I-FREEK MOBILE INC.
3845・Standard Market・Information & Communication
Business
AiFreak Mobile Corporation is an IT services company founded in 2000. In its core DX Business, it undertakes software and system development, infrastructure construction, design production, and other contracted work, along with IT engineer staffing, accounting for over 98% of net sales. In its Content Business, the company leverages digital content assets—including e-picture books and characters—accumulated over more than 20 years since its founding, developing both BtoC operations (such as the YouTube channel "Popo Kids") and BtoB operations (corporate content provision and AI collaboration). Its main customers are corporations and municipalities with DX promotion needs, and the company has announced its policy to consolidate both segments into the DX Business from FY2027 (ending March 2027).
Business Model
In the DX Business, IT engineers recruited and trained by the company are dispatched to corporations and local governments, or provided on an outsourcing basis, generating revenue through maximization of utilization rates and billing unit prices. The DX Business segment profit margin for FY2026 (ending March 2026) is 14.3%. In the Content Business, the company monetizes its proprietary digital content assets through distribution on platforms such as YouTube and Netflix, provision of content to corporate clients, and development of new services leveraging generative AI. The provision of AI/DX solutions combining the engineering expertise and content production capabilities of both businesses is positioned as the next revenue pillar.
Company Strengths
In FY2026 (ending March 2026), the DX Business segment achieved segment profit of ¥261 million with a profit margin of 14.3%. This represents a 15.1% year-on-year increase in profit, driven by improvements in the distribution structure, acquisition of higher-value projects, and maintenance of a high utilization rate. Continuous review of recruitment strategy and the establishment of an in-house training system specialized in generative AI are strengthening the talent base.
Through over 20 years of content production and operation since founding, the company has accumulated digital content assets such as e-picture books and characters under its own licenses. It has a track record of corporate collaborations with companies such as Tokai Rika, Plantio, and IT Force, and has also pursued BtoB expansion into Netflix. These assets are being leveraged to both reduce maintenance and operational costs and expand revenue opportunities.
At the end of FY2026 (ending March 2026), the equity ratio stood at 70.8%, with cash and cash equivalents of ¥1,041 million. Total liabilities decreased by ¥137 million (25.8%) year-on-year to ¥395 million. The company also strengthened its capital through the exercise of stock acquisition rights, securing investment capacity including for M&A.
ENVALITH's Perspective
Performance Trend
Revenue for FY2026 (ending March 2026) was ¥1,865 million (down 6.9% year on year), marking a fifth consecutive year of declining revenue. The scale-down has continued, partly due to the impact of the transition to a non-consolidated basis (FY2025, ended March 2025). On the profit side, however, selling, general and administrative expenses were significantly reduced from ¥571 million to ¥436 million, resulting in operating profit of ¥29 million and a swing to profitability (versus an operating loss of ¥62 million in the prior period). Net income also improved to ¥43 million (versus a net loss of ¥111 million in the prior period). The Content Business narrowed its segment loss to ¥7 million through structural reforms including the discontinuation of Mori no Ehonkan. The DX Business functioned as the profit pillar, with revenue of ¥1,829 million and segment profit of ¥262 million. For FY2027 (ending March 2027), revenue of ¥1,670 million and an operating loss of ¥11 million are forecast, raising concerns about a renewed deterioration in the cost structure.
Growth Strategy
Integration of both businesses into the DX Business and expansion into the AI/DX solutions domain, including new business development via M&A
Based on a resolution of the Board of Directors on March 25, 2026, both businesses will be integrated into the "DX Business" from FY2027 (ending March 2027), consolidating the reporting segments into one. The Company will build a service delivery framework combining generative AI implementation, app development, and content production, and promote expansion into the AI/DX solutions domain for corporations and local governments.
The Company is establishing an in-house education and training framework specialized in generative AI utilization, promoting talent development and skill enhancement in the AI field. Through the deployment of trained engineers, it aims to improve technical service quality and increase profitability by acquiring new customers and high-value contracts in the AI domain. Segment profit margin of 14.3% was achieved in FY2026 (ending March 2026).
Following the termination of Mori no Ehonkan, the Company will deploy accumulated e-picture book assets to external platforms such as the YouTube channel "Popo Kids" and Netflix, reducing maintenance costs. It will expand content provision in the BtoB domain through collaborations with Tokai Rika, Plantio, and IT Force, maximizing monetization opportunities from existing IP assets.
The Company is promoting active expansion into new domains, including M&A, optimization of outsourcing and advertising expenses, fundamental improvement of internal operational efficiency through AI utilization, and specialist talent development through investment in human capital, aiming for mid- to long-term growth and enhancement of corporate value. An operating loss of ¥11 million is forecast for FY2027 (ending March 2027), a phase in which the effectiveness of the revenue structure reform will be tested.
Last updated: July 19, 2026