ENVALITH
株式会社メディカルネット logo

Medical Net, Inc.

3645・Growth Market・Information & Communication

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株式会社メディカルネット logo
Medical Net, Inc.3645

Business

Medical Net, Inc. is a dental-focused healthtech company founded in 2000. Guided by its corporate philosophy of "increasing smiles by improving health and quality of life through the use of the internet," the company started with a media business built around a group of dental-specialized portal sites (Kyousei Shika Net, Implant Net, etc.), and has since diversified into Web Marketing for dental clinics, Website Production, management support, dental trading, dental clinic operation in Thailand, and POS system development. Operating as a group of 10 companies including 9 consolidated subsidiaries, it covers the entire dental healthcare ecosystem both in Japan and overseas. Its main customers are dental clinics, dental-related companies, and consumers, and it is listed on the Growth Market of the Tokyo Stock Exchange.

Business Model

The Media Platform Business (revenue ¥1,083 million, profit margin 50.0%) forms a highly profitable revenue base, and the company leverages the touchpoints with dental clinics and consumers gained there to expand horizontally into the Medical Institution Management Support Business (revenue ¥4,419 million). Through multi-layered services including Web Marketing, website production, dental trading, clinic operation, and OTC drug wholesaling, the company supports the overall management of dental clinics, while also adding overseas and IT service revenue through its Thailand operations and POS systems (Cloud Integration Business).

Company Strengths

The dental specialty portal site group, including Kyousei Shika Net and Implant Net, maintained a segment profit of ¥542 million on segment sales of ¥1,083 million in FY2025 (ended May 2025), sustaining a profit margin of 50.0%. Advertising placements on new media (such as Kyousei Shika Net Plus) have also trended steadily, functioning as a revenue base with high entry barriers.

The company covers the entire dental healthcare value chain, spanning media, Web marketing, website production, dental trading, clinic operation, management support, OTC pharmaceutical wholesaling, and POS systems. The domestic dental trading business has expanded to a four-location structure in Tokyo, Osaka, Miyazaki, and Kagoshima, while three dental clinics are operating steadily in Bangkok, Thailand, building a unique ecosystem that fuses real business operations with information services both domestically and overseas.

Dentwave, the Medical BtoB Business, has approximately 57,000 registered dental healthcare professional members. This membership base serves as a revenue source for advertising, research, and convention operation outsourcing targeting dental-related companies, and also serves as an asset that can be leveraged as the foundation for new services such as the Dentwave Prime clinic plan and DX services like zaico for dental Implementation Support.

ENVALITH's Perspective

In FY2026 (ending May 2026), revenue was ¥6,732 million (up 10.8% year on year), operating profit was ¥191 million (up 94.0%), and profit attributable to owners of parent was ¥137 million (versus a loss of ¥68 million in the previous period), showing improvement across all metrics. The one-time nature of the loss factor from Milltel's deconsolidation having run its course, along with the recording of ¥84 million in foreign exchange gains (versus ¥25 million in the previous period) driven by yen depreciation, contributed to boosting profit, reflecting a combination of structural improvement in earning power and a tailwind from external factors. For FY2027 (ending May 2027), operating profit is projected at ¥300 million (up 56.5% year on year), and the sustainability of this recovery trajectory will be a point of focus.

Revenue in the Media Platform Business was ¥975 million in FY2026 (ending May 2026), down 10.0% year on year, with segment profit also down 14.5% year on year as advertising placements on existing media struggled to grow. This coincided with the closure of a beauty-related portal site and upfront investment in overhauling key systems, while the risk of algorithm changes at external search engines also remains. In the Medical Institution Management Support Business, segment profit came to just ¥122 million, down 35.8% year on year, and the decline in profitability of this largest segment, which accounts for 77% of revenue, is weighing on the group's overall profit margin.

Short-term borrowings at the end of FY2026 (ending May 2026) stood at ¥1,086 million, up ¥240 million from the end of the previous period, bringing total interest-bearing debt (short-term borrowings plus current portion of long-term borrowings plus long-term borrowings) to ¥1,422 million. Meanwhile, cash flow from operating activities remained at just ¥98 million, and the interest coverage ratio was 6.2x (an improvement from -7.0x in the previous period), indicating the company is still in the process of recovery. Cash and cash equivalents stood at a healthy ¥1,920 million, but this increase in cash relied on financing activities (disposal of treasury stock, increase in short-term borrowings), making sustained improvement in operating cash flow key to financial soundness.

Growth Strategy

Building a domestic and international ecosystem through deepening the dental medical platform, promoting DX, and expanding the Thailand business

Centered on Okamura Corporation, the company aims to digitalize analog transactions between dental dealers and dental clinics, establishing a delivery platform for dental care that improves transaction efficiency for both parties. It seeks to expand its sales network and customer base by strengthening its partnership with Yoshida Co., Ltd.

The company is promoting the renewal of its core systems and site design, and improving usability through the introduction of AI content. It aims to diversify revenue sources by continuing to actively promote the new media brand "PLUS" and developing new services such as AIO Service (AI Search Optimization), thereby offsetting the decline in revenue from existing media.

The release of the "Dentwave Prime" clinic plan has generated paid membership subscription revenue. The company aims to build a stable revenue base by increasing active members through new service offerings such as inventory management systems and BI tools, and by enhancing its value as a portal for dental-related companies.

Leveraging AVision Co., Ltd.'s specialized POS system expertise, the company is promoting the IT adoption of dental clinics in Thailand. It is advancing NU-DENT Co., Ltd.'s stated goal of "DX of the Thai dental trading business," and is also expanding new services such as support for Japanese doctors opening practices and dental tourism programs.

In March 2025, the company transferred all shares of its consolidated subsidiary Miltel Co., Ltd., discontinuing the Pre-Symptomatic Care & Prevention Platform Business. This achieved a concentration of management resources on the dental medical ecosystem and eliminated the risk of recurrence of the large-scale losses recorded in the previous fiscal year (including a provision for allowance for doubtful accounts of ¥300 million and an impairment loss of ¥154 million).

Last updated: July 17, 2026