OPEN Group (6572): FY2025 Results Summary — Record Profits on Automation Growth

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

Note: OPEN Group’s fiscal year ends in February, and the company’s materials label the fiscal year ended February 2026 as “FY2026/2”; this article keeps the labels used in the materials. OPEN Group, Inc. (TSE Prime Market: 6572), a pure holding company operating the Intelligent Automation and Ad Automation businesses, reported FY2026/2 consolidated revenue of ¥8,148 million (+12.8% YoY) and operating profit of ¥1,004 million (+53.7% YoY). The company states that both core segments delivered firm results and that it achieved a record high in profits, with increases in revenue, operating profit, ordinary profit, and profit attributable to owners of parent.

Consolidated Results (FY2026/2 Actual)

Revenue rose 12.8% YoY to ¥8,148 million. Operating profit increased 53.7% to ¥1,004 million, lifting the operating margin from 9.0% to 12.3%. Ordinary profit jumped 304.4% to ¥949 million, and profit attributable to owners of parent grew 46.8% to ¥639 million, with the net income margin improving from 6.0% to 7.8%. According to the revenue bridge, core businesses added ¥717 million and Other added ¥205 million versus FY2025/2, with Other lifted by companies that entered the Group.

Item (JPY MM)	FY2025/2	FY2026/2	YoY
Revenue	7,224	8,148	+12.8%
Operating profit	653	1,004	+53.7%
OP margin	9.0%	12.3%	–
Ordinary profit	234	949	+304.4%
Profit before income taxes	244	782	+220.1%
Net income	435	639	+46.8%
NI margin	6.0%	7.8%	–

Segment Results

In the Intelligent Automation Segment, revenue from external customers rose 18.2% YoY to ¥5,638 million, with operating profit of ¥964 million and an operating margin of 16.8%. Revenue of both BizRobo! and RoboRobo was firm as the number of adopting companies increased steadily, and the churn rate for BizRobo! remained low at 0.89%. Recurring revenue increased 6% YoY. In the Ad Automation Segment, revenue from external customers declined 11.7% to ¥1,317 million due to progress in the business reorganization of projects that had increased earnings volatility; however, profit increased YoY on an expanded handling share of the mainstay CPA advertising business, improved fee rates, and strengthened cost control, and the segment posted operating profit of ¥648 million with a 47.9% margin. Other revenue rose 24.1% to ¥1,192 million with operating profit of ¥42 million.

Segment (JPY MM)	Revenue from external customers	YoY	Operating profit	OP margin
Intelligent Automation Segment	5,638	+18.2%	964	16.8%
Ad Automation Segment	1,317	△11.7%	648	47.9%
Other	1,192	+24.1%	42	3.6%
Adjustment	–	–	△650	–
Consolidated	8,148	+12.8%	1,004	12.3%

FY2027/2 Forecast

For FY2027/2, the company forecasts revenue of ¥9,800 million (+20.3% YoY), driven by the stable growth of existing businesses and growth in new businesses. Incorporating an aggressive investment plan in AI and new businesses, operating profit is forecast at ¥1,100 million (+9.5% YoY), ordinary profit at ¥1,080 million (+13.8%), and profit attributable to owners of parent at ¥650 million (+1.7%). In the operating profit bridge, core businesses are expected to add ¥332 million and Other ¥72 million, while losses from new business investments are expected to subtract ¥309 million. The company plans to invest approximately ¥1 billion during FY2027/2 in new businesses such as AI Hyper Automation, Payroll Automation, and RoboRobo Credit Check & RPO, on top of which it will also secure a budget for M&A investment.

Item (JPY MM)	FY2026/2	FY2027/2 (Forecast)	YoY
Revenue	8,148	9,800	+20.3%
Operating profit	1,004	1,100	+9.5%
Ordinary profit	949	1,080	+13.8%
Profit attributable to owners of parent	639	650	+1.7%
Dividend per share (JPY)	4.90	6.50	–

Shareholder Returns

The company’s dividend policy sets the dividend payout ratio at 40% of core business profit (after-tax operating profit adjusted to exclude profits and losses from new business development), and it aims for total shareholder returns of 40% or higher of adjusted operating profit after income taxes. For FY2026/2, it plans to pay a dividend of ¥4.9 per share, revised up from the announced forecast of ¥4.5, subject to approval at the ordinary general meeting of shareholders. During FY2026/2 the company also conducted the acquisition of treasury shares for approximately ¥2 billion in total. For FY2027/2, the dividend forecast is ¥6.5 per share, and the company expects to achieve its DOE (dividend on equity) target of approximately 3% — originally planned for introduction by FY2028/2 — ahead of schedule.

Fiscal year	Dividend per share
Before FY2024/2	¥0
FY2025/2	¥3.0 (plus commemorative dividend of ¥2.5)
FY2026/2	¥4.9 (planned; subject to shareholder approval)
FY2027/2	¥6.5 (forecast)

Medium-Term Plan / Topics

OPEN Group positions its future growth strategy as evolving from RPA-centered automation of individual tasks to hyper automation of entire processes combined with AI, targeting a hyper automation market in Japan with a TAM of ¥700 billion in 2030. In the Intelligent Automation business it aims for the No. 1 share of the hyper automation market by FY2028/2 and average annual operating profit growth of 30% over FY2026–FY2028, upselling the “Tungsten TotalAgility” hyper automation tool to a cumulative total of 3,000 customer companies, including 800 enterprise companies. In Ad Automation it targets the No. 1 share of the performance-based advertising industry with annual handling volume of ¥30 billion by FY2028/2; PRESCO’s transaction volume grew at a 29.8% CAGR to ¥13,691 million in FY2025/2. In Payroll Automation it aims to become No. 1 in the mid-sized and SME payroll calculation market with annual revenue of ¥3 billion by FY2028/2, and in Medical Automation it targets the launch of a hyper-online medical service to 200 institutions within three years.

Since 2023 the company has executed M&A including Gokinjowork (December 2023), AUTORO (July 2024), Asuka Payroll Pro (October 2024), Payroll Pro (June 2025), OASIS INNOVATION (September 2025), and SME Support Center (March 2026), and in FY2027/2 it plans to focus on M&A in the payroll field backed by net cash of about ¥5.9 billion and expected operating cash flow of ¥3 to ¥5 billion over the next three years. Regarding the Prime Market listing criteria, as of the end of February 2026 the company met the criteria for number of shareholders (8,639) and number of tradable shares (159,929 units), but had not met the criteria for market capitalization of tradable shares (¥4.4 billion versus the ¥10.0 billion criterion) and ratio of tradable shares (25.3% versus 35%). It aims to achieve the criteria during the fiscal year ending the end of February 2027, which is the designated improvement period, and has begun investigating and considering backup plans.

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.