RAKUS (3923): FY2025 Results Summary — Operating Profit Up 70% as Cloud Margin Tops 30%

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

Note: RAKUS labels the fiscal year ended March 31, 2026 as “FY2026.3” in its results presentation; this site classifies the latest completed fiscal year as FY2025, and all figures and labels below follow the source material.

RAKUS Co., Ltd. (TSE Prime, 3923) reported consolidated net sales of 60,286 million yen for the fiscal year ended March 2026, up 23.3% year on year, with operating profit surging 70.2% to 17,345 million yen and the operating profit margin improving 7.9 points to 28.8%. Profit attributable to owners of parent rose 66.1% to 13,293 million yen, including extraordinary income of 1,491 million yen from the first-quarter sale of shares in Kaonavi, Inc. The company achieved all figures set in its five-year Mid-Term Management Targets and announced a New Mid-Term Management Plan covering FY2027.3 to FY2029.3.

Consolidated Results (Full-Year Actual)

Net sales continued a steady upward trend year on year, and the operating profit margin improved significantly, driven by sales growth and the optimization of advertising costs. Net sales exceeded the guidance revised at H1 by approximately 0.3 billion yen, and operating profit by approximately 1.4 billion yen. EBITDA increased 64.8% to 18,704 million yen, and the number of employees grew 15.7% to 3,569. Against the five-year Mid-Term Management Targets (FY2022–FY2026), the company achieved a five-year sales CAGR of 31.4% (target: 31%–32%), profit for FY2026.3 of 13.2 billion yen (target: 10 billion yen +), and net assets of 26.0 billion yen as of March 2026 (target: 20 billion yen +).

Item (million yen)	FY2026.3	FY2025.3	YoY
Net Sales	60,286	48,904	+23.3%
Gross profit	45,420	36,310	+25.1%
SG&A	28,075	26,117	+7.5%
Operating Profit	17,345	10,192	+70.2%
OP margin	28.8%	20.8%	+7.9Pt
EBITDA	18,704	11,351	+64.8%
Profit attributable to owners of parent	13,293	8,003	+66.1%

The balance sheet and cash flows remained strong: total assets stood at 36,581 million yen at the end of March 2026, and the equity ratio improved 1.7 points to 71.2%. Cash flow from operating activities was 13,391 million yen, free cash flow was 10,559 million yen, and cash and cash equivalents at fiscal year-end stood at 13,891 million yen.

Segment Results

In the Cloud Business, net sales rose 23.7% to 51,770 million yen and operating profit increased 71.1% to 16,027 million yen, lifting the segment operating margin 8.6 points to 31.0%. ARR (Annual Recurring Revenue) grew 19.4% year on year, surpassing 50.0 billion yen in December 2025, and the recurring revenue ratio remained high at 92.6%. In the IT Outsourcing Business, net sales rose 20.9% to 8,516 million yen and operating profit increased 59.2% to 1,318 million yen; the transfer of all shares of this business was completed on April 1, 2026, and it will be excluded from the scope of consolidation for FY2027.3.

Segment	Metric (million yen)	FY2026.3	FY2025.3
Cloud Business	Net Sales	51,770	41,862
Cloud Business	Operating Profit	16,027	9,365
Cloud Business	OP Margin	31.0%	22.4%
IT Outsourcing Business	Net Sales	8,516	7,041
IT Outsourcing Business	Operating Profit	1,318	827
IT Outsourcing Business	OP Margin	15.5%	11.8%

By service, core offerings continued to drive overall growth. Raku Raku Seisan (expense management) sales rose 19.5% to 20,723 million yen and Raku Raku Meisai (form issuance) sales rose 31.1% to 13,061 million yen. Raku Raku Kintai (attendance management), presented as a new reportable line from FY2026.3 with prior periods retroactively restated, grew 36.7% to 2,037 million yen.

