CROOZ,Inc.
2138・Standard Market・Information & Communication
Business
CROOZ, Inc. is a pure holding company operating as a tech company with 20 consolidated subsidiaries and 2 equity-method affiliates. Its core business is IT outsourcing (SES business), where subsidiary 496, Inc. and others provide engineer personnel to companies. The second pillar is the EC business, where subsidiary Ada Inc. sells original and curated products within ZOZOTOWN. The company completely withdrew from the SHOPLIST business in February 2025 and from the GameFi business (Studio Z, Inc.) in June 2025, cleaning up unprofitable operations. From May 2026, it launched a new growth pillar, the "Hotel Conversion Business," which converts old buildings in central Tokyo into high-value-added hotels. Listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
Revenue in the IT outsourcing business is composed of "number of active engineers × unit price," and since the unit price is generally stable, growth in the number of active engineers is a direct driver of revenue growth. The company hires approximately 300 or more in-house full-time engineers annually, and combines this with turnover management to build up the number of active engineers. The EC business utilizes the ZOZOTOWN platform and records net revenue after deducting procurement costs. The new hotel conversion business generates revenue through long-term, stable income gains from hotel operations following real estate acquisition and renovation.
Company Strengths
The IT outsourcing business achieved a CAGR of approximately 68% in net sales from its launch in 2020 through the previous fiscal year. In the fiscal year under review, net sales were ¥7,713 million (up 55.6% year on year) and segment profit was ¥275 million (up 131.2% year on year). Orders received increased 148.1% year on year and the order backlog increased 139.9% year on year, indicating favorable leading demand indicators as well.
The Group has established a system for hiring more than approximately 300 in-house full-time engineers per year. The high proportion of in-house full-time employees enables direct implementation of measures for engineer motivation management, skill development, and retention, functioning as a recruitment foundation that supports the continued expansion of the number of active engineers.
As a result of sequentially eliminating loss-making factors, namely the SHOPLIST business (transfer completed in February 2025) and the GameFi business (withdrawal in June 2025), the Group turned around from an operating loss of ¥1,026 million recorded in the previous consolidated fiscal year to an operating profit of ¥23 million in the fiscal year under review. This demonstrates a track record in which selection and concentration of the business portfolio directly led to improved profitability.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥15,478 million in FY2022 and has continued to decline since, reaching ¥11,821 million in FY2026. The main cause is the structural contraction of the EC business following the transfer of the SHOPLIST business. Meanwhile, operating profit, after recording a loss of -¥1,026 million in FY2025, turned positive to ¥23 million in FY2026. Withdrawal from the GameFi business and strong growth in the SES business (up 55.6% year on year) drove the improvement. However, net loss for the period continued at ¥471 million, with the burden of financial expenses at the ordinary income level remaining an issue.
Growth Strategy
Dual-axis growth through strengthened recruitment and retention in the SES business and the new launch of the hotel conversion business
Based on a recruitment system that hires over approximately 300 full-time in-house engineers annually, the company aims to enhance both the efficiency and quality of recruitment activities through the introduction of new recruitment channels, optimization of advertising operations, and continuous improvement of the interview process. While discontinuous growth through M&A is not currently anticipated, the company will flexibly consider promising opportunities should they arise.
The company will continue to provide opportunities to acquire desired skills, high-level compensation, and flexible working arrangements such as remote work and restrained overtime, in order to improve engineer retention. It will also actively work on developing and hiring sales personnel, aiming to achieve assignments that satisfy both engineers and clients.
By acquiring small-to-medium-sized older buildings in central Tokyo and converting their use to high-value-added hotels, the company aims to capture inbound demand and generate long-term, stable income gains. Rather than aiming for short-term real estate trading, the company seeks to build a sustainable revenue base through hotel operations achieving high occupancy rates and high average room rates. During the consolidated fiscal year under review, ¥5,277 million was already spent on the acquisition of investment real estate.
The company completed a full withdrawal from the SHOPLIST business (transfer completed in February 2025) and the GameFi business (transfer of all shares of Studio Z Co., Ltd. in June 2025), eliminating sources of loss. This has established a structure that concentrates management resources on the IT outsourcing business and the EC business (Ada. business).
In addition to implementing internal controls over financial reporting based on the Financial Instruments and Exchange Act, management executives review the company's own checklist items covering business, technical, and administrative aspects on a quarterly basis, continuously strengthening the internal management structure. The company will also promote thorough legal compliance and more sophisticated risk management.
Last updated: July 19, 2026