Nextgen,Inc.
3842・Standard Market・Information & Communication
Business
Nextgen, Inc. is a company specializing in voice communication IP technology, founded in 2001. It has led the IP-ization of Japan's public telephone network (PSTN migration) since its early stages, and its strength lies in carrier-grade quality with an operating rate of 99.999% (five nines). Its business is composed of two segments: the Voice Communication Business (cloud PBX, SBC, and call recording solutions) and the Cloud DX Business (carrier core solutions for telecom operators and enterprise DX support). Its major customers include leading telecom carriers such as NTT DOCOMO Business and KDDI, as well as government agencies and general corporations. The company has built sales channels through capital and business alliance partners such as EXEO Group, Saxa, NEC Networks & System Integration, and Tsuzuki Denki.
Business Model
For telecom carriers, the company provides one-time sales of large-scale licenses and hardware, while for enterprises it offers subscription-type services such as cloud PBX (U-cube voice), SBC cloud (U-cube friends), and call recording (U-cube rec). Post-delivery maintenance services form a stable, recurring revenue base, and the subscription-based business grew 8.5% year-on-year in FY2026 (ending March 2026). The company is also expanding its Enabler Service model, which allows partner companies to offer services under their own brands, aiming to grow revenue through indirect sales channels.
Company Strengths
The software SBC "NX-B5000" was the first among domestic vendors to obtain connection certifications for Zoom Phone (June 2021), Microsoft Teams Direct Routing (April 2025), and Avaya AXP (November 2024). This certification track record, which is difficult for competitors to replicate in a short period, serves as a differentiating factor, giving the company a competitive advantage in capturing demand for IP conversion among enterprises.
The company has entered into capital and business alliances with EXEO Group, Saxa, NEC Networks & System Integration, Tsuzuki Denki, and Iwatsu Communications, among others, institutionalizing sales and technical collaboration. NTT DOCOMO Business is a major customer accounting for 10.6% (¥449,047 thousand) of FY2026 (ending March 2026) revenue, while the Foundation for Construction Skilled Human Resources Development accounts for 14.4% (¥612,164 thousand). This has formed a stable order base underpinned by long-term contracts.
Founded primarily by former NTT engineers, the company has transferred the quality and reliability technologies cultivated in software development for telecom carriers—where an uptime of 99.999% (five nines) is required—to its enterprise cloud services. The company has also obtained ISMS international standard certification (acquired in December 2023) and has established a system in which quality control personnel are assigned to all development projects.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years bottomed out in FY2023 (ending March 2023) at ¥3,053 million and has continued on a recovery trend, reaching ¥4,257 million in FY2026 (ending March 2026), significantly exceeding the level seen in FY2022 (ending March 2022) of ¥3,750 million. Operating profit expanded roughly tenfold, from ¥31 million in FY2023 (ending March 2023) to ¥328 million. In FY2026 (ending March 2026), the revenue increase effect absorbed the rise in fixed costs centered on personnel expenses (SG&A expenses of ¥1,250 million, up 8.2% year on year), achieving an operating margin of 7.7% and ROE of 12.8%. As external factors, the completion of the IP transition of the public telephone network (2024) and the liberalization of fixed-line number portability have boosted corporate demand for IP transition, while the rapid expansion of AI utilization needs has also contributed to increased inquiries for call recording and voice recognition solutions. The order backlog of ¥2,526 million (up 21.0% year on year) enhances revenue visibility for the coming periods.
Growth Strategy
Pursuing sustainable growth through subscription-based revenue expansion, capturing DX demand, and LignApps merger synergies
As the discontinuation of dedicated hardware PBX production progresses, the number of contracts for cloud PBX "U-cube voice" has increased substantially. The service is being deployed to general corporations and government agencies via partners such as KDDI, Tsuzuki Denki, and Panasonic Connect. The U-cube series as a whole achieved a 35.5% year-on-year increase, entering a phase where replacement demand is materializing in earnest.
The company is promoting the "Enabler Service," through which it licenses its software PBX and SBC to partner companies, enabling those partners to offer cloud services under their own brands. By deepening indirect sales channels through the 21 member companies of "NextGen CaMP," the company aims to achieve market penetration beyond the reach of its own sales resources.
DX-related projects are expanding, including BPM consulting for a government-affiliated organization (net sales of ¥612 million from the Japan Construction Skilled Workers Development Organization), MVNO infrastructure development, and the installation of a call recording system into a major telecom carrier's SaaS-based AI communication service. Cloud DX Business net sales reached ¥1,718 million, up 17.7% year on year.
Effective April 1, 2026, the company absorbed LignApps (CPaaS, UCaaS, cloud applications/IT consulting business) through merger. By consolidating management resources within the group, the company is accelerating business expansion with voice communication cloud services positioned at the core of its growth strategy. Starting from FY2027 (ending March 2027), the company will transition to non-consolidated financial reporting, and the financial effects of merger synergies are expected to become apparent.
Last updated: July 19, 2026