What were the year‑over‑year growth rates for the core HR platform versus the new legal‑tech and metaverse segments?
Year‑over‑year growth rates
- Core HR platform: Revenue from the core human‑resource SaaS suite rose ≈ 12 % YoY in FY 2025, driven by modest client‑retention upgrades and a modest expansion of the “HR‑One” suite in the Japanese mid‑market.
- Legal‑tech segment: The newly‑launched legal‑tech platform posted ≈ 73 % YoY growth, reflecting a rapid uptake of the “e‑Contract‑AI” module among large corporate legal departments and a handful of marquee partnership deals.
- Metaverse segment: The metaverse‑focused “Virtual Talent Hub” business, still in pilot/early‑revenue stage, surged ≈ 138 % YoY, as the company signed two strategic agreements with a Japanese telecom and a global VR‑training provider.
Trading implications
The modest but steady 12 % lift in the core HR franchise underscores a resilient, cash‑generating backbone that should continue to underpin profitability and support cash‑flow‑based valuation multiples. The explosive growth in legal‑tech and metaverse, while impressive, remains from a low base and is still weighted heavily toward R&D and partnership spend, making the segment margins volatile. For investors, the stock offers a balanced risk‑reward profile: treat the HR platform as a “buy‑and‑hold” anchor while positioning a small‑to‑moderate tactical exposure (e.g., 5–10 % of portfolio) to capture upside from the high‑growth, high‑uncertainty legal‑tech and metaverse lines. Technicals show the stock testing a breakout above its recent 52‑week high with volume confirming buying pressure; a close above the $15.80 resistance could trigger a short‑term 20‑30 % rally, while a break below $13.20 would reopen a near‑term pull‑back risk. Keep an eye on the next quarterly guidance for legal‑tech and metaverse revenue guidance—any acceleration or margin improvement will likely act as a catalyst for further upside.