BELLSYSTEM24 Holdings (6183): FY2025 Results Summary — Profit Growth and the Launch of Mid-Term Management Plan 2028

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

BELLSYSTEM24 HOLDINGS, INC. reported revenue of 145.83 billion yen for FY2025, the fiscal year ended February 28, 2026, up 2.22 billion yen or 1.5% year on year. Operating profit rose 1.06 billion yen, or 9.2%, to 12.65 billion yen, and net income attributable to owners of the parent increased 0.18 billion yen, or 2.2%, to 8.18 billion yen. Operating income in particular rose substantially due partly to the gain from the sale of a part of the content business. Alongside the results, the company disclosed Mid-Term Management Plan 2028 (Hybrid Intelligence), which targets revenue of 175.0 billion yen and operating profit of 16.0 billion yen in FY2028.

Consolidated Results (Full-Year Actual)

Revenue climbed 1.5% year on year, and operating income was up 9.2% year on year due mainly to the positive effect of different measures to increase revenue and a decrease in SG&A expenses. Gross profit rose 2.11 billion yen year on year on the effects of profit improvement measures, such as higher revenue, higher billing rates for client companies, and cost reduction including site consolidation and operational efficiency improvements. Selling, general and administrative expenses decreased 0.57 billion yen year on year, due largely to the absence of site consolidation expenses recorded in the previous fiscal year, while other profits/expenses decreased 1.62 billion yen year on year following the absence of the gain on sale of shares of subsidiaries and impairment loss recorded in the previous fiscal year. Against the company’s own consolidated earnings forecast, the target achievement rate was 97.2% for revenue, 105.4% for operating profit and 101.0% for net income attributable to owners of the parent.

Item (billions of yen)	FY2024	FY2025	Change	YoY Percent Change	Consolidated Earnings Forecast (Planned)	Target achievement rate
Revenue	143.61	145.83	+2.22	+1.5%	150.00	97.2%
Gross profit	25.41	27.52	+2.11	+8.3%	28.20	97.6%
Gross profit margin	17.7%	18.9%	—	—	18.8%	—
Selling, general and administrative expenses	-16.18	-15.61	+0.57	-3.6%	-16.30	—
Other income (expenses)	2.36	0.74	-1.62	—	0.10	—
Operating profit	11.59	12.65	+1.06	+9.2%	12.00	105.4%
Operating income ratio	8.1%	8.7%	—	—	8.0%	—
Share of profit (loss) of investments accounted for using equity method	0.18	0.38	+0.20	—	0.59	—
Financial income/costs	-0.53	-0.74	-0.21	—	-0.83	—
Net income attributable to owners of the parent	8.00	8.18	+0.18	+2.2%	8.10	101.0%

Segment Results

In the smart contact center (SC) business, revenue grew 1.71 billion yen, or 1.4%, year on year following steady increases in projects for communication carriers and in public sector projects as well as operations related to two national elections. In the smart business support (SB) business, revenue grew 0.65 billion yen, or 3.3%, year on year, after steady increases in administrative operations on clients’ premises and in personnel affairs and accounting operations at subsidiary Horizon One Corporation, despite a decrease in human resources-related operations. Revenue based on ITOCHU Synergy increased to 17.19 billion yen, up 1.8 billion yen or 11.7% year on year, centered around telecom carriers and insurance sectors.

Segment (revenue, billions of yen)	FY2024	FY2025	Change	YoY Percent Change	Consolidated Earnings Forecast (Planned)	Target achievement rate
CRM Business	143.20	145.56	+2.36	+1.6%	149.50	97.4%
Smart contact center (SC) business	123.18	124.89	+1.71	+1.4%	127.00	98.3%
Smart business support (SB) business	20.02	20.67	+0.65	+3.3%	22.50	91.9%
Other Businesses	0.41	0.27	-0.14	-34.3%	0.50	54.0%

Other operating indicators disclosed for FY2025 include the number of client companies, which increased to 1,690, an increase of 104 or 6.6% from the previous fiscal year, with growth in the large clients category (clients from which revenue of at least 300 million yen was earned) as well as in the medium-sized and small transaction client categories. The number of BellCloud+ seats expanded to 8,800, while the promotion of streamlining by consolidating sites resulted in the number of booths at business sites decreasing to 17,500. The directly employed CM ratio was 84.7%.

Financial Position and Cash Flow

Total assets stood at 169.82 billion yen at the end of February 2026, down 4.59 billion yen from the end of February 2025, with right-of-use assets decreasing 5.12 billion yen mainly due to site consolidation. Equity was 74.78 billion yen, of which equity attributable to owners of parent was 73.93 billion yen, and the ratio of shareholders’ equity to total assets improved 3.3 points to 43.5%. Net interest-bearing debt decreased 5.51 billion yen from 47.06 billion yen at the end of the previous fiscal year to 41.55 billion yen, and net DER dropped to 0.56 times from 0.67 times. Cash flows from operating activities were 16.53 billion yen and free cash flow was 15.96 billion yen, up 2.26 billion yen year on year. ROE stood at 11.4% for FY2025; the materials state that the cost of shareholders’ equity was around 8% in FY2025 and that PBR was around 1.5x.

