AMIYA Corporation Q4 FY2025 earnings call

Core Company Identity and Competitive Advantage

• Amiya positions itself as a domestic Japanese cyber security vendor leveraging AI and cloud technology, with core strengths of high profit margins and stable recurring revenue as a domestic subscription vendor.
• In SIEM and SOC/CSIRT segments, Amiya holds strong competitive position against high-priced overseas products from North American vendors, with strong price competitiveness that supports high market presence in Japan.
• Churn for both core subscription products (ALog and Network All Cloud) is maintained at the 1% level, which is extremely low compared to the historical one-time license model.
• The company has delivered 12 consecutive quarters of beating profit forecasts, with a core operating principle of maintaining disciplined budget execution and avoiding unexpected increases in sales promotion or personnel costs.

2025 December Term Full Year Financial Performance

• The company achieved 5 consecutive years of revenue and profit growth since IPO, marking a clear shift in business quality after the full subscription conversion of its flagship product ALog completed faster than expected. The company has crossed the "subscription valley" and entered a phase of steady profit accumulation.
• Full year 2025 revenue increased 24.5% YoY to 5.936 billion yen (from 4.767 billion yen in 2024).
• Operating income nearly doubled YoY to 1.051 billion yen (from 526 million yen in 2024), beating the initial full year forecast of 600 million yen with a 175.3% achievement rate. Operating margin improved from 11% to approximately 18%.
• Net income nearly doubled YoY to 751 million yen (from 384 million yen in 2024), EPS increased 44.15 yen YoY to 90.84 yen, and ROE rose 10.7 percentage points to 30.3%.
• Full year company-wide ARR increased 29.3% YoY, and the sales decline period from the subscription transition ended earlier than expected after 16 months, with ALog having fully recovered to its historical sales level by Q4 2025.
• Contract liabilities (subscription advance payments) grew 38.2% YoY to 2.00 billion yen, accounting for approximately half of current liabilities, reflecting the steady cash accumulation characteristic of subscription contracts.
• The Q4 2025 moderate increase in SG&A was within expectations, driven primarily by higher personnel costs from year-end bonuses, as well as increased investment in advertising and R&D for the emerging SASE market.
• After achieving improved stable profitability in 2025, the company initiated dividend payments for the first time and expanded shareholder benefits.

Previous Mid-Term Management Plan Results

• The previous 3-year mid-term plan concluded at the end of 2025, with final results exceeding targets: ARR grew 2.1x, total revenue grew 2x, operating income grew 4x, while SG&A was contained to 1.4x growth, demonstrating that cost growth has remained muted relative to overall business growth.

1. Data Security Business: In Q4 2025 December Term, net sales was 2.48 billion yen, gross profit was 1.418 billion yen, and segment profit was 1.02 billion yen. This segment is led by the fully subscription-converted product ALog, and saw 43.8% YoY ARR growth. Cumulative subscription order volume increased 1.8x YoY, and total orders have grown 150% from pre-conversion levels despite a 7x increase in product pricing over the past 5 years.
2. Network Security Business: In Q4 2025 December Term, net sales was 3.455 billion yen, gross profit was 1.423 billion yen, and segment profit was 1.00 billion yen. Combined with the Data Security Business, total gross profit across both segments is nearly 3.00 billion yen. The core offering of this segment is the cloud-based Network All Cloud service, and overall company ARR growth across both segments is nearly 30% YoY.

• The new 3-year mid-term management plan covers 2026-2028, with a core focus on accelerating growth after the subscription transition has delivered proven profitability. The plan sets a two-tier target structure: a mandatory baseline achievable target, plus an upside target driven by partnership and new business expansion.
• The company targets growing total SaaS subscription ARR to approximately 7.2 billion yen over the 3-year plan period.
• SASE (Secure Access Service Edge) is expected to be a key growth driver starting in the 2026 December term. The global SASE market is large and high-growth, with very few domestic Japanese competitors due to high development complexity, and Amiya is one of the few domestic vendors with a fully functional SASE offering, positioning it for significant market share gains.
• Key strategic initiatives for the new mid-term plan include:
  • Pursue M&A to build out a comprehensive cyber security offering, while continuing to enhance functionality for existing products.
  • Strengthen sales promotion, R&D, and domestic hardware manufacturing, and obtain required certifications to serve the public sector, to improve distribution across all Japanese industries including public infrastructure.
  • Expand the security BPO (business process outsourcing) business, which supports end-to-end client security processes including vulnerability assessment and incident response planning, by investing in additional personnel and operational infrastructure to prepare for large-scale business expansion.
  • Actively pursue strategic capital partnerships, including a new partnership with Canon Marketing Japan that will leverage Canon's existing sales network to pursue large-scale OEM partnership opportunities, to build larger business scale.
  • Execute a new capital policy to accelerate growth: the company will raise zero-coupon funding via convertible bonds and warrants, using the company's existing treasury shares to avoid new share issuance, and allocate the raised capital to M&A and existing business expansion to speed up growth.

No explicit discussion of material risks or operational failures was included in the provided transcript.

No question and answer section was included in the provided transcript.