CUBE SYSTEM INC.
2335・Prime Market・Information & Communication
Business
Cube System Inc. is an independent system integrator founded in 1972, operating a single business segment of system solution services that leverages IT to support customers' business model transformation and their response to changes in the management environment. Its main customers are major SIers and prime contractors, led by Nomura Research Institute (43.3% of net sales) and Fujitsu (24.3% of net sales), and it provides consistent services ranging from system development to operation and maintenance across a wide range of industries, including finance, distribution, telecommunications, public sector, and energy. In addition to domestic locations in Tokyo, Osaka, Nagoya, Fukuoka, and Hokkaido, the company has built a group structure that includes overseas subsidiaries in Vietnam and China.
Business Model
The business model consists of three segments: "Digital Business (consulting and advanced technology support)," "SI Business (modernization and new SI)," and "Enhancement Business (maintenance and operation of existing systems)." In the contract-based business, revenue is recognized through custom development tailored to client requirements, while in the planning-based business, recurring revenue is secured through ASP/SaaS offerings that leverage proprietary software and IP. In FY2026 (ending March 2026), revenue composition was Enhancement 51.1%, SI 41.8%, and Digital 7.1%, with the company advancing a shift of resources toward higher-margin areas.
Company Strengths
The company has maintained a business relationship with Nomura Research Institute for over 30 years since concluding a basic agreement in 1988, and entered into a capital and business alliance in December 2022 (holding 3,178,600 shares of Nomura Research Institute). In FY2026 (ending March 2026), sales to Nomura Research Institute amounted to ¥8,011 million (43.3% of the mix), while sales to Fujitsu amounted to ¥4,494 million (24.3%), with the deepened relationships with these two key clients forming a stable order base.
The company obtained ISO9001 certification in 2001 and ISO/IEC27001 certification in 2006, operating a two-tier structure of headquarters QMS and company-wide QMS. It positions early risk detection and control for high-difficulty projects as a top priority, promoting information visualization through its project management system and the establishment of completion reporting practices. This quality management framework underpins continued order intake from major SIers.
As of the end of FY2026 (ending March 2026), the equity ratio stood at 76.5% (75.7% in the previous fiscal year), and cash and cash equivalents amounted to ¥6,826 million, maintaining a financial structure close to debt-free. The company has also secured a working capital line through a commitment line agreement, giving it the financial capacity to fund growth investments—such as the opening of the Shinagawa Innovation Hub (capital expenditure of ¥384 million)—from its own funds.
ENVALITH's Perspective
Performance Trend
Net sales increased for five consecutive fiscal years, from ¥16,100 million in FY2022 (ended March 2022) to ¥18,498 million in FY2026 (ending March 2026). Operating income declined to ¥1,380 million in FY2025 (ended March 2025) but recovered to ¥1,558 million in FY2026 (ending March 2026), up 12.9% year on year, with the operating margin improving from 7.5% to 8.4%. The improvement in profitability was driven by a decrease in cost of sales (reflecting the effect of reviewing enhancement projects) and a decline in retirement benefit expenses. In terms of the external environment, growing demand for DX and expanding AI investment continue to support order intake, while upward pressure on personnel costs from the shortage of IT talent persists. Comprehensive income decreased to ¥1,051 million (from ¥1,522 million in the prior period), affected by deterioration in valuation difference on available-for-sale securities (-¥275 million) and remeasurements of defined benefit plans (-¥244 million).
Growth Strategy
The company aims to achieve net sales of ¥20,000 million through the establishment of the AI Promotion Office, expansion of one-stop services, and acquisition of new customers
From FY2026, the company will establish an AI Promotion Office to drive business transformation and productivity improvement through the implementation and operation of advanced AI. It aims to diversify revenue sources by expanding the functionality of the in-house AI application "InCUBEator" and launching new services including the AI automatic ordering system and H・CUBiC.
The company is reviewing low-profitability enhancement projects and shifting resources to the SI business (up 23.9% year-on-year) and digital business (up 62.7% year-on-year). It has achieved higher profitability in prime-oriented business and will continue to pursue improvement in operating profit margin through mix improvement.
The company is strengthening its one-stop service framework, providing design, development, operation, and maintenance in an integrated manner, to deepen relationships with existing prime customers and acquire new customers. It aims to expand its order-receiving areas by establishing a Lift & Shift model with SIers and promoting collaboration with cloud vendors.
The company opened the Shinagawa Innovation Hub, which has over 400 seats, to increase development capacity and enhance communication. It functions as physical infrastructure development aimed at building systems for large-scale projects and resolving productivity issues.
Last updated: July 19, 2026