Atrae (6194): FY2025 Results Summary — Operating Profit Up 21.3% as Wevox Sales Grow 29.1%

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

Atrae, Inc. reported net sales of 7,634 million yen for FY2025, the fiscal year ended September 30, 2025, a year-on-year change of △0.1%, while operating profit rose 21.3% year on year to 1,853 million yen, giving an operating profit margin of 24.3%. Against the company’s plan, sales came in at 99.1% of the forecast and operating profit at 102.9%. By service, Green’s Q4 sales declined 9.1% year on year, while Wevox sales achieved a year-on-year increase of 29.1% for the full year. For FY2026 the company forecasts sales of 8,600 million yen (+12.7%) and operating profit of 1,100 million yen (△40.6%), positioning FY2026 as a year of strategic investment in advertising, human capital and new feature development.

Consolidated Results (Full-Year Actual)

The materials carry the following note on the basis of comparison: following the transfer of a portion of the shares of Altiri, Inc. in FY2024, Atrae, Inc. no longer has any consolidated subsidiaries. From FY2025, Atrae, Inc. operates as non-consolidated with People Tech as its sole reportable segment, replacing the previous People Tech and Sports Tech segments. Therefore, net sales YoY compares People Tech between FY2024-FY2025, while operating profit YoY compares FY2024 consolidated figures and FY2025 non-consolidated figures. The FY2025 forecast shown for comparison is the revised forecast announced on August 12, 2025.

Item (Million yen)	FY2025 Full-year	FY2024 Full-year	YoY	FY2025 forecast	Progress
Sales	–	8,598	–	–	–
Sales: People Tech	7,634	7,642	△0.1%	7,700	99.1%
Sales: Green	4,425	5,128	△13.7%	4,480	98.8%
Sales: Wevox	3,154	2,443	+29.1%	3,170	99.5%
Sales: Other	55	71	△22.5%	50	110.0%
Sales: Sports Tech (Altiri)	–	956	–	–	–
Operating Expenses	–	7,070	–	–	–
Operating Expenses: People Tech	5,781	5,453	+6.0%	5,900	98.0%
Operating Expenses: Sports Tech	–	1,617	–	–	–
Operating Profit	1,853	1,528	+21.3%	1,800	102.9%
(Operating profit before share-based payment expenses)	(2,173)	(1,848)	(+17.6%)	(2,120)	102.5%
Operating Profit Margin	24.3%	17.8%	+6.5pt	23.4%	0.9pt
(Operating profit margin before share-based payment expenses)	(28.5%)	(21.5%)	(+7.0pt)	(27.5%)	(1.0pt)

Operating profit before share-based payment expenses is defined in the materials as the operating profit for financial accounting purposes plus the sum of share-based payment expenses of restricted stock and stock acquisition rights, which are non-cash expenses.

Cost Structure

On the cost side, the materials state that Green is actively expanding web advertising after assessing its investment effectiveness, that no year-end bonuses were paid and personnel expenses decreased, and that full-year operating profit grew 21.3% YoY, achieving an operating profit margin of 24.3%. Percentages of sales for FY2024 are shown against total sales including Sports Tech, while FY2025 figures are for People Tech.

Item (Million yen)	FY2025 Full-year	% of Sales	FY2024 Full-year	% of Sales	YoY
Operating Expenses: People Tech	5,781	75.7%	5,453	63.4%	+6.0%
Cost of sales	253	3.3%	87	1.0%	+190.8%
SG&A: Web Ad	2,670	35.0%	2,758	32.1%	△3.2%
SG&A: TV Ad and Other	49	0.6%	118	1.4%	△58.5%
SG&A: Personnel Cost	1,406	18.4%	1,383	16.1%	+1.7%
(Share-based payment expenses)	(320)	(4.2%)	(320)	(3.7%)	(+0.0%)
Operating Profit	1,853	24.3%	1,528	17.8%	+21.3%

Service Results (Green / Wevox)

In the fourth quarter, People Tech sales were 1,991 million yen, up 7.6% year on year, with Green at 1,064 million yen (△9.1% YoY) and Wevox at 915 million yen (+38.0% YoY). Quarterly operating profit was 514 million yen, up 0.6% year on year, with an operating profit margin of 25.8%.

Item (Million yen)	FY2025 Q4	FY2024 Q4	YoY	FY2025 Q3	QoQ
Sales: People Tech	1,991	1,850	+7.6%	2,079	△4.2%
Sales: Green	1,064	1,171	△9.1%	1,245	△14.5%
Sales: Wevox	915	663	+38.0%	820	+11.6%
Sales: Other	12	16	△25.0%	14	△14.3%
Operating Expenses: People Tech	1,477	1,367	+8.0%	1,426	+3.6%
Operating Profit	514	511	+0.6%	653	△21.3%
Operating Profit Margin	25.8%	22.7%	+3.1pt	31.4%	△5.6pt

FY2026 Forecast

For FY2026 the company states that, in addition to the continued improvement of its products including Green AI, it will incrementally strengthen advertising for renewed growth, that Green x Quol aims to create the optimal and ideal matching experience for people and companies and acquire market share, and that Wevox aims for approximately 30% sales growth for the second consecutive term through enhanced value-added services via its AI agent features and substantial revenue contributions from SMBC Wevox. Quol is a provisional name, with the final product name to be determined.

