Insource (6200): FY2025 Results Summary — Record Results as DX and Generative AI Training Lift Operating Profit 21.1%

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

Note: Insource labels the fiscal year ended September 30, 2025 as “FY24” and the current year ending September 30, 2026 as “FY25”; the labels used in the text and tables below follow the company’s materials. Insource Co., Ltd. posted record-high results for FY24 (Oct. 2024 – Sep. 2025), with net sales of 14,510 million yen (+16.3% YoY) and operating profit of 5,978 million yen (+21.1% YoY). Growth was led by large-scale DX training in the On-Site Training Business, lump-sum orders from three local governments, and strong first-half video and e-Learning sales. Alongside the results, the company announced a new three-year business plan, “Road to Next 2028.”

Consolidated Results (Full-Year Actual)

Gross profit rose 16.1% YoY while SG&A expenses grew only 10.8%, producing a 21.1% increase in operating profit and a 1.6pt improvement in the operating profit margin to 41.2%. Net profit increased 23.1% YoY to 4,130 million yen. Against the FY24 full-year forecast (after revision), net sales reached a progress rate of 99.4% (forecast 14,600 million yen), operating profit 99.6% (forecast 6,000 million yen) and net profit 102.0% (forecast 4,050 million yen).

Item (million yen)	FY24 (Actual)	FY23 (Actual)	YoY
Net sales	14,510	12,474	+2,036 (+16.3%)
Gross profit	11,158	9,613	+1,544 (+16.1%)
Gross profit margin	76.9%	77.1%	-0.2pt
SG&A expenses	5,180	4,676	+503 (+10.8%)
Total personnel expenses	4,199	3,746	+452 (+12.1%)
EBITDA	6,166	5,053	+1,113 (+22.0%)
EBITDA margin	42.5%	40.5%	+2.0pt
Operating profit	5,978	4,937	+1,041 (+21.1%)
Operating profit margin	41.2%	39.6%	+1.6pt
Ordinary income	5,997	4,940	+1,056 (+21.4%)
Net profit	4,130	3,355	+774 (+23.1%)

Segment Results

All four businesses grew net sales. In the On-Site Training Business, the number of trainings conducted rose 19.7% YoY to 24,654 and DX-related trainings increased 31.6% YoY to 2,226, while the gross profit margin fell 1.1pt to 78.3% on higher trainer fees and lower unit prices from bulk contracts with local governments. In the Open Seminars Business, the number of attendees rose 15.9% YoY to 159,328, with DX training attendees up 22.7% YoY. In IT Services, Leaf recurring (monthly) revenue grew 30.5% YoY to 1,274 million yen, offsetting a 38.5% decline in Leaf customization sales, and Leaf active users surpassed 5 million (5,018 thousand) at the end of September 2025. Other Businesses grew net sales 22.2% YoY and gross profit 40.2% YoY.

Business	Metric (million yen)	FY24 (Actual)	FY23 (Actual)	YoY
On-Site Training Business	Net sales	6,914	5,884	+17.5%
On-Site Training Business	Gross profit	5,417	4,672	+15.9%
Open Seminars Business	Net sales	3,579	3,060	+17.0%
Open Seminars Business	Gross profit	2,700	2,405	+12.3%
IT Service Business	Net sales	1,929	1,822	+5.9%
IT Service Business	Gross profit	1,483	1,424	+4.1%
Other Businesses	Net sales	2,086	1,707	+22.2%
Other Businesses	Gross profit	1,557	1,110	+40.2%

By client segment, sales to LE (large enterprises with 2,000 or more employees) grew 18.2% YoY to 4,126 million yen on large-scale On-Site Training and Open Seminars smart pack projects and upselling; Public grew 17.1% YoY to 2,826 million yen on bulk contracts from local governments and Leaf recurring sales; MM grew 15.7% YoY to 4,645 million yen and SMB 14.2% YoY to 2,913 million yen. The total number of transaction organizations rose 7.1% YoY to 14,213, and average net sales per client exceeded 1 million yen for the first time at 1,020 thousand yen (+8.6% YoY).

