Record-High Operating Profit for the First Half
Accelerating Growth Strategies for Both Businesses under a De Facto Independent Management Structure
During 1H FY2025, we achieved robust growth in our Domestic debugging services, buoyed by the launch of Nintendo Switch 2, and steadily secured new projects in our QA solutions services. As a result, both the DH Group and AGEST Group Businesses delivered increased revenue in their core operations. Consolidated net sales for 1H FY2025 were 19,112 million yen (down 4.0% YoY), primarily due to the exclusion of the subsidiary for non-core business sold in Q3 FY2024. In real terms excluding this impact of exclusion, we have steadily achieved the growth of consolidated sales (up 7.0% YoY). On the profit side, growth in our high-margin Domestic debugging services and a shift toward greater profitability in the AGEST Group led to operating profit of 1,438 million yen (up 74.2% YoY). Net income attributable to owners of the parent reached 757 million yen (up 66.5% YoY), despite recording a 299 million yen loss on valuation of investment securities. We are progressing well against our company plan for the first half, and intend to continue driving growth in both businesses to achieve our full-year targets.
Since the beginning of FY2025, we have made significant progress in various initiatives aimed at future growth for both businesses. As previously announced, since May 2023 we have been preparing for the Spin-Off and Listing of AGEST, Inc., and we are now operating as two de facto independent corporate groups. This structure has enabled us to make swift management decisions and focus investments in each business area.
For the DH Group, to acquire global clients, we have expanded solutions by strengthening business resources and promoting alliances with partners. This year, we launched the full scale of “ella” translation service with our unique AI translation engine, and established a new subsidiary in Thailand to enhance our game localization capabilities. We have also rapidly expanded both our solution offerings and geographic reach, such as broadening our services of game development support via a strategic partnership with Singapore entities and making decision to acquire a Canadian QA company to strengthen our debugging services in English.
Meanwhile, the AGEST Group has fully launched its unique AI testing tool “TFACT” in September and begun developing a fully domestic SBOM* tool. We are developing high-value-added services in software testing and cybersecurity, where the market demand is expected to grow, by leveraging our technological strengths.
As such, both businesses are accelerating growth strategies tailored to their respective domains, while these efforts are steadily yielding tangible results. We remain fully commit to maximizing the growth potential of both businesses, and we sincerely appreciate the continued support of our shareholders.
*SBOM: Software Bill of Materials, a list of components and dependencies comprising a software product.
November 6, 2025
President & CEO
Toshiya Tsukushi