GMO GlobalSign Holdings K.K.

Business Details

The largest segment of GMO GlobalSign Holdings. Comprises three pillars: the Electronic Certification Business, which globally deploys GMO GlobalSign-branded SSL server certificates, client certificates, and organization verification; the electronic signature law-compliant electronic contract service "Electronic Seal GMO Sign"; and the domestic IDaaS solution "GMO Trust Login." In Q1 FY2026 (ending December 2026), the segment achieved revenue of ¥3,469 million (up 10.6% year-on-year) and segment profit of ¥348 million (up 27.7% year-on-year), recording both higher revenue and higher profit. It accounts for approximately 62% of consolidated revenue and the majority of consolidated operating profit, making it the core pillar of earnings.

Recent Overview

Q1 FY2026 revenue of ¥3,469 million and profit of ¥348 million, both up sharply; also completed AI-related subsidiary acquisition

In Q1 FY2026 (ending December 2026), the Electronic Certification & Seal Business achieved revenue of ¥3,469 million (up 10.6% year-on-year) and segment profit of ¥348 million (up 27.7% year-on-year). "GMO Sign" saw steady growth in the number of contracts under new plans even after the November 2025 pricing revision. "Trust Login" expanded revenue through the acquisition of large-scale contracts via group synergies. The Electronic Certification Business trended steadily worldwide. As a subsequent event, on April 30, 2026, the company acquired GMO AI Connect Corporation (formerly Strategit Co., Ltd.), which operates an MCP construction platform with API connectors, as a subsidiary for consideration of approximately ¥564 million, accelerating its evolution toward next-generation services for the AI agent era.

Key Products

Growth Drivers

• Continued revenue growth driven by expansion of the electronic contract market and increased recognition of "Electronic Seal GMO Sign" (steady increase in contracts under new plans even after the November 2025 pricing revision)
• Acquisition of large-scale contracts for "GMO Trust Login" through group synergies, and market expansion via new plans such as the "Supply Chain ID Protect Plan" and "Medical Institution Authentication Enhancement Plan"
• Growing demand for enhanced authentication driven by the "Security Measures Evaluation System for Strengthening Supply Chains," scheduled to begin operation in 2027 or later, and the trend toward mandatory and stricter security requirements for medical institutions
• Capturing demand for certificate lifecycle management through "TLS Connect byGMO" (launched April 2026), against the backdrop of increased renewal frequency due to shortened SSL certificate validity periods
• Accelerated evolution toward next-generation corporate services for the AI agent era through the acquisition of GMO AI Connect Corporation (formerly Strategit) as a subsidiary
• Improved profit margins through optimized global staffing and AI utilization to control personnel costs
• Customer acquisition leveraging synergies within the GMO Internet Group ("Internet security, too, is GMO")

Risks

• Risk that increased depreciation expenses from continued investment in high-speed, high-volume electronic certificate issuance systems could pressure profits
• Risk of increased expenses from continued aggressive advertising and human capital investment in "Electronic Seal GMO Sign"
• Foreign exchange risk associated with global operations (a foreign exchange loss of ¥44 million was recorded in the same period last year, narrowing to ¥5 million in the current period)
• Risk of intensifying competition, both domestic and international, in the electronic certification and electronic contract markets
• Risk of damage to credibility as a certificate authority due to WebTrust audit failure or similar events
• Risk of business environment changes due to changes in laws and regulations (such as the Electronic Signature Act)
• Uncertainty risk related to the integration and goodwill calculation for GMO AI Connect Corporation (formerly Strategit)

Business Details

A segment providing internet-based IT infrastructure that supports web services and business systems. In addition to shared, dedicated, and virtual dedicated hosting services, the company offers "CloudCREW byGMO," a managed cloud service covering everything from cloud adoption support to monitoring and operation on behalf of clients. Its strengths lie in over 29 years of infrastructure operation experience and high technical capability including AWS certifications, enhancing its appeal as a public cloud adoption support service capable of comprehensively supporting security measures.

