FP Partner (7388): FY2025 Results Summary — Profits Beat the Revised Forecast Despite Lower Net Sales

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

FP Partner Inc. (7388), an insurance agency, reported net sales of 32,104 million yen for the fiscal year ended November 30, 2025, down 3,513 million yen or 9.9% year on year, with operating profit of 2,984 million yen (-44.0%), ordinary profit of 3,153 million yen (-42.6%) and profit of 2,042 million yen (-47.7%). The Company states that the number of new policies decreased year on year due to a net decrease in the number of sales employees and a decline in attracting customers from partner companies, resulting in a decrease in net sales, while net sales, operating profit and operating profit margin exceeded the revised earnings forecast. For the fiscal year ending November 30, 2026 the Company forecasts net sales of 36,261 million yen and profit of 2,222 million yen, and the annual dividend for the fiscal year ended November 30, 2025 is 94 yen per share. Note: the Company’s fiscal year ends on November 30; the results below are for the fiscal year ended November 30, 2025 and all labels follow the presentation materials. Figures are non-consolidated.

Full-Year Results (Fiscal Year Ended November 30, 2025)

Net sales fell 9.9% year on year to 32,104 million yen. Cost of sales declined 8.7% to 21,430 million yen but rose as a ratio to net sales to 66.8%, while SG&A expenses increased 12.8% to 7,689 million yen (24.0% of net sales). Operating profit fell 44.0% to 2,984 million yen, with the operating profit margin at 9.3% versus 15.0% a year earlier.

Item (Millions of yen)	FY ended Nov 30, 2024	Ratio to net sales	FY ended Nov 30, 2025	Ratio to net sales	Change	Percentage change
Net sales	35,617	100.0%	32,104	100.0%	-3,513	-9.9%
Cost of sales	23,467	65.9%	21,430	66.8%	-2,037	-8.7%
SG&A expenses	6,819	19.1%	7,689	24.0%	869	12.8%
Operating profit	5,330	15.0%	2,984	9.3%	-2,345	-44.0%
Ordinary profit	5,493	15.4%	3,153	9.8%	-2,339	-42.6%
Profit	3,903	11.0%	2,042	6.4%	-1,860	-47.7%

Achievement Versus the Revised Full-Year Forecast

The materials state that net sales and profits at each stage ended higher than the revised earnings forecast. Profit per share came to 88.79 yen against a forecast of 72.74 yen; the Company notes this is calculated by dividing net income by 23,001,237 shares, the average number of shares outstanding during the fiscal year ended November 30, 2025.

Item (Millions of yen)	Earnings forecast for FY ended Nov 30, 2025 [After revision]	Full-year results	Achievement against results forecast
Net sales	31,957	32,104	100.5%
Operating profit	2,457	2,984	121.4%
Operating profit margin	7.7%	9.3%	–
Ordinary profit	2,620	3,153	120.4%
Profit	1,670	2,042	122.3%
Profit per share	72.74 yen	88.79 yen	–

Key KPIs

The number of sales employees fell 185 (-7.3%) year on year to 2,333, the number of new policies fell 22,285 (-8.9%) to 228,111, and the number of prospective policy customers fell 39,708 (-24.3%) to 123,598. The number of policy transfers agreed to was 14,620 (-79,889, -84.5% year on year); the materials state that this KPI, which contributes to future profit margin improvement, grew significantly by 51.0% year on year including the portion from PRESTIGE Co., Ltd. (unconsolidated: 128,124). The number of policies in force reached 1,994,554, up 258,821 policies (+14.9%) year on year, and the number of existing customers reached 746,867, up 69,941 persons (+10.3%).

