ROBOT PAYMENT INC. Q3 FY2025 earnings call

Product Updates:

• サブスクペイ Professional added enhanced communication tool integration, specifically new seamless LINE connectivity to allow customers to communicate directly with end-users through the platform.
• ファクタリング for SaaS launched AI-powered credit underwriting using Gemini, which has shortened credit review times and improved the speed of service delivery to customers.
• Three new services are nearing commercialization: revenue-based financing, a collection dunning service, and an international money transfer product. Management expects to make a formal public launch announcement for these services soon.

Strategic & Organizational Initiatives:

• Created a dedicated AI research team within the CTO's office to expand AI usage, with the dual goals of reducing internal operational workload and integrating AI functionality into core products.
• Implemented a new share purchase loan program as an enhanced employee benefits offering, to address employee demand to buy more company stock at lower price levels that existing employee stock ownership plans could not support. The program has already seen usage by employees, and employee stock plan participation rates continue to increase, aligning all staff with the goal of improving corporate value.
• Management is expanding engagement with overseas institutional investors, and recently completed a investor roadshow in Singapore. A company-hosted investor fan meeting will be held on December 11, 2025, which will include detailed discussion of the company's long-term strategy, a talk session with prominent individual investors, and opportunities for direct Q&A with executives.

Balance Sheet & Capital Structure:

• A share repurchase program announced in February 2025 slightly reduced shareholders' equity in Q1 and Q2, but cumulative YTD profit through Q3 has restored shareholders' equity to a net positive increase compared to the end of last year, with continued growth in retained equity.
• The company's balance sheet includes customer deposit balances held due to timing mismatches between receipt of customer sales proceeds from banks/card networks and subsequent payout to customers, which inflates reported total assets. The reported equity ratio is 15.0%, but the adjusted equity ratio (excluding the impact of customer deposits) is 63.4%, which management considers a very healthy capital position.
• Deposits from this timing mismatch also leave the company with very high liquidity.

Expense Management:

• Following the 2023 medium-term management plan, the company continues to allocate expenses efficiently. Advertising spend remained at the same level as the prior quarter, with continued focus on cost-effective marketing.
• Salary expense increased slightly sequentially, in line with planned growth, driven by expansion of customer success and support teams to accommodate growing customer numbers. Enhanced customer support and additional optional service offerings have enabled higher AUP and maintained low churn rates.
• Development spending continued at the same level as the prior quarter, with a focus on improving development efficiency through internalization and AI-powered productivity tools, while prioritizing productivity-focused feature development and quality improvement.
• Total headcount increased slightly after Q2, entirely driven by expanded customer success and support teams.

Shareholder Returns:

• The company will implement a 25th anniversary commemorative shareholder benefit to thank shareholders for their long-term support, and demonstrate management's commitment to shareholder returns. Annual recurring revenue (ARR) surpassed 3.3 billion yen, and customer AUP hit a new all-time high, supporting continued sustainable revenue growth.

Company-wide: Total Q3 2025 revenue is 834 million yen, up 16.8% year-over-year. Recurring revenue drove consistent sequential quarterly revenue growth. Q3 2025 operating profit hit a new all-time high for the third quarter, up 47.1% year-over-year. Accumulated full-year-to-date revenue is 3.235 billion yen, up 17.1% year-over-year, and accumulated full-year-to-date operating profit is 0.7 billion yen, up 45.9% year-over-year. サブスクペイ: Q3 revenue grew 17.0% year-over-year, supported by steady growth in payment processing volume and continued rising customer average unit price (AUP). Customer AUP hit a new all-time high after slight sequential growth from Q2, and total customer accounts grew steadily. Payment processing volume continued growing smoothly; the impact from mandatory 3D Secure adoption (disclosed in Q2) has fully passed, and processing volumes have bottomed out on a monthly basis and stabilized at flat levels since Q2, with recovery expected going forward. 請求管理ロボ: Q3 revenue grew 17.0% year-over-year, supported by continued rising customer AUP and steady new customer acquisition. Both customer AUP and total customer accounts grew steadily, and total billed amount and issued invoice volumes both increased steadily year-over-year. Key milestones: Cumulative total billed amount through 請求管理ロボ exceeded 3 trillion yen, and net paid active accounts (net of cancellations) surpassed 1,000 accounts in October 2025.

• Management upwardly revised full-year 2025 revenue and operating profit guidance for the second time, after an initial upward revision in August after Q2 results, based on stronger-than-expected performance through the first three quarters.
• Management upwardly revised full-year 2025 dividend guidance for the second time: the initial guidance was 20 yen per share, revised to 22 yen per share after Q2, and now revised again to 24 yen per share following stronger Q3 profit.

No material risks or operational failures were discussed in the provided transcript.

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