Game Debugging Division Drives Strong Performance, Leading to Record High Profit for the Q3 (nine months) FY2025
Achieved Q3 Target and Aiming to Outperform the Full Year’s OP Target
This fiscal year, the launch of the Nintendo Switch 2 has revitalized the console gaming market, resulting in a sharp increase in demand for game debugging. Anticipating this trend, we had prepared more than 600 dedicated Nintendo Switch 2 testing devices from the end of the previous fiscal year, strengthened recruitment and training of testers, and improved resource sharing across testing centers. Through these company-wide efforts, we have built a flexible and agile operational structure capable of meeting our clients’ needs. As a result, we were able to secure a greater number of new projects than initially expected. Quarterly sales from Domestic debugging reached a record high ¥4.0 billion in Q3 (three months), driving the entire Group’s strong sales growth. In the Enterprise domain as well, the favorable market environment—fueled by increased IT investment—enabled us to steadily win new QA solution projects.
Consolidated net sales for Q3 (nine months) FY2025 came in at 29,087 million yen (down 4.4% YoY) due to the deconsolidation of our former subsidiary, identity Inc., which was sold in Q3 FY2024. However, net sales in real terms excluding this subsidiary divestiture achieved the growth YoY +6.5% with the strong performance of each core service, Domestic debugging and QA solutions. On the profit front, strong growth in high-margin debugging services and structural reforms in our overseas operations within the AGEST Group contributed to significant improvement. Q3 Operating profit (nine months) reached 2,341 million yen (up 27.4% YoY), and Q3 profit attributable to owners of the parent (nine months) reached 1,422 million yen (UP 3.8% YoY), both marking record highs for Q3 (nine months) period. Progress toward full-year targets remains solid, with sales at 73.2% and operating profit at 88.7%. Backed by continued strong demand, we aim to outperform our full-year operating profit target by continuing to capture new projects in Q4 FY2025.
As previously communicated, we are preparing for the Spin-Off Listing of AGEST Inc., our consolidated subsidiary. With this, we are effectively managing two independent corporate groups. The DH Group is advancing its growth strategy to become a “Global Quality Partner in the Entertainment Industry,” establishing a localization-focused subsidiary in Thailand, acquiring a mid-sized game debugging company in Canada, and forming a strategic capital and business alliance with a U.S. company to strengthen our translation solutions. These investments are accelerating the expansion of our service and geographic footprint. Meanwhile, the AGEST Group is evolving into “an AI-era testing company that ensures the quality of enterprise systems with cutting-edge technology.” During the fiscal year, we launched the SaaS version of TFACT, which is its unique AI test management tool, as well as a fully domestic SBOM (Software Bill of Materials) management tool, these initiatives should be important steps toward establishing a new revenue model not relying solely on the number of engineers.
Going forward, our Group will continue to pursue unique growth strategies tailored to each business domain and remain committed to maximizing corporate value. We sincerely appreciate our shareholders' ongoing support and ask for your continued trust as we move ahead.
February 5, 2026
President & CEO
Toshiya Tsukushi