KPI	FY ended Nov 30, 2025	Year-on-year change
Number of sales employees	2,333	-185 [-7.3%]
Number of new policies	228,111	-22,285 [-8.9%]
Number of prospective policy customers	123,598	-39,708 [-24.3%]
Number of policy transfers agreed to	14,620	-79,889 [-84.5%]
Number of policies in force	1,994,554	+258,821 policies (+14.9%)
Number of existing customers	746,867	+69,941 persons (+10.3%)
Number of offices	192	–

Forecast for the Fiscal Year Ending November 30, 2026

The Company forecasts net sales of 36,261 million yen (+13.0%), operating profit of 3,326 million yen (+11.5%), ordinary profit of 3,467 million yen (+9.9%) and profit of 2,222 million yen (+8.8%), with an operating margin of 9.2% (-0.1pt). The materials state that the plan has been revised based on the results for the fiscal year ended November 30, 2025, that focus will be placed on education and DX promotion as maintenance (including compliance with the revised Insurance Business Act) and growth investments, that policy transfers are positioned as a pillar for revenue growth, and that the Company will target hiring 500 sales employees.

Item (Millions of yen)	FY ended Nov 30, 2025 (Results)	FY ending Nov 30, 2026 (Forecast)	Change	Percentage change
Net sales	32,104	36,261	4,157	+13.0%
Operating profit	2,984	3,326	342	+11.5%
Operating margin (%)	9.3	9.2	-0.1pt	–
Ordinary profit	3,153	3,467	314	+9.9%
Profit	2,042	2,222	180	+8.8%
Profit per share	88.79 yen	96.61 yen	7.82 yen	+8.8%

Shareholder Returns

The dividend for the fiscal year ended November 30, 2025 is 94 yen per share (first half: 47 yen, second half: 47 yen), against a total of 92 yen per share for the fiscal year ended November 30, 2024 (interim 45 yen, year-end 47 yen). The dividend policy maintains a target dividend payout ratio of 45% and continues progressive dividends, and the shareholder benefits program continues, under which shareholders holding one unit (100 shares) or more receive a QUO Card worth 3,000 yen on record dates of May 31 and November 30; digitalization of the benefits program starts in May 2026. The Company also states it will carry out a share buyback of up to 700 million yen in January, with a maximum of 350,000 shares (1.50% of the total number of shares issued excluding treasury shares), acquired by market purchase on the Tokyo Stock Exchange from January 15, 2026 to February 27, 2026, with the acquired shares to be granted as restricted stock compensation.

Dividend per share	FY ended Nov 30, 2024 (Results)	FY ended Nov 30, 2025
Interim	45 yen	47 yen [Results]
Year-end	47 yen	47 yen [Forecast]
Total	92 yen	94 yen

Business Plan and Topics

Under the rolling plan for the fiscal year ending November 30, 2026 (17th period), the Company shows net sales of 36,261 million yen, gross profit of 12,226 million yen, operating profit of 3,326 million yen and profit of 2,222 million yen, compared with net sales of 32,104 million yen, gross profit of 10,673 million yen, operating profit of 2,984 million yen and profit of 2,042 million yen for the fiscal year ended November 30, 2025. Figures for the fiscal years ending November 30, 2027 and November 30, 2028 are to be announced coinciding with the release of financial results for the fiscal year ending November 30, 2026. The materials state that on October 6, 2025 the Company received a business improvement order and submitted a business improvement plan to the Kanto Local Finance Bureau, and that after October 6, following submission of the business improvement plan, customer attraction from major partner companies resumed and the number of customers attracted from partner companies showed a recovery trend. A business partnership with YAMADA DENKI Co., LTD. commenced on December 1, 2025, under which financial planners will offer household budget counseling services at YAMADA DENKI’s 975 stores nationwide, with the Company aiming to quickly provide 50,000 services per year. On capital efficiency, the materials state ROE of 17.27% and a cost of shareholders’ equity of 11.33% for the fiscal year ended November 30, 2025, with the CAPM inputs given as a risk-free rate of 1.81%, beta of 1.59 and a risk premium of 6%. Cash on hand was approximately 7.5 billion yen as of November 30, 2025. The Company also plans to transfer its headquarters in March 2026.

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.