Japanese content creation software maker Celsys revised its fiscal 2025 earnings targets upward, citing stronger-than-expected traction in subscription sales and paid licenses for its flagship Clip Studio Paint application.
The Tokyo-listed company now expects 9.26 billion yen ($59.9 million) in revenue, compared with its previous projection of 9.08 billion yen. Operating profit is forecast at 2.9 billion yen ($18.8 million), up from 2.56 billion yen, while net income is expected to drop to 1.4 billion yen ($9.1 million) from 1.74 billion yen due to one-time charges including a founder’s retirement benefit.
Celsys attributed the revenue upgrade to stronger-than-anticipated sales of perpetual licenses following a major software version release and subscriber recruitment campaigns that outperformed initial targets. The company has been successfully expanding its subscription model as it transitions from one-time purchases.
However, earnings per share are forecast to decline to 45.80 yen from 56.46 yen, reflecting the impact of special losses that include securities valuation adjustments and the planned retirement provision in the fourth quarter.
Recent company disclosures show Clip Studio Paint’s subscription revenue reached record levels in recent months, with annual recurring revenue exceeding 5 billion yen. The stabilization of churn rates has signaled improving customer retention, supporting the case for higher profitability despite the one-time charges.
