Shift from flow-based to stock-based and recurring revenue
First written in FY2024. 5 of 10 entries say "Advanced", first in 2026-03-06. Latest entry: 2026-10-01.
14 other companies' latest entry also says "Advanced".
- FY2026-H1Temporary decline in ARR and expected recoveryAnnual report
「As a result of these initiatives, ARR (Note 1), which our Group considers an important management metric, was ¥359.656 million in the interim consolidated accounting period, down 6.4% year on year and up 0.7% from the previous quarter. The year-on-year decline was attributable to the termination at the end of March 2026 of transactions with a major rental property operator, one of our Group’s major customers, which meant that revenue from services provided to that customer ceased to be generated from the current quarter. ARR has temporarily declined year on year since the termination of this transaction, but is expected to recover toward the second half of the fiscal year ending December 2026, as revenue from “BridgeLAB DR,” acquired under a performance-based fee arrangement, begins to make a full contribution to revenue and profit from the second half of the fiscal year ending December 2026.」
ARR, a key metric for the stock-based business, declined year on year following the termination of a transaction with a major customer, while revenue from BridgeLAB DR on a performance-based fee basis is expected to support recovery in the second half of the fiscal year ending December 2026. - FY2024First statedAnnual report
「As shown below, stock-based revenue has accounted for an increasing proportion of the Group’s total revenue each year, reaching 43% in the fiscal year ended December 2024.」
The Group explains its policy of transitioning from one-off sensor sales and similar activities to recurring-fee platform and application services, together with the 43% achieved to date.