Subscription revenue continues to build, but the next update should track both customer numbers and average pricing

Subscription revenue in FY2026 was ¥2,746.612 million, up 7.5% year on year. The company had 1,589 corporate customers, with average monthly revenue per customer of approximately ¥157,900, up 3.1% year on year. Growth in recurring revenue appears to have been supported not only by an increase in new customers, but also by cross-selling and upselling to existing customers and the acquisition of higher-value customers.

In the first half, subscription revenue was ¥1,325.099 million, up 5.4% year on year, accounting for 84.8% of total revenue. The customer base stood at 1,570 corporate customers at the end of September, while average monthly revenue per customer was approximately ¥145,100, exceeding the year-earlier period on both customer numbers and pricing. Meanwhile, in the latest monthly results for September, consolidated revenue declined by approximately 4% year on year, while subscription revenue increased by approximately 6%, indicating a divergence between recurring revenue and one-time implementation and support revenue.

In the next update for FY2027-H1, it will be important to confirm whether subscription revenue exceeds at least the ¥1,325.099 million recorded in the year-earlier interim period. If the company also discloses average monthly revenue per customer, churn, and the revenue generated through upselling and cross-selling, investors will be able to assess whether growth is driven by the volume effect of new customers or by improvements in customer spend and LTV. Conversely, if customer numbers rise while average pricing declines, attention will be needed regarding the possibility that the impact of acquiring high-value enterprise projects has run its course.