Adways Inc. (2489): FY2025 Results Summary — Operating Profit Up 78.6% Despite Lower Gross Sales

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

Adways Inc. (TSE Standard Market: 2489) reported full-year FY2025 results on February 10, 2026. The company’s fiscal year ends in December, so FY2025 covers the year to the end of December 2025. Gross sales came to JPY 51,302 mn, down JPY 3,312 mn (-6.1%) year on year, while operating profit rose JPY 130 mn (+78.6%) to JPY 297 mn and profit attributable to owners of parent turned positive at JPY 252 mn against a loss of JPY 473 mn in FY2024. All profit lines also exceeded the forecast announced on December 12, 2025.

Consolidated Results (Full-Year Actual)

Gross sales declined on lower domestic agency sales, but gross profit fell only 2.4% and SG&A expenses were reduced by 3.8%, lifting every profit line. The materials state a gross profit margin of 19.7% (+0.7 points), an SG&A to sales ratio of 19.1% (+0.5 points), an operating profit margin of 0.6% (+0.3 points), an ordinary profit margin of 1.2% (+0.3 points) and a profit attributable to owners of parent margin of 0.5%. Note that, per the materials, these margins are expressed as a percentage of gross sales, and gross sales are not figures audited by the accounting auditor.

Item (JPY mn)	FY2025 Result	FY2024 Result	Change	Change (%)
Gross sales	51,302	54,615	-3,312	-6.1%
Net sales	12,219	12,684	-465	-3.7%
Gross profit	10,097	10,351	-253	-2.4%
SG&A expenses	9,800	10,184	-384	-3.8%
Operating profit	297	166	+130	+78.6%
Ordinary profit	607	503	+103	+20.5%
Profit attributable to owners of parent	252	-473	+726	–

For FY2024, profit attributable to owners of parent was a negative figure, so the ratio of change is not presented in the materials.

Against the FY2025 forecast announced on December 12, 2025, gross sales came in slightly short while net sales and all profit lines beat the plan. The company attributes this to UNICORN, where net sales exceeded the forecast on higher-than-expected orders for brand advertising; the resulting increase in gross profit lifted operating profit, ordinary profit and profit attributable to owners of parent above their respective forecasts.

Item (JPY mn)	FY2025 Forecast (Announced Dec 12, 2025)	FY2025 Result (cumulative)	Change	Achievement ratio
Gross sales (Reference)	51,600	51,302	-297	99.4%
Net sales	12,000	12,219	+219	101.8%
Operating profit	150	297	+147	198.2%
Ordinary profit	450	607	+157	134.9%
Profit attributable to owners of parent	185	252	+67	136.7%

Segment Results

Agency Business (Domestic) saw sales decrease due to policy changes at three major clients; new orders are increasing but the growth was not sufficient to offset the decline. In Agency Business (Overseas), app advertising in Taiwan performed well and, in addition to LINE, sales of search advertising on app stores increased. In the Ad Platform Business, UNICORN grew significantly across both brand and app genres, while affiliate advertising decreased due to factors such as budget curbs and policy changes at major clients in the financial genre.

Segment	FY2025 Segment Gross Sales (JPY mn)	YoY Change (JPY mn)	YoY Change (%)
Agency Business (Domestic)	18,441	-4,083	-18.1%
Agency Business (Overseas)	7,920	+634	+8.7%
Ad Platform Business	22,441	-132	-0.6%

Within the Ad Platform Business, the materials highlight UNICORN’s fourth-quarter performance: gross sales of JPY 2,128 mn (+JPY 215 mn, +11.3% YoY), gross profit of JPY 975 mn (+JPY 210 mn, +27.6%) and operating profit of JPY 366 mn (+JPY 99 mn, +37.1%), each described as a record high.

FY2026 Forecast

For FY2026 the company forecasts lower gross sales and net sales but sharply higher profits. As noted in the materials, a share transfer of certain consolidated subsidiaries is scheduled and the FY2026 forecast reflects the projected impact of that transfer.

