By Advancing Our Unique Growth Strategies, We will Become a Corporate Group that Wins in the AI Era.
In FY2025, the console game market recovered following the launch of the Nintendo Switch 2, driving a sharp increase in demand for game debugging services. Anticipating this surge in demand, we have begun deploying over 600 units of dedicated Nintendo Switch 2 testing equipment since the end of FY2024. At the same time, we are strengthening the recruitment and training of tester personnel and to promoting resource sharing across our test centers. These initiatives enable the Group to deliver flexible and agile operations tailored to client needs. As a result of these efforts, we achieved performance that significantly exceeded expectations, including the acquisition of a greater-than-anticipated number of new debugging projects. Meanwhile, in the AGEST Group Business, which provides services for enterprise clients, certain businesses such as system development and security monitoring experienced a contraction amid the growing adoption of AI; however, our core software testing services continued its revenue growth trend.
Net sales for FY2025 decreased -2.1% YoY to 38,928 million yen, mainly due to the significant impact of the deconsolidation of subsidiaries sold in FY2024. However, as mentioned earlier, game debugging performed strongly and drove the overall performance of the Group. As a result, on a substantive basis excluding the impact of the deconsolidation, we achieved revenue growth of +6.2% YoY. In addition, operating income increased to 2,626 million yen (+8.1% YoY), supported by the strong growth of our highly profitable game debugging, enabling us to steadily expand our overall business performance.
At the same time, FY2025 was also the period in which we strongly recognized that the business environment surrounding the Group has begun to change rapidly amid the accelerated advancement of AI technologies. While we are leveraging AI to enhance service quality and improve operational efficiency, we also believe it is increasingly important to further strengthen value creation by utilizing the “unique talent” and “technological capabilities” unique to our Group. In addition, amid the so-called “Anthropic Shock,” which triggered sharp declines in IT-related stock prices, equity markets have remained volatile throughout 2026 due to growing concerns over the impact of AI. Under these circumstances, we made a strategic shift in direction by withdrawing the initiatives for the share-distribution-type spin-off and listing the shares (“Spin-Off Listing”) of AGEST, Inc., our consolidated subsidiary, which we had been preparing since May 2023. At the same time, we have positioned the establishment of a competitive business foundation for the AI era as our highest management priority. Going forward, the DH Group Business will work to expand globally its “Entertainment quality” assurance, which leverage the human sensibility, intuition, and insight of professionals deeply familiar with games and entertainment content. To achieve this, we will strengthen collaboration across our domestic and overseas group companies as well as international business partners, thereby building a framework to provide debugging, translation and LQA, multilingual voice recording, and related services on a one-stop global basis. Meanwhile, in the AGEST Group Business, we aim to establish new revenue models that are not dependent on the number of engineers by strengthening the deployment of solutions utilizing our proprietary AI testing tool “TFACT” and vulnerability risk visualization tool “SBOM Archi,” both launched during FY2025. Furthermore, we have established the Corporate Venture Capital (CVC) division and will accelerate our expansion into new markets and domains beyond our existing businesses through proactive investment in companies that offer access technologies, ideas, business models, and innovative talent not currently within the Group.
Through the steady execution of these initiatives, we aim to achieve net sales of 41,080 million yen (+5.5% YoY) and operating income of 2,730 million yen (+4.0% YoY) for the fiscal year ending March 31, 2027.
In addition, while actively promoting these growth investments, we remain committed to providing continuous and stable returns to shareholders. From the perspective of further clarifying this commitment, we revised our dividend policy to adopt a “progressive dividend” approach starting with the year-end dividend for FY2025. Going forward, we will continue to take on new challenges proactively to enhance corporate value, while also striving to deliver returns to our shareholders.
With the rapid advancement of AI, the business environment is changing at an unprecedented pace. As a management team, we deeply regret that we were unable to realize the Spin-Off Listing of AGEST, Inc., a major strategic initiative we had pursued over nearly three years. Nevertheless, we will seize these changes as an opportunity to further transform our Group— built on a strong entrepreneurial spirit since its founding—into a company that continues to be needed by society in the AI era. We sincerely appreciate the continued support of our shareholders, and look forward to your ongoing trust and support.
May 13, 2026
President & CEO
Toshiya Tsukushi