Orchestra Holdings (6533): FY2025 Results Summary — Revenue Up 12.3% on DX Growth and M&A

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Orchestra Holdings Inc. (Securities Code: 6533) reported results for the fiscal year ended December 31, 2025, in its presentation “Results of Operations for the Fiscal Year Ended December 31, 2025” dated February 13, 2026. Note: the company has a December 31 fiscal year-end, and the presentation labels the year ended December 31, 2025 as FY2025. Consolidated revenue reached ¥15,768 million (up 12.3% YoY) and operating profit reached ¥1,442 million (up 8.4% YoY), with progress against the earnings forecast largely in line with plan. Growth was driven primarily by the DX Business and by IP・Entertainment (the company’s game development subsidiaries).

Consolidated Results (Full-Year Actual)

Revenue totaled ¥15,768 million (up 12.3% YoY), driven primarily by the earnings contribution of three companies acquired through M&A over the past year. Gross profit rose 6.3% to ¥6,901 million, while the gross profit margin declined 2.5 points to 43.8%. Operating profit totaled ¥1,442 million (up 8.4% YoY), supported by a significant increase in revenue in the DX Business for the second consecutive fiscal year and a return to profitability in IP・Entertainment・Other. Each business grew, achieving year-over-year growth in revenue, gross profit, and operating profit.

Item (Millions of yen)	FY2024	FY2025	% Change
Revenue	14,036	15,768	+12.3%
Gross Profit	6,495	6,901	+6.3%
Gross Profit Margin	46.3%	43.8%	△2.5pt
Business Profit	1,334	1,387	+4.0%
Operating Profit	1,331	1,442	+8.4%
Operating Profit Margin	9.5%	9.2%	△0.3pt

On the balance sheet, total assets stood at ¥16,159 million at the end of FY2025 (up 12.4% from a year earlier) and equity at ¥7,014 million (up 7.9%). The parent company owners’ equity ratio was 40.2% and the goodwill-to-capital ratio was approximately 0.77 times, with the company maintaining financial soundness while continuing growth investments.

Segment Results

In the DX Business, driven primarily by VES’s rapid growth and non-linear growth through M&A, revenue totaled ¥7,615 million (up 11.9% YoY) and segment profit totaled ¥672 million (up 42.5% YoY). In the DM Business, although the company lost a large-scale project in Q2, performance recovered from Q3 through Q4 due to strengthened sales capabilities; revenue totaled ¥5,705 million (up 1.1% YoY), while segment profit declined to ¥1,851 million (down 7.9% YoY) due to higher costs associated with strengthening the organizational structure. In IP, Entertainment and Other Businesses, driven by the consolidation of Land Ho Co., Ltd, revenue totaled ¥2,643 million (up 55.9% YoY), and segment profit totaled ¥14 million (an increase of ¥57 million YoY), driven by improved profitability.

Segment	Metric (Millions of yen)	FY2024	FY2025	YoY
DX Business	Revenue	6,802	7,615	+11.9%
DM Business	Revenue	5,645	5,705	+1.1%
IP, Entertainment, and Other Businesses	Revenue	1,695	2,643	+55.9%
DX Business	Segment profit	471	672	+42.5%
DM Business	Segment profit	2,008	1,851	-7.9%
IP, Entertainment, and Other Businesses	Segment profit	−42	14	+57 million yen

As a business highlight for Q4 FY2025, Digital Identity Inc., a core subsidiary of the Digital Marketing Business, won the “Best SMB Partner” award at the Meta Agency First Awards Japan 2025 hosted by Meta Japan — one of only three companies in Japan to receive the award. In response to the turning point in the digital marketing industry brought about by the emergence of generative AI, Digital Identity also developed Forté.AI, an AI-powered marketing platform primarily for internal use, with certain functions, including LLM mention rate analysis, also offered to third parties.

FY2026 Forecast

For FY2026, the company forecasts revenue of ¥17,500 million (YoY growth of +11.0%) and operating profit of ¥1,600 million (YoY growth of +10.9%). In the DX Business, the company will strengthen its organization by expanding human capital through hiring and M&A. In the DM Business, it will accelerate growth by enhancing sales and proposal capabilities, building on the momentum from 2H 2025. In IP, Entertainment and Other Businesses, current focus areas are expected to continue growing steadily.

Item (Millions of yen)	FY2026 (Forecast)	FY2025 (Actual)	YoY Growth
Revenue	17,500	15,768	+11.0%
Operating Profit	1,600	1,442	+10.9%

Shareholder Returns

The company positions the enhancement of shareholder return initiatives as a key management priority. An increased dividend is planned for the fiscal year ending December 2025: an ordinary dividend of 12.0 yen per share (forecast), compared with an ordinary dividend of 11.0 yen for FY2024 (actual). Under the share repurchase program launched on August 15, 2025, 230,700 shares were acquired, and the program concluded on November 26. On February 13, 2026, a new share repurchase program was approved: open market purchases of the company’s common stock from February 16, 2026 to April 30, 2026, with a total repurchase amount of ¥100 million and a maximum of 150,000 shares; the program was also implemented for potential use in M&A transactions.

Dividend per Share	FY2024 (Actual)	FY2025 (Forecast)
Ordinary dividend	11.0 yen	12.0 yen

The company also operates a shareholder benefits program, under which shareholders holding 200 or more shares for one year or longer of continuous holding receive a digital gift worth 15,000 yen, with a reference yield of 6.4% (calculated using the stock price as of the end of October 2025 of 1,173 yen). The new shareholder benefit program launched in November 2025 attracted around 2,000 new shareholders, with costs expected to remain within the projected level (up to approximately ¥60 million).

Medium-Term Outlook / Topics

According to the mid-term business outlook, after undergoing a structural reform phase starting in FY2022, the company will enter a growth phase from FY2026, accelerating profit expansion. Since its founding, the company has executed approximately 30 M&A transactions (a total of 29 investments), and its strengths lie in investment and PMI expertise as well as execution capabilities. The number of executives and employees was 1,220 at the end of December 2025, with the number of employees in the DX business increasing by approximately 120 from the end of the previous fiscal year.

Regarding listing maintenance standards, the company continues to fall short of the Prime Market listing maintenance standard for “market capitalization of freely tradable shares” (3.60 billion yen as of December 31, 2025, versus the 10 billion yen criterion). During the transitional period or improvement period, the company aims to achieve the standard by focusing on improving performance and enhancing shareholder returns to boost its stock price.

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.