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DRAFT, Ordinary Profit Forecast for the Fiscal Year Revised Downward to an Unexpected 21% Decrease, Postponed Dividend for This Fiscal Year

Thu Aug 14, 2025 4:15 pm JST Earnings

5070 DRAFT Inc. 【J-GAAP】

Earnings Report

DRAFT Inc. <5070> [TSE Growth] announced its financial results after the market closed on August 14th (16:15). The consolidated ordinary profit/loss for the cumulative second quarter of the fiscal year ending December 2025 (January to June) turned into a loss of 0.71 billion yen (compared to a profit of 0.55 billion yen in the same period last year), further increasing the deficit beyond the forecast of a loss of 0.28 billion yen.

In addition, the full-year forecast for consolidated ordinary profit has decreased 27.8%, from the previous forecast of 1.11 billion yen to 0.80 billion yen (compared to 1.01 billion yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 21.2% decrease in profit.

Based on the first-half performance announced by the company and the full-year plan, our calculation indicates that the consolidated ordinary profit for the July to December period (second half) is expected to surge 3.3 times that of the same period last year, reaching 1.51 billion yen.

At the same time, In conjunction with a Tender Offer Bid (TOB), the company has decided to forgo the year-end lump-sum dividend of 14 yen for the current fiscal year.

In the most recent three-month period, from April to June (2Q), the consolidated ordinary profit/loss turned to a loss of 0.37 billion yen (compared to a profit of 0.27 billion yen in the same period last year). The operating profit/loss margin drastically worsened from 7.1% in the same period last year to -21.2%.

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Actual Results

Accumulated Results 2nd Quarter
Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Progress Rate vs. First Half Announce Accounting Standards
Jan - Jun, 2023 3,905 -96 -112 -112 -11.2 ー Aug 14, 2023 J-GAAP
Jan - Jun, 2024 6,685 579 559 342 34.2 55.0 Aug 13, 2024 J-GAAP
Jan - Jun, 2025 3,174 -707 -713 -491 -48.9 ー Aug 14, 2025 J-GAAP
YoY -52.5% － － － －

First Half Results vs. Previous Guidance

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Jan - Jun, 2025 Guidance 4,600 -260 -285 -296 -29.5 0 Feb 14, 2025 J-GAAP
Jan - Jun, 2025 Results 3,174 -707 -713 -491 -48.9 0 Aug 14, 2025 J-GAAP
Revision Rate -31.0% -171.9% -150.2% -65.9% -66.1%

Guidance Update

Full Year Update

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Dec, 2025 Prev 13,300 1,150 1,110 670 66.4 14 Feb 14, 2025 J-GAAP
Dec, 2025 New 12,897 841 801 492 48.8 0 Aug 14, 2025 J-GAAP
Revision Rate -3.0% -26.9% -27.8% -26.6% -26.6%

Current Period Guidance

Second Half Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Jul - Dec, 2024 5,591 443 458 304 30.3 12 Feb 14, 2025 J-GAAP
Jul - Dec, 2025 Guidance 9,723 1,548 1,514 983 97.4 0 Aug 14, 2025 J-GAAP
YoY +73.9% +249.4% +230.6% +223.4% +221.9%

Current Period Guidance

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Dec, 2023 10,702 870 848 516 51.4 6 Feb 13, 2024 J-GAAP
Dec, 2024 12,276 1,022 1,017 646 64.3 12 Feb 14, 2025 J-GAAP
Dec, 2025 Guidance 12,897 841 801 492 48.8 0 Aug 14, 2025 J-GAAP
YoY +5.1% -17.7% -21.2% -23.8% -24.2%

Quarterly Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Operating Profit Margin Announce Accounting Standards
Apr - Jun, 2024 3,908 277 270 157 15.7 7.1 Aug 13, 2024 J-GAAP
Jul - Sep, 2024 2,986 215 221 127 12.7 7.2 Nov 12, 2024 J-GAAP
Oct - Dec, 2024 2,605 228 237 177 17.6 8.8 Feb 14, 2025 J-GAAP
Jan - Mar, 2025 1,395 -329 -334 -222 -22.1 -23.6 May 13, 2025 J-GAAP
Apr - Jun, 2025 1,779 -378 -379 -269 -26.8 -21.2 Aug 14, 2025 J-GAAP
YoY -54.5% － － － －

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