DIGITAL HEARTS HOLDINGS Co., Ltd.
3676・Prime Market・Information & Communication
Business
Digital Hearts Holdings operates under the corporate mission of "SAVE the DIGITAL WORLD" as a pure holding company with 22 consolidated subsidiaries and 4 equity-method affiliates (as of the end of FY2026, ending March 2026). The company is organized into two segments: the DH Group Business (net sales of ¥23,131 million), which focuses on debugging and localization for console and mobile games, and the AGEST Group Business (net sales of ¥15,995 million), which handles QA and security testing for enterprise systems. Major customers include game makers (Mario Club Co., Ltd. accounts for 12.1% of net sales) and domestic and overseas enterprise system development companies. The company has overseas offices in the United States, Canada, the United Kingdom, China, South Korea, Vietnam, and elsewhere, deploying its services globally.
Business Model
For game debugging, the company leverages a network of Lab. sites with strategically deployed temporary testers to flexibly provide human resources in line with clients' fluid development schedules. For enterprise-oriented QA, specialized engineers handle system testing, test automation, security diagnostics, and similar work. In both areas, projects tend to have short periods between order receipt and service delivery, and revenue is recognized in line with service provision. In recent years, the company has also been promoting the development of product-based revenue models, such as the AI testing tool "TFACT" and the SBOM management tool "SBOM Archi".
Company Strengths
Since its founding, the company has specialized in game debugging, building an extensive fleet of dedicated testing equipment (including equipment dedicated to new-generation hardware) and a nationwide network of Lab. sites. It has maintained strong customer relationships with game makers over a long period, and its securities report explicitly states that it holds "an overwhelming share within an oligopolistic market." The achievement of double-digit revenue growth during the Nintendo Switch 2 launch period corroborates the robustness of this share.
The company has fully rolled out translation and LQA solutions utilizing its proprietary game-specialized AI translation engine "ella," which contributed to growth in translation and LQA projects in FY2026 (ending March 2026). This dedicated engine, capable of handling the context and nuances of game content, is a proprietary technology that competitors cannot easily replicate in the short term, and it serves as a differentiating factor in winning global projects.
By operating both the game-oriented DH Group Business (operating margin of approximately 9.7%) and the enterprise-oriented AGEST Group Business (operating margin of approximately 2.4%), the company diversifies its dependence on any single market. In FY2026 (ending March 2026), an increase in profit at the DH Group Business offset a decline in profit at the AGEST Group Business, securing group-wide operating profit of ¥2,626 million, up 8.1% year on year.
ENVALITH's Perspective
Performance Trend
Revenue expanded rapidly from ¥29,179 million in FY2022 to ¥36,518 million in FY2023, then moved sideways at ¥38,790 million in FY2024, ¥39,749 million in FY2025, and ¥38,929 million in FY2026. FY2026 revenue declined 2.1% year on year, weighed down by the deconsolidation of a subsidiary following its sale and a decline in AGEST Group revenue. Meanwhile, operating profit bottomed at ¥2,040 million in FY2024 and recovered for two consecutive periods to ¥2,430 million in FY2025 and ¥2,626 million in FY2026. Net income attributable to owners of parent staged a sharp recovery from ¥177 million in FY2024 to ¥629 million in FY2025 and ¥1,182 million in FY2026, aided by external tailwinds such as the launch of the Nintendo Switch 2 and a narrowing of extraordinary losses (valuation losses on investment securities fell from ¥1,184 million in the prior period to ¥345 million in the current period), which supported the improvement in profitability. Operating cash flow remained stable at ¥3,225 million.
Growth Strategy
Maximizing growth potential through three axes: DH global expansion, AGEST's AI-ready transformation, and CVC investment
Through the acquisition of HUWIZ SOLUTIONS INC. as a subsidiary (November 2025), the opening of a new base in Thailand, and business alliances with companies in the US and Singapore, the company is building a one-stop global provision structure covering debugging, translation LQA, and Multilingual Voice Recording. It aims to capture the increase in simultaneous worldwide game title releases and drive the acquisition of global clients.
The AI testing tool "TFACT" and the SBOM management tool "SBOM Archi" were launched in FY2026 (ending March 2026). The company is promoting the construction of a new revenue model that does not depend on the number of engineers, and is responding to demand for AI-utilization consulting. Reskilling of engineers is also being strengthened in parallel.
At the Board of Directors meeting on March 19, 2026, a resolution was passed to establish a new CVC division. With an annual budget target of ¥500 million, the company will invest in companies possessing technologies, business models, and innovative talent that it does not currently have, accelerating expansion into new markets and domains distinct from its existing businesses. From FY2027 (ending March 2027), "CVC-related business" will be added as a third reporting segment.
The AI-collaborative operations platform "HumanOps OS" is being introduced within the DH Group Business to promote the empowerment of personnel. The company is actively expanding AI utilization across services, operations, and back-office functions overall, achieving both improved profitability and a response to labor shortages.
Last updated: July 19, 2026