Moving Services Up the Value Chain and Improving Operating Margins
First written in FY2023. 2 of 6 entries say "Advanced", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2025: 5 of 30 companies on the "Worse" side.
1 other company's latest entry also says "Other".
- FY2026Expanding revenue growth initiatives while profit margins decline due to front-loaded investmentAnnual report
「The company will strengthen its ability to recruit engineers and expand its workforce, while improving productivity and increasing added value through the transition to an AI-native development process, thereby expanding development capacity and increasing revenue per employee. It will also work to increase customer spending per project and gross profit margins by raising the proportion of projects in which it becomes involved in solving customer issues from the conceptual stage.」
The company is combining AI-native development, recruitment, involvement in upstream processes and the accumulation of recurring revenue as means of increasing added value and improving the operating margin. For the full year, operating income declined 70.8% year on year due to front-loaded investment. - 2026-05-12AdvancedRevision of earnings forecasts
「The forecast is expected to exceed the initial plan because the gross profit margin rose versus the plan, driven in part by growth in average customer spending.」
Growth in average customer spending and the resulting increase in the gross profit margin are cited as factors behind the operating profit upside. - FY2026-H1Higher revenue and lower profit due to front-loaded investmentAnnual report
「At the same time, the current fiscal year has been positioned as a "year of investment" aimed at achieving non-linear growth going forward, and the company is accelerating active use of generative AI services, investment in personnel, and advertising and promotional investment to expand its space-related business and product services. As a result, for the interim accounting period, revenue was ¥1,093.883 million, up 16.9% year on year, operating profit was ¥97.627 million, down 21.0%, ordinary profit was ¥99.923 million, down 19.9%, and interim net income was ¥65.846 million, down 20.3%.」
While maintaining a policy of increasing added value and improving profitability, the company accelerated investment in generative AI, personnel, space and products during the current fiscal year. Revenue increased, while operating profit and other measures fell below the same period of the previous year. - FY2025AdvancedAnnual report
「Revenue increased as deeper engagement with large corporate customers progressed and transaction prices rose, resulting in revenue of ¥1,952.131 million, up 8.5% year on year.」
In connection with increasing added value and improving profitability, the company describes revenue growth driven by deeper engagement with large corporate customers and higher transaction prices as a result. - FY2024RestatedAnnual report
「By strengthening our recruiting capabilities, we will increase our technical personnel and, by expanding the technology fields we address and our consulting scope, provide higher-value-added services and seek to increase contract prices, thereby raising revenue. We will also seek to build a stronger development structure through continuous improvement of development processes and the sharing of technology and training within the company.」
The company reiterates measures to improve the operating margin through higher-value-added services, higher contract prices, improved development processes, technology sharing and training. - FY2023First statedAnnual report
「We recognize that our challenge is to achieve stable, high revenue growth through steady execution of our growth strategy while improving the operating margin. By strengthening our recruiting capabilities, we will increase our technical personnel and, by expanding the technology fields we address and our consulting scope, provide higher-value-added services and seek to increase contract prices, thereby raising revenue.」
In addition to revenue growth, the company identifies improving the operating margin through expansion of its technology and consulting fields and higher contract prices as a challenge.