Item (Million yen)	FY2026 Forecast	FY2025 (Actual)	Variance	%
Sales	8,600	7,634	+966	+12.7%
Sales: Green	4,430	4,425	+5	+0.1%
Sales: Wevox	4,125	3,154	+971	+30.8%
Sales: Other	45	55	△10	△18.2%
Operating Expenses	7,500	5,781	+1,719	+29.7%
Cost of sales	73	253	△180	△71.1%
Green Ad	2,580	2,284	+296	+13.0%
Wevox Ad	762	436	+326	+74.8%
Personnel Cost	1,984	1,406	+578	+41.1%
(Share-based payment expenses)	(372)	(320)	(+52)	(+16.3%)
Operating Profit	1,100	1,853	△753	△40.6%
(Operating profit before share-based payment expenses)	(1,472)	(2,173)	(△701)	(△32.3%)
Operating Profit Margin (%)	12.8%	24.3%	–	△11.5pt
(Operating profit margin before share-based payment expenses)	(17.1%)	(28.5%)	(-)	(△11.5pt)
Dividend Forecast (per share)	33 yen	31 yen	+2 yen	+6.5%

Growth Investment and Capital Policy

To achieve sustained sales growth with a CAGR exceeding +30% from FY2027 onwards, the company plans strategic investments in advertising, human capital and new feature development in FY2026. On capital policy, the materials state that Atrae has sufficient equity capital to realize future growth investments and will balance growth investments that contribute to increasing corporate value with shareholder returns. The target level of ROE/ROIC is 20% or more; FY2025 actual figures were ROE 26.0% and ROIC 25.7%, and the FY2026 forecast is ROE 17.3% and ROIC 15.7%. The materials note that these levels exceed the Prime Market’s average ROE for all industries (9.26%) and the average ROE for non-manufacturing industries (10.45%), citing Japan Exchange Group, Inc.’s “Financial Results Summary” for fiscal year 2024 (April 2024 to March 2025).

Item (Million yen)	FY2025 Actual	FY2026 Forecast
Sales: Wevox	3,154	4,125
Sales: Green	4,425	4,430
Cost of sales	253	73
Green Ad	2,284	2,580
Wevox Ad	436	762
Personnel Cost (excluding share-based payment expenses)	1,086	1,612
Share-based payment expenses	320	372
Other	1,402	2,101
Operating Profit	1,853	1,100

Shareholder Returns

The total payout ratio for FY2025, combining the acquisition of treasury shares and year-end dividends, was 154.7%. For FY2026, a year-end dividend of 33 yen per share has been announced, an increase of 2 yen from the 31 yen per share paid in FY2025. To improve the flexibility and agility of capital policy and to enhance the distributable amount, the stated capital was reduced to 500 million yen and the capital reserves to 125 million yen, with approximately 2.1 billion yen transferred to other capital surplus; the materials describe this as an inter-account transfer with no change to net assets.

To achieve disclosure of financial statements at least three weeks prior to the shareholders’ meeting, the record date for voting rights and the record date for dividends will be changed from September 30 to October 31. The timeline in the materials shows the FY2026 record date moving to October 31, 2026, with the Annual Securities Report in December 2026 and the shareholders’ meeting in January 2027. The materials note that this slide is based on the assumption that the proposed amendment to the articles of incorporation will be approved as originally proposed at the 22nd shareholders’ meeting scheduled for December 19, 2025.

Human Capital and Shareholding Structure

Under the heading of proactive investment in human capital including share-based compensation, the materials disclose a turnover rate of 6.5% in FY2023, 6.4% in FY2024 and 6.4% in FY2025; a mid-term average engagement score of 89, 89 and 87 respectively; and 48 hours spent discussing organization building by all employees in each of the three years. FY2026 will see a base salary increase of approximately 15% for employees, and the average annual income per employee is 8.829 million yen (including share-based compensation for FY2024). The company is also considering the introduction of a Retirement RS for employees excluding executives, alongside tax-qualified share options and an employee stock ownership association with matching contributions.

On the shareholding structure, institutional investors decreased by 8.9 percentage points while individual investors increased by 7.4 percentage points between FY2025 Q2 and FY2025 Q4. Individuals accounted for 34.4% as of FY2025 Q4 (27.0% as of FY2025 Q2), the founder 36.9% (35.6%), foreign corporations 13.1% (18.3%), trust banks 12.1% (15.8%) and financial instruments business operators 3.1% (2.8%).

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.