Bewith,Inc. Q4 FY2025 earnings call

Overall Financial Results: • The 2025 May term recorded lower revenue and lower profit year-over-year, with revenue reaching 98.2% of the January guidance, and operating profit reaching 73.8% of guidance. • Lower operating profit was driven by lower-than-planned revenue, increased SG&A from shareholder benefit expenses due to rising shareholder count, and impairment charges on some sites and software that widened the gap in net income attributable to parent shareholders. • Full-year 2025 May term total revenue was 36.42 billion yen, with operating profit of 1.07 billion yen, a year-over-year decrease of 1.39 billion yen. Q4 2025 operating profit was negative 10 million yen due to one-time expenses for shareholder benefits, new graduate hiring, and layout changes at the Shinjuku site.

Industry Segment Performance: • Public sector: Business volume declined more than expected even after the January guidance revision, missing performance plans. Financial sector new project acquisition was delayed, leading to plan misses. • Lifeline, manufacturing, other, information and communications, and distribution sectors all performed in line with plans.

Operational KPIs: • Total available seats: 7,017. 2,000 employees are eligible for remote work, increased to strengthen BCP. SV and other management headcount is 2,000. Operator headcount is adjusted to match sales volume, and turnover has declined thanks to retention initiatives, keeping staffing stable.

1. Omnia LINK external sales: Full-year 2025 May term revenue was 980 million yen (2.7% of total company revenue of 36.42 billion yen), with a year-over-year increase of 210 million yen. Q4 2025 revenue hit a quarterly record of 290 million yen, reaching 90% of the full-year plan of 1.1 billion yen. Annualized Recurring Revenue (ARR) stood at 1.07 billion yen. Total licenses reached 4,460, with a quarterly record 964 new licenses added in Q4, and an order backlog of 700 licenses scheduled for shipment. ARPU was 20 thousand yen.
2. Contact Center (CC)・BPO: Total year-over-year revenue decreased by 35.8 billion yen, partially offset by 1.54 billion yen in new project gains. Net decline was driven by a 1 billion yen drop in SPOT projects and 3.48 billion yen in contraction of existing projects, mostly in the public and lifeline sectors. Q4 2025 revenue was 9.2 billion yen, up from the previous quarter, supported by seasonal peak demand in the power sector and new projects in finance.

• 2026 May term total revenue is guided at 35.8 billion yen, representing a 1.7% year-over-year decrease, as continued contraction of large public sector projects is expected. Operating profit is guided at 1.15 billion yen, a 7.5% year-over-year increase, with profit concentrated in the second half as restructuring initiatives deliver results. • Omnia LINK external sales are projected to grow 330 million yen year-over-year to 1.3 billion yen. The CC・BPO segment expects a 1.9 billion yen decline from lost large public projects, partially offset by 940 million yen in new project gains. • The 2026 May term end target for Omnia LINK total licenses is 6,000, set as a conservative, achievable target after a period of consistent missed targets. 5,000 licenses are already secured from active and backlog orders, leaving 1,000 additional licenses to gain. • Dividend per share is maintained at 77 yen, unchanged from the 2025 May term, and the shareholder benefit program will continue for the current term. • New product launches for Omnia LINK are planned in 2026 May term, including AI operator functionality and mobile support, which will be used to expand use cases beyond contact centers to sales support and back-office operations. • Preparations for ASEAN market expansion are ongoing, including local partner selection and system localization, with full commercial launch targeted for the following fiscal term.

• Persistent contraction of public sector existing projects has pressured top-line and bottom-line performance, and this contraction is expected to continue through the 2026 May term. • Omnia LINK external sales has a history of consistent missed performance targets, requiring conservative target-setting for the current term. • Profit performance is vulnerable to one-time cost items such as impairment charges, shareholder benefit expenses, and restructuring-related costs.

Q: The 6,000 end-of-term license target for Omnia LINK looks relatively conservative given 5,000 licenses are already secured. Is there upside to beat this target, especially with new product expansions coming online? / A: Management confirms 5,000 licenses are already locked in from current active licenses plus the 700-unit order backlog, so hitting the remaining 1,000 to reach 6,000 is not a high hurdle. While the company will actively work to exceed 6,000, the target was set conservatively to ensure reliability after a streak of missed targets in prior periods.

Q: Fixed cost reduction benefits are expected to start appearing in the second half of 2026 May term. Will cost cutting continue to improve the cost base and support profit into subsequent periods? / A: The cost savings come from the ongoing "Short-term Plan" that includes site restructuring and workforce redeployment. The full benefits of these initiatives will hit in the second half of 2026 May term, with profit planned to be heavily weighted to H2. Improvement will continue into the next fiscal year, as project replacement progresses gradually.