of 8–12% through FY2029 and EBITDA margin of 25%.

• Focus on expanding recurring revenue, overseas markets, and AI-compatible product development.