Visional (4194): FY2025 Results Summary — Net Sales Up 21.2% on BizReach Strength, 23.7% Growth Guided

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Visional’s fiscal year ends on July 31, and the company labels the fiscal year ended July 31, 2025 as “FY2025/7” in its materials; figures below follow the presentation’s labels.

Visional, Inc. (4194) reported consolidated net sales of JPY 80.16Bn for FY2025/7, up 21.2% year on year, with operating profit of JPY 21.44Bn (20.2% YoY growth, 26.7% margin). The company describes the result as a balanced execution of growth investments and cost control, with the BizReach business capturing a strong market environment as direct employers’ hiring demand for professionals and job seekers’ behavior continued to trend strongly. For FY2026/7, Visional guides consolidated net sales of JPY 99.20Bn (23.7% YoY growth), an expansion in growth rate versus FY2025/7.

Consolidated Results (Full-Year Actual)

Full-year net sales came in at JPY 80,161MM, up 21.2% year on year, with fourth-quarter net sales of JPY 21,312MM growing 23.8% YoY. EBITDA was JPY 23,196MM (28.9% margin) and operating profit was JPY 21,442MM (26.7% margin). Profit attributable to owners of parent rose 22.8% to JPY 15,950MM (19.9% margin). Actual results exceeded the forecast announced in June 2025: net sales beat the JPY 79,500MM forecast by JPY 661MM (a +0.8% difference), and operating profit beat the JPY 20,300MM forecast by JPY 1,142MM (a +5.6% difference), which the company attributes to higher net sales and disciplined cost control.

Item (JPY MM)	FY2025/7	FY2024/7	YoY
Net Sales	80,161	66,146	+21.2%
Gross Profit	72,899	60,428	—
EBITDA	23,196	19,061	+21.7%
Operating Profit	21,442	17,837	+20.2%
Pre-tax Profit	22,700	18,928	—
Profit attributable to owners of parent	15,950	12,990	+22.8%

Segment and Business Results

HR Tech Segment net sales grew 20.6% to JPY 76,962MM with segment operating profit of JPY 24,739MM, while the Incubation Segment grew 41.4% to JPY 3,139MM with an operating loss of JPY 1,691MM as investments in people and outsourcing to build new businesses continued. Within HR Tech, the BizReach business recorded full-year net sales of JPY 68,610MM (18.8% YoY growth) and operating profit before corporate expense allocation of JPY 28,408MM (21.8% YoY growth, 41.4% margin), with the margin exceeding plan due to strong net sales growth in 3Q. The HRMOS business grew net sales 35.6% to JPY 5,212MM; its full-year operating loss (before corporate expense allocation) landed at JPY 0.76Bn, smaller than the planned JPY 0.85Bn, while marketing investments for “Internal BizReach by HRMOS,” launched at the end of January 2025, were executed as planned in 4Q. HRMOS ARR reached JPY 3.73Bn in 4Q (34.4% YoY growth), with 2,421 unique paying customers (+24.3% YoY) and ARPU of JPY 128 thousand (+8.1% YoY).

Segment (JPY MM)	Metric	FY2025/7	FY2024/7
HR Tech Segment	Net Sales	76,962	63,791
HR Tech Segment	Operating Profit	24,739	20,062
Incubation Segment	Net Sales	3,139	2,219
Incubation Segment	Operating Profit (Loss)	(1,691)	(1,020)

Business (JPY MM)	Metric	FY2025/7	FY2024/7
BizReach	Net Sales	68,610	57,776
BizReach	Operating Profit (before corporate expense allocation)	28,408	23,331
BizReach	Operating Profit Margin (before corporate expense allocation)	41.4%	40.4%
HRMOS	Net Sales	5,212	3,844
HRMOS	Operating Loss (before corporate expense allocation)	(769)	(1,021)

FY2026/7 Full-Year Forecast

For FY2026/7, Visional forecasts consolidated net sales of JPY 99,200MM (23.7% YoY growth, +JPY 19.03Bn YoY). The BizReach net sales forecast is JPY 80,300MM (17.0% YoY growth) with an operating profit margin (before corporate expense allocation) forecast of 40%. The HRMOS net sales forecast is JPY 9,000MM (72.6% YoY growth), driven by growth of each service and the addition of Thinkings, Inc. (sonar ATS); HRMOS had been expected to become profitable in FY2026/7, but the plan has been changed to continue with investments, and a loss of JPY 0.20Bn is now expected. The Incubation Segment loss forecast is around JPY 2.80Bn as growth investments continue. Consolidated EBITDA is forecast at JPY 26,000MM (12.1% YoY growth, 26.2% margin) and operating profit at JPY 23,100MM (7.7% YoY growth, 23.3% margin); the forecast includes around JPY 1.1Bn of goodwill amortization resulting from the acquisition of Thinkings, Inc.

Item (JPY MM)	FY2026/7 Forecast	FY2025/7 Actual
Net Sales	99,200	80,161
BizReach Net Sales	80,300	68,610
HRMOS Net Sales	9,000	5,212
Incubation Segment Net Sales	5,600	3,139
EBITDA	26,000	23,196
Operating Profit	23,100	21,442
Ordinary Profit	23,530	22,715
Profit attributable to owners of parent	16,081	15,950

Shareholder Returns and Capital Allocation

Visional’s capital allocation framework prioritizes disciplined growth investment: the company commits to growth and profit expansion of BizReach while investing in other businesses and M&A, and states that if opportunities it believes will increase enterprise value arise, it will prioritize investment over the group’s consolidated growth and profit expansion. On shareholder returns, the company states it will consider them based on share price, market conditions, cost of capital, and future cash flows. A specific dividend figure cannot be confirmed from the materials.

Topics: Acquisition of Thinkings, Inc.

BizReach, Inc.’s acquisition of 100% of the shares of Thinkings, Inc., effective October 1, 2025, was disclosed on July 23, 2025. Thinkings launched its flagship cloud service “sonar ATS” in 2012 and is described as a long-standing leader in the ATS (Applicant Tracking System) cloud market, especially in the new-graduate hiring domain in the enterprise customer segment; its net sales were JPY 1,983MM in FY2024/7. Visional positions the ATS domain as a strategically important linkage point between BizReach and HRMOS in building its integrated HCM ecosystem, and expects the acquisition to contribute to enterprise value through functional integration and cross-selling between BizReach, BizReach Campus, the HRMOS series, and sonar ATS. Integration strategy with HRMOS is to be determined as part of a robust PMI process after the share acquisition.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.