Direct Marketing MiX (7354): FY2025 Results Summary — Operating Profit Up 48.7% as Focus Domains Reach 87.3% of Sales

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

Note: Direct Marketing MiX Inc. closes its books in December, and the materials label the most recently completed full year as FY12/2025 (the fiscal year ended December 31, 2025). Labels in the text and tables below follow the materials.

Direct Marketing MiX Inc. released its Financial Results Briefing (FY12/2025) on February 13, 2026. Sales revenue rose 8.3% YoY to 22.69 billion yen, operating profit rose 48.7% to 2.13 billion yen, profit attributable to owners of parent rose 61.2% to 1.35 billion yen, and EBITDA rose 8.2% to 3.43 billion yen. The Company attributes the profit growth to a higher sales weighting of its three focus domains, optimization of profit structures, and price pass-through in response to rising labor costs. For FY12/2026 the Company plans sales revenue of 24,000 million yen and operating profit of 2,350 million yen, and has raised the dividend forecast to 9.5 yen per share.

Consolidated Results (FY12/2025 Full-Year Actual)

Sales revenue increased 8.3% YoY, driven by sales in the three focus domains. Operating profit rose 48.7% YoY; the materials state that the initial expectation (1.8 billion yen) was exceeded by 118.5% and that optimization of profit structures yielded results. EBITDA increased 8.2% YoY after absorbing special factors (a decrease in depreciation expense). All four headline items came in above the full-year forecast that had been revised on November 14.

(¥ mm)	2024/12 Full year Results	2025/12 Full year Results	YoY change (%)	Full-year earnings forecast (revised on Nov. 14)	Compared to forecast (change)
Sale revenue	20,952	22,694	+1,742 (+8.3%)	22,500	+194 (+0.9%)
Operating profit	1,434	2,133	+699 (+48.7%)	2,100	+33 (+1.6%)
Operating profit margin	6.8%	9.4%	+2.6pt	9.3%	+0.1pt
Profit attributable to owners of parent	834	1,345	+510 (+61.2%)	1,275	+70 (+5.5%)
EBITDA*1	3,167	3,426	+258 (+8.2%)	3,391	+34 (+1.0%)

*1 EBITDA = operating profit + depreciation + amortization + impairment and disposal losses on fixed assets. On the balance sheet, total assets grew to 27,417 million yen (+2,449) and goodwill to 13,063 million yen (+1,673) in conjunction with the execution of two M&A transactions, while non-current liabilities rose to 6,436 million yen (+1,338) as a result of securing financing for the M&A transactions and refinancing a syndicated loan. Operating cash flow was 2,803 million yen (+801) and free cash flow was 953 million yen (947 lower than the prior year).

Segment Results

In the Marketing business, sales revenue increased by 2,288 million yen YoY (+12.1%) and operating profit increased by 987 million yen YoY (+42.6%). In the On-site business, sales revenue was down 445 million yen YoY (-16.4%) while operating profit increased by 30 million yen YoY (+58.7%). Figures on this slide include inter-segment transactions.

Segment	Metric	2024/12	2025/12
Marketing business	Sales revenue (¥ mm)	18,870	21,158
Marketing business	Operating profit (¥ mm)	2,316	3,303
Marketing business	OP margin	12.3%	15.6%
On-site business	Sales revenue (¥ mm)	2,711	2,266
On-site business	Operating profit (¥ mm)	50	80
On-site business	OP margin	1.9%	3.5%

Business Domains and the Three Focus Domains

The materials state that the sales ratio for the three focus domains — outbound, hybrid and DX fulfillment — increased by 7.1 points YoY to 87.3%, expanding to account for approximately 90% of total sales. Outbound sales revenue increased 5.1% YoY on a recovery trend in the telecom. and infrastructure sector and deeper engagement in existing projects. Hybrid sales revenue grew 30.4% YoY, exceeding the target set at the time of the VISION 500 announcement by 114.8%. DX fulfillment grew 25.0% YoY as BPO needs around DX services such as financial settlement and identity verification were captured.

Business domain	Share of sales FY12/2024	Share of sales FY12/2025	Sales FY12/2025 (¥ mm)	Sales growth rate	Sales FY12/2026 (¥ mm)
1. Outbound	37.1%	35.9%	8,158	+5.1%	8,400
2. Hybrid	32.2%	38.7%	8,784	+30.4%	10,000
3. DX fulfillment	10.9%	12.6%	2,861	+25.0%	3,200
4. Inbound	6.0%	1.7%	–	–	–
5. Research/other BPO	3.9%	4.2%	–	–	–
6. On-site	9.9%	6.8%	–	–	–

Within the outbound domain, telecom. and infrastructure sales were 6,019 in 2024/12 and 6,304 in 2025/12 (+4.7%), with other sectors at 1,746 and 1,854 (+6.2%); the 2026/12 plan is 6,450 and 1,950. Within the hybrid domain, telecom. and infrastructure sales were 4,329 and 5,291 (+22.2%) and other sectors 2,407 and 3,493 (+45.1%); the 2026/12 plan is 6,000 and 4,000. Figures are in millions of yen.