Recent Overview

Revenue and profit both increased sharply, with profit nearly doubling, driven by CloudCREW's large-scale contract wins and higher managed service ratio

In Q1 FY2026 (ending December 2026) (January to March 2026), "CloudCREW byGMO" achieved significant growth in both revenue and profit, with revenue of ¥1,988 million (up 17.4% year-on-year) and segment profit of ¥88 million (up 96.1% year-on-year), driven by the acquisition of large-scale contracts and an increased proportion of highly profitable managed services. Meanwhile, existing rental server (hosting) services continued to show a slowing revenue trend due to intensifying competition, and the company is promoting improvement of its profit structure through consolidation toward highly profitable cloud products.

Key Products

Growth Drivers

• "CloudCREW byGMO" driving higher revenue and profit through the acquisition of large-scale contracts and an increased proportion of highly profitable managed services
• Continued expansion of corporate demand for cloud migration, driven by accelerating societal shift toward cloud adoption
• Competitive differentiation based on strengths including over 29 years of infrastructure operation experience and high technical capability including AWS certifications
• Enhanced appeal as a public cloud adoption support service capable of comprehensively supporting security measures
• Mid- to long-term business expansion through strengthened development and sales structures via active human capital investment

Risks

• Continuation of the slowing revenue trend in existing rental server (hosting) services due to intensifying competition
• Risk of increased expenses from active human capital investment aimed at expanding managed cloud services
• Risk of losing existing customers in shared, virtual dedicated, and dedicated hosting services
• Cost increase pressure from software license fee revisions and similar factors
• Risk of intensifying competition with major cloud vendors in the cloud market

Business Details

Centered on GMO Digital Lab, this segment offers the "GMO Digital Pay" digital gift certificate platform for local governments and businesses, among other services. It leverages know-how cultivated in the Electronic Certification & Seal Business and the Cloud Infrastructure Business to support corporate operational efficiency and value-added enhancement. Positioned as a "next growth field" in the mid- to long-term strategy, it is currently in an investment phase aimed at expanding into new business areas.

Recent Overview

GMO Digital Pay saw strong orders as a target project under the grant program, significantly narrowing the loss

In Q1 FY2026 (ending December 2026), DX Business revenue was ¥254 million (up 19.2% year-on-year), and the segment loss narrowed significantly to ¥15 million (compared with a loss of ¥38 million in the same period last year). The main driver was strong order intake as "GMO Digital Pay" became a target project under the government's Regional Revitalization Emergency Grant for Priority Support Against Rising Prices. Additionally, as a subsequent event, the company acquired GMO AI Connect Corporation (formerly Strategit Co., Ltd.) as a subsidiary effective April 30, 2026 (total acquisition consideration of ¥564 million), accelerating its evolution toward next-generation corporate services for the AI agent era.

Key Products

Growth Drivers

• Continued expansion of orders as "GMO Digital Pay" became a target project under the government's Regional Revitalization Emergency Grant for Priority Support Against Rising Prices
• Continued expansion in the number of stores using "GMO Omise App" and functional expansion into payment and operational improvement areas
• Incorporation of an MCP construction platform with API connectors and evolution toward AI agent-compatible services through the acquisition of GMO AI Connect Corporation (formerly Strategit) as a subsidiary
• Promotion of cross-segment projects leveraging synergies among the three businesses—Electronic Certification & Seal, Cloud Infrastructure, and DX
• Expected expansion of O2O services and AI business areas driven by progress in corporate DX promotion and cloud service utilization

Risks

• Orders dependent on government subsidies and grants (GMO Digital Pay) carry inherent policy change risk
• Risk of revenue decline for "GMO Rakuraku Homepage Seisaku" due to a change in the delivery scheme
• Continuation of segment losses, with the timing of profitability remaining uncertain
• Pressure on profitability of existing services from intensifying domestic and international competition in the internet industry
• Integration and goodwill calculation for GMO AI Connect Corporation remain undetermined, entailing future impairment risk
• As the segment is in an investment phase as a next growth field, short-term earnings contribution remains limited