SORACOM,INC.

Business Details

As an MVNO procuring lines from MNOs such as KDDI and NTT Docomo, the company has built a proprietary mobile core on the cloud. It provides connectivity (SORACOM Air), network services, and application services as a platform, offering a self-service model usable from a single line by a wide range of customers from startups to large enterprises. It covers 392 carriers in 180 countries worldwide, with a structure centered on recurring revenue that also captures incremental revenue from product sales and professional services. From FY2026 (ending March 2026), the company has begun full-scale promotion of its "AI/IoT Connectivity Platform" strategy.

Recent Overview

Substantial growth with net sales up 38% and recurring revenue up 42%; operating cash flow turned positive

In FY2026 (ending March 2026), net sales increased significantly to ¥12,423 million (up 38.1% year on year) and recurring revenue to ¥9,296 million (up 41.7% year on year). The number of billable accounts expanded to 9,600, and ARPA also rose to ¥947 thousand (up 24.4% year on year). Earnings contribution from Misora Connect Co., Ltd., consolidated as a subsidiary in August 2025, and sales growth in the U.S. market provided tailwinds. Operating cash flow turned positive at ¥1,761 million, versus an outflow of ¥728 million in the prior period. On the other hand, due to the consolidation of Misora Connect, the overseas sales ratio declined by 1.8 percentage points year on year to 40.0%. As extraordinary losses, the company recorded an allowance for doubtful accounts of ¥136 million due to concerns over the return of deposits from a business partner, and a valuation loss on investment securities of ¥50 million. The platform name was changed to the "AI/IoT Connectivity Platform," with full-scale promotion of AI enablement underway.

Key Products

Growth Drivers

• Expansion of recurring revenue driven by continued growth in the number of billable accounts (9,600 as of end-March 2026) and rising ARPA (up 24.4% year on year to ¥947 thousand/account)
• Earnings contribution from Misora Connect Co., Ltd. (consolidated as a subsidiary in August 2025) and growth in contract development and professional services revenue
• Expansion of AI-enabled services (such as SORACOM Flux) and new customer acquisition through the "AI/IoT Connectivity Platform" strategy
• Notable sales growth in the U.S. market and continued expansion of overseas business (maintaining an overseas sales ratio of 40.0%)
• Expansion of incremental revenue from orders and deliveries of large-scale device projects (¥3,126 million, up 28.6% year on year)
• Deepening collaboration with major partners, as shown by expanded contract development from KDDI Corporation (contract liabilities up ¥312 million)

Risks

• Risk of sales concentration among specific customers (as of the prior period, Energy Uchu accounted for 10.7% and KDDI 10.6% of top customers)
• Credit risk from deteriorating financial condition of certain customers (allowance for doubtful accounts of ¥279 million recorded during the period; extraordinary loss of ¥136 million recorded due to concerns over the return of deposits from a business partner)
• Foreign exchange risk (overseas sales ratio of 40.0%; foreign exchange loss of ¥11 million recorded during the period)
• Risk of intensifying competition in the IoT/AI platform market and delayed response to technological innovation
• Risk of increased SG&A expenses from M&A-related costs such as Misora Connect, and impairment risk on goodwill (¥691 million)
• Risk to profitability from continued investment in personnel recruitment and marketing for overseas business
• Risk of increased administrative costs and integration risk from expansion of the scope of consolidation due to the Misora Connect subsidiary consolidation