Digital Arts Inc.

The company's proprietary "white-list operation" model, which permits only safe communications and behaviors, is based on a proprietary database covering domestically searchable URLs and safe sources, and addresses both known and unknown threats. As of the end of March 2026, the user base numbered approximately 15 million, with growing recognition centered on corporations, government agencies, and educational institutions. This large user base constitutes a competitive advantage, creating a virtuous cycle of data accumulation and product improvement.

In FY2026 (ending March 2026), the operating margin stood at 44.2% (operating profit of ¥4,791 million), maintaining exceptionally high profitability for a software business. With zero interest-bearing debt and cash and cash equivalents reaching ¥23,083 million, the company has a robust financial foundation capable of funding growth investments and shareholder returns from internal resources. ROE also remained at a high level of 19.2%, indicating strong capital efficiency.

The company has obtained ISO/IEC 27001 (2020), ISO/IEC 27017 (2020), and ISMAP (2021) certifications. In March 2025, it additionally registered three products—m-FILTER MailAdviser, a-FILTER, and f-FILTER—and in January 2026, registered two more products including i-FILTER@Cloud GIGA School Edition. This certification framework, which satisfies procurement requirements for government and public institutions, makes it difficult for competitors to enter the market.

A domestically developed zero-trust security product for which official sales commenced on November 4, 2025. Built around the "White Operation" concept, it provides everything from authentication to access control on a single platform. Since the launch, orders have steadily accumulated, and the product is expected to contribute meaningfully to revenue in the next fiscal period. The company will continue to accelerate collaboration with sales agents and enhance functionality, aiming to establish it as a pillar of its medium- to long-term revenue base.

Contract value for the public sector expanded significantly, up 106.7% year on year to ¥10,639 million. The company achieved both a higher win rate and higher deal unit prices compared with the first phase. Competitiveness was strengthened through ISMAP registration and the addition of a feature to visualize digital textbook usage status. Expansion into next-generation school administration DX and municipal projects is also progressing steadily, with the accumulation of cloud-related order backlog forming a stable revenue base for the next fiscal period and beyond.

The company has clearly articulated a shift from its traditional agent-dependent model to a sales structure in which it strengthens direct engagement with end users, directly grasps customer challenges, and drives proposal activities on that basis. By visualizing and managing each stage of the funnel—from deal creation through to order acquisition—under its own leadership, and by rolling out successful cases to sales agents, the company aims to improve the reproducibility of partner sales and raise the order acquisition rate.

AI is being utilized companywide, including for coding support and specification document creation in the development department, lead scoring and proposal material preparation in the sales department, streamlining of inquiry response in the support department, and automation of routine tasks in the administrative department. The company aims to build a highly efficient business operation base that does not rely solely on headcount increases, achieving both growth investment and improved profitability.

For "i-Filter 10," a comprehensive security product for individual users, the company is promoting collaboration with existing and new sales agents as well as PC manufacturers with the aim of expanding beyond its traditional child-focused market into the adult market. Although this did not lead to monetization in the current period, the company continues to pursue, as a medium- to long-term goal, the expanded application of the "White Operation" model to the household market by leveraging its user base of approximately 15 million users.