Smaregi's Q1 sales climb, on track to hit ARR target early

For the three months ended July 31, 2025, Smaregi reported net sales of JPY 3,013 million, up 19.1% year-on-year. Operating profit reached JPY 589 million, a slight decrease of 1.1% year-on-year, attributed to record-level sales and marketing investments aimed at accelerating annual recurring revenue (ARR) expansion.

ARR expanded by 42.8% year-on-year to JPY 9,433 million, primarily fueled by strong growth in cashless payment services and the reclassification of maintenance fees into Smaregi usage fees. The company is on track to achieve its ARR target of JPY 9.46 billion for the current Medium-Term Management Plan six months ahead of schedule, with a new plan for fiscal year 2027-2029 to be announced by April 2026.

Total assets stood at JPY 10,594 million as of July 31, 2025, with net assets increasing to JPY 7,755 million, resulting in an equity ratio of 73.2%. The workforce grew to 442 employees, a 31.9% increase year-on-year, reflecting ongoing hiring in engineering, design, sales, and marketing.