Item (JPY mn)	FY2026 Forecast	FY2025 Results	Change	Change (%)
Gross Sales (Reference)	48,000	51,302	-3,302	-6.4%
Net Sales	11,400	12,219	-819	-6.7%
Operating profit	600	297	+302	+101.9%
Ordinary profit	804	607	+196	+32.4%
Profit attributable to owners of parent	530	252	+277	+109.6%

The materials also present a reference comparison that excludes the consolidated subsidiaries scheduled for share transfer. On that basis, FY2025 reference results are gross sales of JPY 48,323 mn, net sales of JPY 11,624 mn, operating profit of JPY 357 mn, ordinary profit of JPY 642 mn and profit attributable to owners of parent of JPY 350 mn, making the FY2026 forecast a change of -0.7% in gross sales, -1.9% in net sales, +68.0% in operating profit, +25.2% in ordinary profit and +51.3% in profit attributable to owners of parent. The company notes that these FY2025 reference results also exclude certain non-transfer businesses that cannot be fully separated by segment. In the domestic agency business and a portion of the ad platform business, net sales are expected to decrease slightly, while improved profitability and control of SG&A expenses are projected to raise all profit lines.

Shareholder Returns

The materials state a FY2025 dividend forecast of JPY 6.42 per share, an increase of JPY 0.07 from the previous forecast of JPY 6.35 per share. Under the regular dividend policy disclosed on February 10, 2025, the company aims to make dividend payouts for the three years from FY2025 to FY2027 at a DOE (dividend on equity ratio) of 2% or higher as a guide, while keeping uninterrupted and stable dividend payouts and striving to enhance corporate value over the medium to long term through business growth and improvement in capital efficiency. The company notes the dividend policy may be changed due to a significant fluctuation in business performance, large-scale M&A or other change in the operating environment. A dividend forecast for FY2026 cannot be confirmed from the materials.

Adways is also launching a shareholder benefit program, beginning with shareholders recorded in the shareholder register as of December 31, 2025. Holders of 10,000-19,999 shares receive benefits equivalent to JPY 220,000, holders of 20,000-29,999 shares benefits equivalent to JPY 660,000, and holders of 30,000 shares or more benefits equivalent to JPY 1,320,000, consisting of Old Rookie Cafe and Old Rookie Sauna VIP memberships and, for the upper tiers, stays in a special room at Old Rookie Sauna Hotel. The initial validity period runs from April 1, 2026 to the end of March 2027.

Topics

On December 12, 2025 Adways received approval from the Tokyo Stock Exchange for a change of its market classification, and effective December 19, 2025 its shares moved from the TSE Prime Market to the TSE Standard Market; among the continued listing criteria for the Prime Market, the company did not satisfy the requirement for market capitalization of tradable shares. On December 16, 2025 the board resolved to execute a memorandum of understanding with Ureru Net Advertising Group Co., Ltd. concerning the transfer of all shares of ADWAYS CHINA CO., LTD. and ADWAYS ASIA HOLDINGS LIMITED. The share transfer is scheduled for April 2026, and the subsidiaries are scheduled to be excluded from consolidated subsidiaries from the second quarter of the fiscal year ending December 31, 2026; the business subject to the transfer is the advertising business, while the EC business will continue within the Group. As of the disclosure, a share transfer agreement had not been executed and the terms remained under discussion.

Other initiatives described in the materials include the establishment of Synacrew Co. Ltd. jointly with ITOCHU Group’s POCKET CARD CO., LTD., the release of “Agent MALOOK” (an AI-powered manga advertising creative optimization solution), the release of “O3 TRUCK” (an AI-driven operational ad truck), the launch of “UNICORN FOR : Publisher” and a UNICORN white-label DSP, and certification as a partner of Momentum’s Platform Certification Program. Group employees totaled 992 at the end of December 2025, including temporary workers.

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.