Cloud Business service (million yen)	FY2026.3	FY2025.3	YoY
Raku Raku Seisan	20,723	17,348	+19.5%
Raku Raku Meisai	13,061	9,966	+31.1%
Raku Raku Hambai	7,157	5,517	+29.7%
Raku Raku Kintai	2,037	1,490	+36.7%
Raku Raku Jidootai (formerly Mail Dealer)	3,429	3,103	+10.5%
E-mail distribution services	4,101	3,687	+11.2%
Others	1,257	748	+68.1%
Total of the Cloud Business	51,770	41,862	+23.7%

Transfer of the IT Outsourcing Business

RAKUS officially transferred the IT Outsourcing Business to BREXA Technology Co., Ltd. on April 1, 2026, at a transfer price of 18,774 million yen, and expects to record extraordinary income of approximately 16.7 billion yen (estimated at 16,685 million yen) in the first quarter of FY2027.3. The company states that while the business was performing well, it had limited synergy with the Cloud Business, and management resources will be concentrated and invested in the cloud business. In anticipation of the cash inflows, RAKUS implemented a 5.0 billion yen share buyback ahead of schedule in FY2026.3 and cancelled all acquired shares.

FY2027.3 Guidance

For the fiscal year ending March 2027, RAKUS guides for net sales of 59,700 million yen, down 1.0% year on year, assuming flat sales due to the transfer of the IT Outsourcing Business while expecting 15.3% growth in the Cloud Business. Operating profit is guided at 20,500 million yen, up 18.2%, with an operating margin of 34.3%. Profit attributable to owners of parent is expected to rise 89.6% to 25,200 million yen, reflecting the large extraordinary income from the business transfer in addition to profit growth in the Cloud Business.

Item (million yen)	FY2027.3 (Guidance)	FY2026.3 (Actual)	YoY
Net Sales	59,700	60,286	-1.0%
Cloud Business Net Sales	59,700	51,770	+15.3%
Operating Profit	20,500	17,345	+18.2%
OP margin	34.3%	28.8%	+5.6Pt
Ordinary Profit	20,500	17,440	+17.5%
Profit attributable to owners of parent	25,200	13,293	+89.6%
EPS (yen)	71.16	36.91	+92.8%
DPS (yen)	8.00	7.00	+14.3%

Shareholder Returns

RAKUS targets a total payout ratio of over 20% and aims to achieve consecutive increases in annual dividends per share, using the previous year’s performance as the lower limit. The annual dividend for FY2026.3 was 7.00 yen per share, and the FY2027.3 guidance is 8.00 yen, a planned increase for the 15th consecutive period. For FY2027.3, total dividends are planned at 2,832 million yen, with an initial dividend payout ratio and total payout ratio of 11.2%; the company plans to implement additional returns in line with its total payout ratio policy, flexibly determining the timing and scale depending on funding needs. In FY2026.3, the company also implemented a 5.0 billion yen share buyback and cancelled all acquired shares.

New Mid-Term Management Plan (FY2027.3–FY2029.3)

The New Mid-Term Management Plan sets a direction of shifting to quality growth focusing on profitability. KPIs are: organic sales CAGR of 15%+ in the Cloud Business (assuming no M&A or major price revisions); achievement of the “Rule of 50” — the sum of the sales growth rate and operating profit margin reaching 50% or higher — from FY2028.3 onwards; sales per regular employee of 30 million yen+ by FY2029.3 (versus 23.66 million yen in FY2026.3, excluding the IT Outsourcing Business); and capital efficiency of ROE maintained at 30%+ with a total payout ratio of 20%+ and continued consecutive dividend increases. Growth strategies comprise an AI strategy (including the new CAIO position and development of AI-native products), a full-scale entry into the enterprise market, a cross-sell strategy under an “Integrated Best-of-Breed” approach including the Raku Raku Jugyoin Portal common ID infrastructure launched in March 2026, and an investment strategy anticipating industry realignment. On capital allocation, over 90.0 billion yen of funds can be utilized in total over three years, combining cash and deposits of 31.3 billion yen at the beginning of FY2027.3 and expected cumulative operating cash flow of 60.0 billion yen+.

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.