System D Inc.
3804・Standard Market・Information & Communication
Business
System D Inc. was founded in 1982 and is headquartered in Kyoto City as an independent software company. It develops and provides in-house packaged software specialized in six industry/business domains: the comprehensive school information system "Campus Plan" series (top industry share among universities), the cloud-based school administration support system "School Engine" for public elementary, junior high, and high schools, the local public accounting package "PPP Ver.5" (adopted by over 1,000 municipalities nationwide), the "Hello" series for fitness and leisure facilities, and dispensing pharmacy billing systems, among others. The group conducts business including subsidiaries Think Co., Ltd. (for pharmacies) and Nakamura Bokujo Co., Ltd. (AI Software Contract Development & Consulting). Listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The company combines a flow business consisting of licensing fees, customization, implementation support, and hardware sales for its proprietary packaged software, with a stock business generating recurring revenue from support services and cloud service provision. In FY2025 (ending October 2025), stock revenue reached ¥2,777 million (up 9.3% year on year), accounting for more than half of total sales and forming a stable revenue base. The company offers both on-premises and cloud-based formats, adopting flexible delivery methods tailored to customer needs.
Company Strengths
The comprehensive university information system "Campus Plan" boasts the top share in the industry for universities, and the public accounting package "PPP Ver.5" has been adopted by over 1,000 municipalities nationwide. "School Engine" for public education also holds the top share among prefectural high schools and special-needs schools. The deep, industry-specific functional coverage raises switching costs, forming a robust customer base.
In FY2025 (ending October 2025), support and cloud service revenue reached ¥2,777 million (up 9.3% year on year), accounting for more than half of net sales. The accumulation of recurring revenue mitigates seasonal fluctuations in business performance while achieving stable profit generation. The operating margin for FY2025 (ending October 2025) remained at a high level of 18.6%, with both net sales and operating profit reaching record highs.
The order backlog for the Software Business at the end of FY2025 (ending October 2025) remained at a high level of ¥3,422 million (up 17.7% year on year). Several large-scale municipal projects scheduled to commence operation in April 2026 have already been secured, and revenue recognition is expected from the following period onward. Orders received also trended above net sales at ¥5,349 million (up 15.8% year on year), functioning as a leading indicator of growth.
ENVALITH's Perspective
Performance Trend
Revenue for the interim period of FY2026 (ending March 2026) (November 2025 to April 2026) was ¥3,027 million (up 8.2% year on year), operating profit was ¥652 million (up 0.0% year on year), and ordinary profit was ¥656 million (up 0.1% year on year). Gross profit increased to ¥1,339 million (up 7.8% year on year), but as SG&A expenses expanded to ¥687 million (up 16.3% year on year), operating profit remained roughly in line with the same period of the previous year. As a result of recording an impairment loss of ¥56 million as an extraordinary loss, interim net income attributable to owners of the parent was ¥410 million (down 8.1% year on year). There has been no change to the full-year earnings forecast (revenue of ¥5,541 million, operating profit of ¥1,028 million), and the progress rate for the interim period stood at 54.6% for revenue and 63.4% for operating profit. Revenue over the past five fiscal years has followed a growth trend, rising from ¥3,842 million in FY2021 to ¥5,032 million in FY2025, and the full-year forecast of ¥5,541 million for FY2026 (ending March 2026) is expected to set a new record high.
Growth Strategy
Pursuing sustainable growth along three axes: expansion of the recurring-revenue business, rollout of next-generation products, and entry into new markets
Continuing to expand recurring revenue from support and cloud services. Recurring revenue for the interim period of FY2026 (ending March 2026) increased 11.0% year-on-year to ¥1,473 million, reaching a level equivalent to 48.6% of total net sales. Deferred revenue balance of ¥1,024 million underpins revenue in the next period.
Continuing to deliver new and upgrade projects for the next-generation comprehensive campus information system "Campus Plan (Campus Plan Smart)". For the next-generation school administration support system "School Engine One", sales activities targeting public schools nationwide commenced following exhibition at an education-sector trade show in fiscal 2026.
Began offering the new version 6.0 of "PPP (Triple P)", which responds to changes in the public accounting system, from April 2026. Entered into a basic agreement regarding the transfer of the "fmSMART" public facility management system business, aiming to create synergies with existing businesses in the facility management field.
Introduced and began operating the cloud-based ticket management system "Smart Hello Ticket" at large-scale facilities including the Tokyo Skytree. Also expanded the cloud-based membership management and fee collection system "Smart Hello" to smaller facilities such as 24-hour gyms and golf schools.
Continuing AI-related contract development and consulting for Nakamura Bokujo Co., Ltd., while also launching a new AI service proof-of-concept trial with an educational institution. Advancing development to implement AI functions in the company's own packaged software in order to strengthen product competitiveness.
Last updated: July 17, 2026