E-Guardian (6050): FY2025 Results Summary — Core SNS Support and Security Set Sales Records as Profit Slips

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

E-Guardian Inc. reported net sales of ¥11,321 million for FY2025, the fiscal year ended September 30, 2025, a year-on-year comparison of 99.4%, and operating profit of ¥1,504 million, a year-on-year comparison of 88.2%. The company points to a larger-than-expected decline in sales of large-scale SNS-related support projects, sales of large-scale customer support for home console games falling below expectations, and the time lag between the sales decline and labor cost adjustments as the factors behind its full-year forecast revision. At the same time, SNS related support and cyber security, which the company describes as its core businesses, set new records for sales. For FY2026 the company presents a dividend forecast of ¥38 and initiatives centered on revamping its management and sales structures, improving profitability, and focusing on AI development investment.

Consolidated Results (Full-Year Actual)

The summary of FY2025 results shows declines across all four headline lines against the prior fiscal year. Operating profit came in at 88.2% of the prior-year level, ordinary profit at 89.6% and profit attributable to owners of parent at 89.2%.

Millions of yen	Actual Results	YoY Actual Results	YoY Comparison
Net sales	11,321	11,391	99.4%
Operating profit	1,504	1,705	88.2%
Ordinary profit	1,530	1,708	89.6%
Profit attributable to owners of parent	943	1,057	89.2%

Quarterly Trend of Revenue and Operating Income

By quarter, the company states that profit deteriorated due to labor cost adjustments resulting from reduced sales and the talent acquisition and incurrence of training costs in preparation for the commencement of large-scale projects. The figures below are the quarterly data labels for FY2025 shown on the slide (millions of yen).

FY2025	1Q	2Q	3Q	4Q
Net sales	2,908	2,959	2,741	2,712
Operating profit	411	518	276	297

Results by Business

The slide on results by business states that game related support and other sales declined significantly, while SNS related support and cyber security, the company’s core businesses, set new records for sales. SNS related support rose to 7,141 from 6,758 in 2024, and Security rose to 939 from 903, while Game related support, Advertisement related support and Other all declined.

Business	2025	2024	2023
SNS related support	7,141	6,758	6,848
Game related support	1,386	1,578	1,874
Advertisement related support	1,298	1,407	1,534
Security	939	903	773
Other	555	744	877

FY2026 Initiatives

The company sets out its must-win battles for FY2026 as returning sales to a growth trajectory and improving profitability, through (i) revamping of business execution and sales structures, (ii) implementation of new strategies in the BPO and cyber security domains, (iii) investment in AI development to transition away from labor-intensive business models, and (iv) M&A to expand business scale. Specific FY2026 net sales and profit forecast figures cannot be confirmed from the materials.

In the BPO domain, the company says it will focus on three areas in FY2026 – expanding existing BPO domains, entering new BPO domains, and promoting AI development investment – while exploring new domains and services. Development of a human-in-the-loop AI agent-based customer support tool is scheduled to be completed in FY2026. In cyber security, the company plans to use security education as a door knocking tool to expand business, focus on cross-selling with its core services, and pursue new business creation together with CyLeague Holdings and SMBC CyberFront Inc.

Shareholder Returns

The company is forecasting a dividend increase considering the importance of shareholder returns, while maintaining the dividend policy. The dividend forecast for FY2026/9 is ¥38 per share, following ¥35 for FY2025/9. Shareholder benefits have also been changed from QUO cards to Digital Gift to improve convenience for shareholders: holders of 100 shares or more receive Digital Gift worth 5,000 yen for a continuous holding period of less than 1 year, and Digital Gift worth 8,000 yen for 1 year or more.

Dividend per share (yen)	FY2021/9	FY2022/9	FY2023/9	FY2024/9	FY2025/9	FY2026/9 (Forecast)
Dividend per share	14	24	26	31	35	38

Company Profile and Strengths

E-Guardian Inc. describes itself as a comprehensive internet security company safeguarding online safety and security. It is listed on TSE Prime (6050), was founded in May 1998, and has capital stock of JPY 1,967 million, with 3 domestic and 2 overseas subsidiaries as of September 2025. The company attributes its high quality and highly efficient services to the early introduction of AI and human integration, citing an operating profit margin of approximately 13.3% as of September 2025.

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.