FY12/2026 Forecast

For FY12/2026 the Company plans sales revenue of 24,000 million yen (+5.8% YoY), citing growth in the three focus domains plus a full-year contribution from the M&A implemented in 2025, and double-digit operating profit growth of 10.2%. Profit attributable to owners of parent is forecast at 1,750 million yen (+30.2%); the materials note that the effective tax rate will temporarily decline in FY12/2026 due to transient factors related to the transfer of carried-forward losses in conjunction with reorganization of a group company.

(¥ mm)	2025/12 Results	2026/12 Full-year earnings forecast	YoY	Rate of change
Sales revenue	22,694	24,000	+1,306	+5.8%
Operating profit	2,133	2,350	+217	+10.2%
Operating profit margin	9.4%	9.8%	–	+0.4pt
Profit before tax	2,073	2,250	+177	+8.5%
Profit attributable to owners of parent	1,345	1,750	+405	+30.2%
EBITDA*1	3,426	3,679	+254	+7.4%
Dividends per share	7.0 yen	9.5 yen	+2.5 yen	+35.7%

Shareholder Returns

The initial dividend forecast for FY12/2025 was revised upward from 6.0 yen to 7.0 yen per share, and in light of the substantial increase in net income the Company plans to raise the FY12/2026 dividend further to 9.5 yen per share. Alongside the dividend, a stock repurchase of up to 1,500,000 shares (a maximum of 300,000,000 yen), equal to 3.23% of the total number of issued shares excluding treasury shares, will be conducted between February 16 and May 29, 2026 through market purchases on the Tokyo Stock Exchange. The materials state that by implementing stock repurchases (22.3%) in addition to a payout ratio of 24.2%, a total return ratio of approximately 50% will be achieved; the total return ratio shown is 25.0% for 2024/12 and 46.5% for 2025/12. Under its capital allocation policy the Company states it will strive to achieve a consolidated payout ratio of 30% at an early stage, with the target for the total return ratio maintained at 40%.

Item	2023/12	2024/12	2025/12	2026/12
Dividends per share (DPS)	3.0 yen	4.5 yen	7.0 yen	9.5 yen
Earnings per share (EPS)	6.7 yen	18.0 yen	29.0 yen	37.7 yen (Forecast EPS)
Return on equity (ROE)	2.2%	6.2%	9.4%	Approx.11.2%
Payout ratio	–	24.9%	24.2%	25.2%

Medium- to Long-term Management Vision (DmMiX Vision 500)

The Company announced the formulation of its Medium- to Long-term Management Vision on March 31, 2025, and seeks to achieve sales revenue of 50,000 million yen and operating profit of 5,000 million yen in FY12/2030, with dividends of over 27.0 yen and a payout ratio of over 40%. On capital efficiency, the Company aims to achieve ROE of at least 10% and to increase it to the 15%–20% range through further improvements in capital efficiency. The materials state that shareholder returns have been approached cautiously until now, but that early achievement of a dividend payout ratio in excess of 40% is now in sight, provided that the recovery in profits continues.

Topics: M&A Executed in FY12/2025

SAIYOUBU Co., Ltd. and Moneypedia Co., Ltd. became wholly-owned subsidiaries in October 2025. SAIYOUBU operates a recruitment process outsourcing (RPO) business focused on specialized fields such as dentistry, medicine, beauty, nursing care and childcare, using a monthly flat-rate pricing model; its sales revenue rose from 65 in FY8/2022 to 443 in FY8/2025 (millions of yen), a CAGR of 90% over FY8/2022 to FY8/2025. Moneypedia develops and operates web services that use AI to match users who have financial concerns to optimal financial planners; its sales revenue moved from 83 in 21/12 to 277 in 24/12 (millions of yen). The materials state that the business portfolio has expanded from the existing sales BPO business to also include RPO, and that the existing insurance area has been expanded to the influencer marketing area.

In the operating base, the number of operating staff in the marketing business was 3,493 in the fourth quarter of 2025/12 with a capacity cost ratio of 71.4%, versus 3,390 and 73.3% in the fourth quarter of 2024/12. The Company also reports acquiring approximately 30 new clients each year with a contract renewal rate that exceeds 95%, and 262 client companies as of FY12/2025.

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.