AP Cloud KPI growth continues, but the focus is on whether growth in registered units can be monetized

AP Cloud registrations increased from 473,535 units at the end of December 2025 to 487,114 units at the end of March 2026 and 507,917 units at the end of June 2026. At the end of the first half, registrations were up 21.8% from approximately 417,000 units a year earlier, indicating that efforts to expand adoption through stronger sales staffing, closer relationships with property management companies, and enhanced service offerings remain effective. At the next earnings release, the first point to check will be whether registrations at the end of September exceed 507,917 units and whether growth can remain around 20% year on year.

In terms of profitability, ARR for the AP Cloud service rose 31.5% year on year to ¥1,674.580 million, outpacing growth in registered units. Payment-processing units also increased 24.8% to 199,000, while rent-default-guarantee units rose 31.0% to 99,000. Because the business model accumulates highly recurring revenue, including payment fees, initial guarantee fees, and monthly guarantee fees, in addition to system usage fees paid by property management companies, it will be necessary to track whether the increase in units is translating into ARR.

However, the disclosed KPIs do not provide visibility into the number of contracted companies, churn and retention rates, revenue per registered unit, or utilization rates for payment and guarantee services. In the first half, the Monthly Innovation business generated revenue of ¥1,063.748 million and segment profit of ¥302.066 million, up 27.2% and 12.6%, respectively, year on year. Next time, in addition to increases in registered units and ARR, we will check whether the business can sustain its revenue and profit growth rates and whether supplementary disclosure is provided on the number of contracted companies and unit economics.