Sapeet, Inc.

Business Details

Under the mission of "Science of People, Creating Connection," the company operates on two axes: AI Solutions, which provides custom development and consulting for client companies centered on its proprietary "Expert AI" combining image recognition, natural language processing, LLMs, and generative AI; and AI Products (Shisei Karte, Multi Karte, SAPI Role-Play), which are provided mainly on a SaaS basis. Its differentiating factor is reproducing expert knowledge in fields such as wellness and sales through AI, aiming to amplify the value of core operations.

Recent Overview

In H1 FY2026 (ending September 2026), net sales grew 85% and operating profit grew 579%, achieving substantial growth in both revenue and profit

In H1 FY2026 (ending September 2026) (October 2025 to March 2026), net sales were ¥829 million (up 84.9% year on year), operating profit was ¥102 million (up 579.0% year on year), and net income for the interim period was ¥115 million (up 2,640.6% year on year). Contributing factors included progress and expansion of existing AI Solutions projects, acquisition of new projects related to generative AI and AI agents, growth in the number of AI Product accounts, and expanded sales of SAPI Role-Play. Contract liabilities surged to ¥121 million (up ¥115 million from the end of the prior fiscal year) due to payments received for a large-scale contracted project, and related sales are expected to be recognized in the second half. The full-year earnings forecast has been revised upward, with net sales projected at ¥1,700 million and operating profit at ¥120 million.

Key Products

Growth Drivers

• Acceleration of corporate investment in AI and labor-saving measures against a backdrop of structural labor shortages (Japan's domestic AI systems market is expected to expand from ¥1,341.2 billion in 2024 to ¥4,187.3 billion in 2029)
• Increased recognition and credibility from the listing on the Tokyo Stock Exchange Growth Market supporting new project acquisition in AI Solutions
• Increase in new project acquisitions related to generative AI and AI agents (became evident in H1 FY2026, ending September 2026)
• Accumulation of recurring revenue from growth in the number of accounts for AI Products (Shisei Karte and Multi Karte)
• Development of new customer segments through cross-industry sales expansion of SAPI Role-Play (formerly Karti Role-Play)
• Continuation and expansion with existing clients in AI Solutions (transition from PoC to full development and internal horizontal deployment)
• Accumulation of contract liabilities (¥121 million at the end of the interim period) from orders for large-scale contracted projects, supporting sales recognition in the second half

Risks

• Cost of sales (labor costs and outsourcing expenses) increased 100.6% year on year, outpacing the rate of net sales growth (84.9%), posing a risk of margin pressure from continued strategic investment
• Continued strategic proposals for future transaction expansion opportunities in AI Solutions and for the AI agent focus area are contributing to increases in labor costs and outsourcing expenses, posing a cost burden risk if such proposals fail to materialize into actual projects
• The AI Solutions continuation rate has been on a declining trend, at 70.8% in FY2025 (ended September 2025) (down 19.2 percentage points year on year), presenting a risk that new projects may remain stuck at the PoC stage
• The AI Products churn rate has been on a rising trend, at 1.37% (up 0.55 percentage points year on year), making retention of existing customers a challenge
• Customer concentration risk with Innovation Studio Co., Ltd. (11.48% of net sales) and PKSHA Technology Inc. (3.78% of net sales)
• The equity ratio declined from 83.4% at the end of the prior fiscal year to 70.7% at the end of the interim period, raising concerns about the impact on financial soundness from continued aggressive upfront investment
• Given the nature of AI services handling personal information and confidential customer information, there is a risk of information leakage and security incidents
• Since recognition of sales related to contract liabilities of ¥121 million (advances received for a large-scale contracted project) is concentrated in the latter half of the fiscal year, progress management in the second half is key to achieving the full-year forecast