Results by Service Domain

Insource introduced a 16 Service Domain System from 4Q FY24, appointing cross-divisional managers to each domain to drive sales growth. DX service was the fastest-growing major domain in FY24 at +29.4% YoY, followed by Level-Specific Training at +23.7% YoY. For FY25 the company budgets further expansion of DX Services and HR Support, with consulting-driven growth.

Major Domain	FY23 (Actual)	FY24 (Actual)	YoY	FY25 (Budget)	YoY
HR Support	2,438	2,792	+14.5%	3,230	+22.5%
Level-Specific Training	1,821	2,251	+23.7%	2,600	+15.5%
DX service	1,395	1,805	+29.4%	2,400	+32.9%
Recruitment and training for new graduate	1,384	1,598	+15.4%	1,900	+18.9%
Business Skills	1,120	1,241	+10.9%	1,390	+12.0%
Subordinate guidance, Turnover prevention	968	1,050	+8.5%	1,200	+14.2%
Communication	1,010	1,086	+7.6%	1,100	+1.2%
Others (9 domains)	2,338	2,687	+14.9%	2,980	+7.5%

FY25 Forecast

For FY25 the company forecasts net sales of 16,800 million yen (+15.8% YoY) and operating profit of 6,800 million yen (+14.6% YoY), aiming to grow by strengthening Generative AI businesses across education, consulting, infrastructure provision and related services. Total personnel expenses are expected to rise 17.6% YoY as upfront investment in recruitment, and the workforce is targeted to reach 815 employees at the end of September 2026 (+60 YoY), including 42 new graduates joining in April 2026. The company plans to enter new Generative AI businesses such as AI applications, Generative AI utilization platforms and Web consulting (for LLMO). Sales growth of 15.8% is attributed to three factors: expansion of the sales team (3.4%), productivity gains among the existing sales team (8.3%), and enhanced sales strategies and new service offerings (4.1%).

Item (million yen)	FY25 (Forecast)	FY24 (Actual)	YoY
Net sales	16,800	14,510	+15.8%
Gross profit	12,970	11,158	+15.1%
Operating profit	6,800	5,978	+14.6%
Net profit	4,630	4,130	+14.7%
Total personnel expenses	4,940	4,199	+17.6%
Number of employees (people)	815 (target)	755	+60

Shareholder Returns

Insource targets a dividend payout ratio of 50% and a dividend on equity (DOE) ratio of 18%, raised from the previous target of a 40% payout ratio. The dividend per share for FY24 is shown as 25.0 yen, an increase of 5 yen YoY, and the FY25 forecast is 29.5 yen. Under the new three-year plan, 9,200 million yen of the 26,900 million yen capital allocation under the new medium-term management plan (26/9-28/9) is earmarked for shareholder returns.

Item (yen)	FY23	FY24 (plan)	FY25 (forecast)
Cash dividends per share	20.0	25.0	29.5
Dividend payout ratio	50.0%	50.8%	53.5%

Medium-Term Plan: Three-Year Business Plan “Road to Next 2028”

The new three-year plan targets FY27 net sales of 23,400 million yen (+8,890 million yen compared to FY24), operating profit of 9,620 million yen (+3,642 million yen), net profit of 6,820 million yen (+2,690 million yen) and an operating profit margin of 41.1% (+1.8pt), with a net sales CAGR of 17.3% over the three years from 2026 to 2028. DX-related revenue, including Generative AI, is targeted at 9,000 million yen in FY27. The plan’s five policies are: expanding Generative AI support services, strengthening consulting, strengthening content development in all directions, unprecedented aggressive investment, and continuing dividends with a target payout ratio of 50% and DOE of 18%.

Capital resources for the plan period (26/9-28/9) total 26,900 million yen, comprising consolidated operating cash flow of 19,000 million yen and adjusted sales of 7,900 million yen. Allocation is 13,200 million yen to AI and content growth investments (engineers, content development, talent investment and M&A), 9,200 million yen to shareholder returns, 3,600 million yen to financial base enhancement with a target cash balance equivalent to five months of average monthly sales, and 900 million yen to infrastructure investment. On human capital, the company plans to add 300 engineers, content developers and consultants over three years, targeting 1,050 employees by FY27.

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