ENVALITH
株式会社フォーサイド logo

Forside Co.,Ltd.

2330・Standard Market・Information & Communication

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株式会社フォーサイド logo
Forside Co.,Ltd.2330

Business

Foaside Co., Ltd. is a holding company listed on the Standard Market of the Tokyo Stock Exchange. Founded in 2000 as a mobile content provider, the company has undergone repeated business transformations and now operates four core businesses: (1) the Prize business (planning, production, and sale of prizes for crane games), (2) the AI-related business (GPU server sales and AI tool development), (3) the comprehensive human resources services business (staffing and subcontracted work), and (4) the logistics-related business (general freight and freight forwarding). In addition, the company operates a content business for the e-book service "Mobi Book," an exhibition and sales event business at event venues, and a master rights business for publishing and brand licensing. The group consists of seven consolidated subsidiaries, and following the acquisition of antz Co., Ltd. in March 2025, the company newly established both the comprehensive human resources services and logistics businesses.

Business Model

In the prize business, each subsidiary handles merchandise sales revenue from the planning, production, and sale of prizes; in the AI-related business, software and hardware revenue from GPU server sales and generative AI tool development; in the comprehensive staffing services business, service revenue from staffing and contracted work; and in the logistics-related business, transportation service revenue. The Company, as a holding company, is responsible for management administration and oversight functions, and expands its business portfolio through M&A and business alliances as needed. Capital expenditure is mainly limited to logistics vehicles, maintaining an asset-light business structure.

Company Strengths

The Prize segment recorded net sales of ¥3,463 million and segment profit of ¥341 million (profit margin of approximately 9.8%). Driven by strong customer traffic at amusement facilities due to an increase in foreign tourists, the segment achieved year-on-year growth of 16.7% in net sales and 35.7% in segment profit. Continuous cost reduction measures and fixed cost savings from office relocation have contributed to margin improvement.

The AI-related business achieved net sales of ¥3,098 million (up 353.4% year-on-year) and segment profit of ¥198 million (up 345.5% year-on-year). This growth was driven by securing multiple large-scale orders for GPU server sales. In the third quarter, the company launched a "discharge summary system" utilizing generative AI, beginning efforts to diversify its software revenue sources.

In March 2025, the company made antz Co., Ltd. a wholly-owned subsidiary and established a comprehensive staffing services business (net sales of ¥1,428 million, segment profit of ¥42 million). In July of the same year, antz also entered the logistics-related business, recording net sales of ¥317 million and segment profit of ¥62 million. This business expansion through M&A directly contributed to the significant increase in revenue (up 63.8% year-on-year) for FY2025 (ending December 2025).

ENVALITH's Perspective

For Q1 FY2026 (ending December 2026), net sales were ¥1,406 million (down 5.2% year-on-year) and operating profit was ¥32 million (down 45.2%), representing a substantial decline in both revenue and profit. The full-year forecast calls for net sales of ¥5,998 million (down 31.4% year-on-year) and operating profit of ¥108 million (down 76.6%), with Q1 operating profit of ¥32 million equivalent to roughly 30% of the full-year forecast. On the other hand, the contraction in GPU server sales in the AI-related business (net sales down 96.4% year-on-year) was one of the main contributing factors, and it is possible that the prior period's high level included special factors. It will be necessary to closely examine the scope for recovery over the remaining three quarters and the recovery trajectory of each segment.

On the same date as this earnings report, a timely disclosure titled "Notice Regarding Suspected Improper Transactions at a Consolidated Subsidiary" was released, stating that the impact on consolidated results for FY2026 (ending December 2026) and prior periods is under investigation and has not been reflected in this report. The amount of impact, the subsidiary involved, and the nature of the matter all remain unknown at this time, and there is a risk that prior-period results may need to be restated or that internal control issues may come to light. This is the most significant uncertainty factor for investment decisions, and close attention should be paid to the disclosure of investigation results.

The comprehensive staffing services business recorded net sales of ¥423 million in Q1, but posted a segment loss of ¥6 million as it was unable to absorb fixed costs due to the low number of operating days from January to March. This business has been operating at full scale since Q2 of the previous fiscal year, and the previous fiscal year's full-year net sales of ¥1,428 million serve as a reference point. Improvement in the operating rate and progress in acquiring new clients from Q2 onward will be key to profitability, and whether synergies can be realized through deeper collaboration with the logistics-related business is also a point of focus.

Growth Strategy

Portfolio restructuring through strengthening the three core businesses of prizes, staffing, and logistics, combined with a transition of the AI business's revenue model

The company aims to maintain and improve profitability in its core business through expanding orders centered on character goods and miscellaneous merchandise, and continuing cost reduction measures amid a weak yen and rising transportation costs. In Q1 of FY2026 (ending December 2026), segment profit reached ¥86 million (+20.5% year-on-year), confirming the effectiveness of these measures.

Centered on antz, which became a wholly owned subsidiary in March 2025, the company is promoting deeper relationships with existing clients and the development of new clients. Q1 (January–March) recorded a segment loss of ¥6 million due to fewer operating days, but the company aims to achieve improved utilization rates from Q2 onward and realize synergies through strengthened collaboration with the logistics-related business.

In response to the downsizing of GPU server sales (Q1 revenue of ¥25 million, down 96.4% year-on-year), the company is promoting a business model shift toward high-value-added services such as AI-driven business efficiency tool development and medical DX. However, Q1 recorded a segment loss of ¥5 million, and monetization is expected to take time.

With antz's entry into the logistics business, Q1 revenue reached ¥107 million (+88.8% year-on-year). On the other hand, segment profit declined to ¥12 million (down 50.8% year-on-year) due to a decrease in freight forwarding volume and rising fuel costs. Selective concentration on higher-profitability projects and strengthened collaboration with the comprehensive staffing services business are key challenges.

Based on the timely disclosure dated May 13, 2026, "Notice Regarding Allegations of Improper Transactions at a Consolidated Subsidiary," the company is investigating the impact on its performance for FY2026 (ending December 2026) and prior periods. Prompt disclosure of investigation results and the formulation and implementation of preventive measures are urgent priorities, and strengthening governance is essential to restore investor confidence.

Last updated: July 17, 2026