Recurring revenue remains the core of high growth; the next question is whether the growth rate can be sustained

Revenue for the period from January through June 2026 was ¥816.604 million, up 21.8% year on year. Operating income was ¥283.312 million, ordinary income was ¥285.370 million, and interim net income was ¥178.254 million, representing year-on-year increases of 27.0%, 28.2%, and 22.4%, respectively. The company attributes the increase in revenue and profit in the first half to the concurrent progress made in acquiring new customers for its core services, upselling and cross-selling to existing customers, and expanding use cases for transaction monitoring.

Among the KPIs indicating SaaS-based recurring revenue, MRR was ¥130.888 million, ARR was ¥1,570.662 million, and ARPU was ¥2,784 thousand. All were up 18.7% year on year. Even though the number of contracted companies remained unchanged from the same period a year earlier at 47, higher spending and usage per customer are driving revenue growth. The contract backlog was ¥1,009.887 million, up 15.5% year on year, while the average gross revenue churn rate for the most recent 12 months declined to 0.5%.

By revenue type, recurring revenue, including Fraud Alert, was ¥757.823 million, accounting for 92.8% of revenue. This indicates revenue stability, but also means that revenue growth depends not only on net customer additions, but on higher traffic from existing customers, upselling, and cross-selling. The company treats its anti-money-laundering and cybersecurity businesses as a single reportable segment and does not disclose the revenue and profit breakdown between Fraud Alert and Grid Data KYC. As a result, the growth of the core business and the contribution from the new business cannot be separated directly from the financial figures.

In the next earnings release, cumulative nine-month MRR, ARR, ARPU, and the contract backlog should be compared with the first-half figures of ¥130.888 million, ¥1,570.662 million, ¥2,784 thousand, and ¥1,009.887 million, respectively. In particular, it will be important to see whether the recurring-revenue ratio remains around 92.8%, whether the number of contracted companies recovers from 47, and whether the churn rate can remain at or below 0.5%. It will also be important to determine whether the company discloses revenue by service, or at least the revenue from the new business, to assess how much Grid Data KYC has expanded from its limited contribution at the PoC stage.