ENVALITH
株式会社クロスキャット logo

CROSS CAT CO.,LTD.

2307・Prime Market・Information & Communication

Official website
株式会社クロスキャット logo
CROSS CAT CO.,LTD.2307

Business

CrossCat Co., Ltd. is an independent information services company founded in 1973. Together with its three consolidated subsidiaries (Cross UIS, Cross Active, and Cross Lead), the company operates in the single segment of information services. Its main business is organized around two axes: the SI field (system design, development, operation and maintenance, and consulting) and the DX field (BI implementation, data utilization infrastructure construction, cloud, generative AI utilization support, and in-house developed packages). Its major customers span highly public-interest industries such as finance, credit, public sector, government agencies, manufacturing, telecommunications, and distribution, with Fujitsu and NTT DATA as its main business partners. The company is listed on the Prime Market of the Tokyo Stock Exchange. Net sales for FY2026 (ending March 2026) were ¥17,314 million.

Business Model

The main revenue source is order-based system development and maintenance services in the SI segment (net sales of ¥14,852 million), with long-term continuing projects in finance, public sector, and other areas supporting stable earnings. In the DX segment (net sales of ¥2,461 million), the company provides proprietary products such as the attendance management cloud service "CC-BizMate" as well as BI and data utilization platform construction services, aiming to shift toward an asset-based business model. Using the proprietary framework "CC-Dash" for one-stop proposals, the company promotes cross-selling and upselling, aiming to expand the proportion of direct transactions with end users.

Company Strengths

From FY2022 through FY2026, revenue, operating profit, and net income all reached record highs for five consecutive fiscal years. In FY2026 (ending March 2026), the company achieved revenue of ¥17,314 million, operating profit of ¥2,014 million, and an operating margin of 11.6%. The profitability and financial targets (revenue, operating profit, operating margin, ROE) and KPIs set out in the medium-term management plan "Growing Value 2026" were achieved one year ahead of the plan's final year.

Maintenance services for banking business systems grew 24.6% year on year, while services for public sports and lottery promotion expanded significantly, up 82.4% year on year. In FY2026 (ending March 2026), orders received totaled ¥18,530 million (up 18.9% year on year), and the order backlog remained at a high level of ¥8,214 million (up 17.4% year on year). Longstanding track record and trusted relationships in the financial, government, and public sectors continue to support recurring orders.

The company has maintained rigorous quality management since obtaining ISO9001 certification in 1999. In 2017, it achieved CMMI Level 5 (Public Business Division). It has also established a security management framework through ISMS (ISO27001) certification obtained in 2004. Combined with a PMO-led monitoring system to prevent unprofitable projects before they occur, this framework sustains high quality and high utilization rates while keeping the cost ratio in line with the previous year.

ENVALITH's Perspective

In FY2026 (ending March 2026), the company achieved the financial targets—revenue, operating profit, operating profit margin, and ROE—as well as the KPIs (revenue per employee and operating profit per employee) set out in its medium-term management plan "Growing Value 2026," one year ahead of the plan's final year. For FY2027 (ending March 2027), the company forecasts revenue of ¥17,900 million (up 3.4% year on year) and operating profit of ¥2,150 million (up 6.8% year on year), representing continued growth in both revenue and profit; however, the growth rate is showing signs of deceleration, and the content of the next medium-term plan following the final year of the current plan, along with the presentation of new growth drivers, will be key to the stock's valuation.

In FY2026 (ending March 2026), sales to Fujitsu of ¥3,413 million and sales to NTT DATA of ¥2,485 million together accounted for approximately 34% of consolidated revenue. The risk remains high that changes in the investment policies of specific customers or gaps between projects could directly affect business performance. On the other hand, as an external factor, IT investment related to DX and generative AI has remained solid in the market environment, and the substantial increase in orders from public sports and government agencies (up 82.4% year on year) demonstrates this benefit; however, a reaction following the delivery of large-scale projects (down 24.4% year on year for credit-related business) has also emerged simultaneously, requiring continued monitoring of the diversification of the project portfolio.

Operating cash flow in FY2026 (ending March 2026) improved significantly to ¥2,344 million from ¥692 million in the previous fiscal year, confirming a strengthening of the financial position. Meanwhile, in the DX segment, although revenue expanded 11.6% year on year to ¥2,461 million, upfront investment aimed at expanding cloud-related services pushed up the cost ratio, limiting gross profit growth to a 1.7% year-on-year increase to ¥542 million. Continued attention should be paid to the pace of monetization in the DX segment and the impact on profit margins of increased human capital investment, including wage increases and enhanced hiring.

Growth Strategy

Continuing to pursue the five strategies of the medium-term plan "Growing Value 2026" through its final year to enhance corporate value

Providing high-value-added SI services to credit, financial, government, and public enterprise clients to raise unit prices and deepen customer relationships. In FY2026 (ending March 2026), SI segment net sales reached ¥14,852 million (up 6.2% year on year) and gross profit reached ¥3,535 million (up 6.7% year on year), showing steady progress.

Expanding in-house-developed systems such as an attendance management cloud service centered on the proprietary framework "CC-Dash," together with data utilization platform construction services. DX segment net sales expanded to ¥2,461 million in FY2026 (ending March 2026) (up 11.6% year on year), but the gross profit margin is trending downward due to upfront investment, making monetization a challenge.

Invested ¥500 million in one of Japan's largest VC funds to promote collaboration with startups strong in AI, big data, and DX. Aiming to build a new revenue base by leveraging SBI Investment's network.

In addition to proactive wage increases, strengthened new graduate and mid-career recruitment, and expanded training programs, the company also renovated part of its head office. Investment in human capital increased year on year, but the resulting increase in profit from higher sales exceeded this, achieving a 9.7% year-on-year increase in operating profit.

Aiming to maximize group synergies through organizational restructuring and business integration that leverage the regional characteristics of each company. Continued promotion is planned for FY2027 (ending March 2027) as well. The financial targets and KPIs of the medium-term management plan have already been achieved, one year ahead of schedule.

Last updated: July 19, 2026