Fixstars Corporation (3687): FY2025 Results Summary — Record Revenue and Profit for the Fourth Consecutive Year on Solution Business Growth

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Fixstars Corporation, a software acceleration specialist operating under the tagline “Speed up your AI”, released its financial results presentation for the fiscal year ended September 30, 2025 (FY2025) on November 14, 2025. The company achieved record-high revenue and profit for the fourth consecutive year: revenue rose 20.3% year on year to 9,617 million yen and operating profit rose 11.9% to 2,578 million yen, while profit attributable to owners of parent increased 30.2% to 1,945 million yen. For FY2026 the company expects record-high revenue and profit again, forecasting revenue of 10,300 million yen (+7.1%) and operating profit of 2,600 million yen (+0.8%), and it plans to maintain the dividend at 18 yen per share. All figures are in millions of yen unless otherwise stated.

Consolidated Results (FY2025 Actual)

Driven largely by the strong performance of the core Solution Business, Fixstars achieved growth in both revenue and profit for the fourth consecutive year. Revenue of 9,617 million yen exceeded the forecast of 9,300 million yen by 3.4%, while operating profit of 2,578 million yen came in 0.8% below the 2,600 million yen forecast. The operating profit to revenue ratio was 26.8%, down 2.0pt year on year.

According to the company, fourth-quarter operating income was lower than anticipated, primarily due to the booking of expenses from an increased estimate for head office restoration costs (approx. 57 million yen) and an impairment loss on investment securities held in the CVC business (approx. 232 million yen). Net profit increased significantly year on year, as the tax burden was temporarily reduced (by approximately 180 million yen) due to the liquidation of consolidated subsidiary Sider Corporation in the second quarter.

Item (Millions of yen)	FY2024 Actual	FY2025 Forecast	FY2025 Actual	YoY	Compared to Forecast
Revenue	7,995	9,300	9,617	+20.3%	+3.4%
Operating profit	2,304	2,600	2,578	+11.9%	-0.8%
Operating profit to revenue ratio	28.8%	28.0%	26.8%	-2.0pt	-1.2pt
Profit attributable to owners of parent	1,494	1,900	1,945	+30.2%	+2.4%
Net profit margin	18.7%	20.4%	20.2%	+1.5pt	-0.2pt

Segment Results

Fixstars reports two main segments: the Solution Business (software acceleration services) and the SaaS Business. In the Solution Business, high demand for software acceleration services, particularly in the automotive and semiconductor industries, drove growth, and the company continued and deepened efforts to build a recurring revenue model. Third-quarter revenue declined for seasonal reasons, and the company achieved record-high quarterly revenue in the fourth quarter, with Solution Business revenue of 2,416 million yen and SaaS Business revenue of 127 million yen.

Segment revenue (Millions of yen)	1Q	2Q	3Q	4Q
Solution Business — FY2025 (2025/9)	2,223	2,331	2,199	2,416
Solution Business — FY2024 (2024/9)	1,781	1,958	1,857	2,082
SaaS Business — FY2025 (2025/9)	96	132	90	127
SaaS Business — FY2024 (2024/9)	72	93	58	90

On the profit side, the company generated stable revenue in the Solution Business while continuing to make aggressive investments in the SaaS Business. Fourth-quarter operating profit in the Solution Business was 827 million yen, a record-high level comparable to the first and second quarters. The SaaS Business continued to invest in areas such as Generative AI, and its operating loss, excluding the impact of subsidies, remained at a level similar to the third quarter. In addition, an impairment loss on investment securities of approximately 230 million yen was recorded in the CVC business.

Segment operating profit (Millions of yen)	1Q	2Q	3Q	4Q
Solution Business — FY2025 (2025/9)	824	856	728	827
Solution Business — FY2024 (2024/9)	572	692	487	705
SaaS Business — FY2025 (2025/9)	(86)	(91)	(144)	(101)
SaaS Business — FY2024 (2024/9)	(47)	(38)	(105)	39

As part of its medium-term business strategy, Fixstars is strengthening initiatives to expand recurring revenue, promoting its core SaaS products — Fixstars Amplify, Fixstars AIBooster and Fixstars AIStation — in collaboration with various organizations within its Solution Company. Recurring revenue in the SaaS Business was 100, 127, 98 and 124 million yen in the first through fourth quarters of FY2025, compared with 42, 51, 25 and 69 million yen in FY2024. The company notes that most of its clients’ R&D ended in the second quarter, which temporarily affected Amplify’s revenue, and that recurring revenue recovered from the third-quarter dip to a level equivalent to the second quarter and has returned to a growth trajectory.

R&D was expanded in AI-related projects, and in quantum computing the company leveraged subsidies from sources such as NEDO to reduce cost burdens. The consolidated number of employees stood at 334 as of September 2025. Although the net increase in employees finished below expectations due to a changing hiring environment, the total number of engineers, including partners, ended above the company’s projections, and the company significantly increased wages in FY2026 for competitive talent acquisition.

FY2026 Forecast

For FY2026 (fiscal year ending September 2026) Fixstars expects record-high revenue and profit, with revenue of 10,300 million yen (+7.1%) and operating profit of 2,600 million yen (+0.8%). The company describes FY2026 as a foundational year for future growth, resulting in modest growth, as it prioritizes resources for SaaS product development and faces profit pressure from its office relocation and significant wage hikes. Profit attributable to owners of parent is forecast to decline 17.8% to 1,600 million yen, reflecting the absence of the prior year’s one-time gain from the subsidiary liquidation and special losses related to the headquarters relocation.

Item (Millions of yen)	FY2025 Actual	FY2026 Forecast	YoY
Revenue	9,617	10,300	+7.1%
Operating profit	2,578	2,600	+0.8%
Operating profit to revenue ratio	26.8%	25.2%	-1.6pt
Profit attributable to owners of parent	1,945	1,600	-17.8%
Net profit margin	20.2%	15.5%	-4.7pt
EPS	60.34 yen	49.60 yen	-17.8%
Dividend per share	18 yen	18 yen	+0 yen

Shareholder Returns

The dividend per share for FY2025 is 18 yen, subject to approval at the Annual General Meeting of Shareholders to be held on December 17, 2025. Although the company targets a 30% consolidated dividend payout ratio, it plans to maintain the FY2026 dividend at the same 18 yen per share as the previous year due to the temporary decrease in earnings.

Medium-Term Business Plan and Business Topics

Under its medium-term business plan of “Accelerate software” + “Operate accelerated software”, Fixstars aims to keep growing its main software outsourcing business while expanding recurring revenue by providing accelerated software execution environments on the cloud and on edge devices. Toward its medium-term management vision, the company intends to accelerate IP-driven growth in AI and quantum computing leveraging its core acceleration technology, to expand recurring revenue by strengthening collaboration between the Solution and SaaS businesses, and to continue developing talent with expertise in both “technology” and “management”.

Among product topics, the company launched “Amplify AE v1.0”, a major update to the Fixstars Amplify Annealing Engine with dramatically improved performance for combinatorial optimization, as well as an on-premise solution of Fixstars Amplify. For Fixstars AIBooster, it launched the latest version featuring autonomous optimization for edge AI and a new SaaS version of performance observability, while focusing adoption on the automotive industry. For Fixstars AIStation, it launched a rental service equipped with the latest LLM/AI models and high-performance GPUs. In the AI-assisted breast cancer diagnosis business, “METIS Eye” is now in service at the Keio University Center for Preventive Medicine, and the company is in negotiations with multiple medical institutions to introduce it.

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