Growth xPartners Incorporated.
244A・Growth Market・Information & Communication
Business
Growth Xpartners was established in 2008 and operates as a holding company running the "Enterprise DX Business" as a single segment. Its main clients are leading companies across industries such as healthcare, retail and distribution, mobility, telecommunications, construction, manufacturing, and finance, and it provides end-to-end services ranging from DX consulting to agile development, cloud utilization, and legacy modernization. A distinguishing feature is its hands-on support for clients' transformation into "self-driven DX organizations" capable of continuously creating value on their own; the company listed on the Tokyo Stock Exchange Growth Market in September 2024. It has 21 enterprise clients (as of FY2025 (ending August 2025)) and a highly recurring revenue structure with a client retention rate of 86.6%.
Business Model
Revenue is composed of three categories: (1) DX Promotion Support Business (consulting, agile development, cloud operations), (2) DX Support Products & Services Business (license sales of Atlassian, IBM i Modernization, Contentserv, etc.), and (3) Digital Service Co-creation Business (joint development of digital services with customers, revenue sharing). The core DX Promotion Support Business is dependent on human resources, but the company is pursuing diversification of scalable revenue sources through the Products and Co-creation businesses. For FY2025 (ending August 2025), net sales were ¥5,087 million, with an operating margin of 15.2%.
Company Strengths
Customer retention rate maintained at 86.6% (FY2025 (ending August 2025)). Of the 21 enterprise clients, 9 have annual transaction values of ¥100 million or more, and 6 are royal customers with ¥200 million or more. The company has established long-term capital and business alliances with Nipro and Isetan Mitsukoshi Holdings, building deep relationships that extend to supporting the establishment of DX subsidiaries and dispatching executives.
The number of consultant and engineer employees continued to increase, reaching 213 as of the end of August 2025. The proportion of employees of overseas origin rose significantly from 14.6% (FY2024 (ending August 2024)) to 19.1% (FY2025 (ending August 2025)). The new graduate retention rate over the past five years stood at an extremely high 97% (as of the end of August 2025), and the company has established a system using its proprietary training program to bring IT-inexperienced hires up to a level where they can be assigned to projects within four months.
For FY2025 (ending August 2025), net sales were ¥5,087 million (up 15.0% year on year), operating profit was ¥774 million (up 28.5% year on year), and profit attributable to owners of parent was ¥600 million (up 43.8% year on year). Gross profit margin improved by 1.9 percentage points year on year due to a reduction in the ratio of outsourcing costs and a review of the business portfolio, and the operating profit margin rose from 13.6% to 15.2% while absorbing increased investment in recruitment and training.
ENVALITH's Perspective
Performance Trend
Sales were ¥4,422 million and operating profit was ¥603 million in FY2024 (ending August 2024), and sales were ¥5,087 million and operating profit was ¥774 million in FY2025 (ending August 2025), achieving two consecutive fiscal years of higher sales and profit. However, the full-year forecast for FY2026 (ending August 2026) has been significantly revised downward to sales of ¥4,657 million (down 8.4% year on year) and operating profit of ¥413 million (down 46.6% year on year). Through the cumulative nine months of the third quarter, sales were ¥3,480 million (down 4.7% year on year) and operating profit was ¥344 million (down 40.4% year on year), already falling well below the prior-year level. Cost of sales was kept roughly in line with the same period of the prior year at ¥1,932 million (versus ¥1,942 million in the prior-year period), but SG&A expenses increased to ¥1,204 million (versus ¥1,132 million in the prior-year period), with both the decline in sales and the rise in expenses squeezing profit. As for the external environment, demand for DX investment continues, but a combination of factors—a lull between projects, delays in order receipt, and a reduction in project scale due to an emphasis on profitability—had a compounded impact.
Growth Strategy
Upgrading DX support through deepening relationships with existing customers, acquiring new customers, and strengthening upstream consulting
The company is expanding digital platform construction for real estate, food, financial and other industries, while working to acquire new customer projects and generate new projects with existing customers. However, as of the nine months ended, proposal activities and project development have taken longer than expected, and sales expansion has not reached the initial projection.
The company is expanding license sales and professional services for new products and services such as LumApps, IBM i modernization, Contentserv, and Qualtrics. This contributed to sales growth in the nine months ended, and these offerings are being developed as scalable revenue sources.
Through the subsidiary established in April 2026, the company aims to strengthen upstream strategic consulting functions, enhance the value provided across the group as a whole, and upgrade end-to-end support for enterprise customers. As the subsidiary was only recently established, its contribution to financial results remains a task for the future.
The company is implementing a policy of scaling down or terminating low-profitability maintenance projects and concentrating resources on growth areas. While this is a factor reducing sales in the short term, it is positioned as a deliberate initiative aimed at improving the revenue structure over the medium to long term.
Last updated: July 17, 2026