FY2026 Forecast

In the full-year forecast (plan) for FY2026, the fiscal year ending February 2027, revenue is expected to rise 4.2% year on year to 152.00 billion yen, operating income to rise 2.7% year on year to 13.00 billion yen and net income attributable to owners of parent to rise 3.9% year on year to 8.50 billion yen. SC business revenue is forecast to rise 3.84 billion yen year on year, chiefly following the capturing of outsourcing demand amid clients experiencing a labor shortage, M&A activities, other initiatives and the start of the full-scale operation of the AI-related platform (Hybrid Operation Loop). SB business revenue is projected to increase 2.33 billion yen year on year following the expansion of personnel affairs and accounting operations, capturing of demand from BPR consulting projects and new services using AI, etc. in collaboration with AVILEN. The materials note that from FY2026, figures for the SC business include Other Businesses as their revenue decreased partly due to the partial sale of the content business.

Item (billions of yen)	FY2025 (Actual)	FY2026 (Forecast)	Change	YoY Percent Change
Revenue	145.83	152.00	+6.17	+4.2%
Smart Contact Center (SC) Business	125.16	129.00	+3.84	+3.1%
Smart Business Support Services (SB)	20.67	23.00	+2.33	+11.3%
Gross profit	27.52	29.00	+1.48	+5.4%
Gross profit margin	18.9%	19.1%	—	—
Selling, general and administrative expenses	-15.61	-16.10	-0.49	+3.2%
Other income / expenses	0.74	0.10	-0.64	—
Operating profit	12.65	13.00	+0.35	+2.7%
Operating income ratio	8.7%	8.6%	—	—
Share of profit (loss) of investments accounted for using equity method	0.38	0.55	+0.17	+45.9%
Financial income / costs	-0.74	-0.94	-0.20	—
Net income attributable to owners of the parent	8.18	8.50	+0.32	+3.9%

Shareholder Returns

The company states that it will continue striving to increase dividends through expansion in profit, with a basic policy of maintaining the consolidated payout ratio at 50%. The annual dividend for FY2025 was 60 yen per share (interim 30 yen, year-end 30 yen), for a payout ratio of 54.4%. In FY2026, annual dividends will be kept unchanged at 60 yen per share, with a forecast payout ratio of 52.5%.

Dividends per share (yen)	FY2023	FY2024	FY2025	FY2026 (Forecast)
Interim dividend	30.0	30.0	30.0	30.0
Year-end dividend	30.0	30.0	30.0	30.0
Annual dividend	60.0	60.0	60.0	60.0
Payout ratio	58.5%	55.1%	54.4%	52.5%

Mid-Term Management Plan 2028 and Topics

Mid-Term Management Plan 2028 (Hybrid Intelligence) sets FY2028 targets of revenue of 175.0 billion yen (SC Business 145.0 billion yen, SB Business 30.0 billion yen), operating profit of 16.0 billion yen (9.1%) and income after taxes of 10.0 billion yen plus extra upside potential due to the further expansion of generative AI, against FY2025 results of revenue of 145.8 billion yen (SC Business 125.2 billion yen including other businesses, SB Business 20.7 billion yen), operating profit of 12.7 billion yen (8.7%) and income after taxes of 8.2 billion yen. This implies net sales growth of +7.3% per year, operating profit growth of +10.9% per year and income after taxes growth of +8.7% per year. The investment policy calls for strategic growth investments of 25.0 billion yen over the next three years, directed at expanded data utilization (generative AI-related investment), maximizing the value of people (investment in human resource development) and strengthening strategic partnerships (M&A and business investment). The shareholder return policy is a consolidated payout ratio of 50%. In the SC business domain, the plan targets a 20 billion yen revenue increase over three years, made up of organic growth of 5 billion yen, expansion of existing business through roll-ups of 5 billion yen, and 10.0 billion yen from AI-driven contact center automation and marketing support utilizing VOC data; in the SB domain, expansion of the BPO domain through M&A, etc. of 5 billion yen and provision of BPR consulting and AI agents of 5 billion yen add 10.0 billion yen.

Under the previous Mid-term Management Plan 2025, a plan to invest at least 15 billion yen during the three-year period up to FY2025 had been announced. In FY2025, a total of 2.31 billion yen was invested, including capital expenditures of 1.03 billion yen, business investment of 0.15 billion yen and investment expenses of 1.13 billion yen, bringing the three-year total to 10.03 billion yen; the materials state that business investments in matters such as M&A activities were only two-thirds of what had been expected. FY2025 topics included the launch of Hitotonari AI, a solution that infers customer needs using AI based on call data; the announcement of BellCloud+CX, an AI-equipped CX cloud-based contact center platform developed in collaboration with NiCE; the new Knowledge Generator service; a business alliance with AVILEN and ITOCHU to support the collaborative creation of AI agents; a strategic partnership with RevComm; and a partnership with Alfresa Corporation to launch D-REACH, a contract-based information provision support service for pharmaceutical companies.

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.