I'LL INC.

Business Details

Composed of two businesses: the System Solutions business (core system construction and maintenance centered on the core operations package "Aladdin Office") and the Web Solutions business ("CROSS MALL," a unified management platform for multiple online stores, "CROSS POINT," a unified point and customer management platform, etc.). Through its proprietary "CROSS-OVER" strategy, which proposes a combination of "real" and "Web" products, the company supports mid-sized and small-to-medium enterprises in improving operational efficiency and strengthening sales capabilities. The company has strengthened its profitability structure through an integrated sales-and-production framework in which sales staff and system engineers are placed in the same organization.

Recent Overview

Net sales up 10.2% and operating profit up 22.4% in the cumulative third quarter, marking a significant profit increase; full-year forecast maintained

For the cumulative third quarter of FY2026 (ending March 2026) (August 2025 to April 2026), net sales were ¥15,543 million (up 10.2% year on year), operating profit was ¥4,241 million (up 22.4% year on year), and the operating profit margin was 27.3% (versus 24.6% in the same period of the previous year), reflecting a substantial improvement in profitability. Recurring (stock-type) revenue reached ¥6,883 million (up 12.1% year on year), with accumulation accelerating. Although there were hardware delivery delays due to semiconductor shortages, continued orders for large-scale projects, stable progress in the development process, and revisions to customer prices in response to rising procurement costs contributed to results. Non-operating expenses decreased sharply by 98.7% year on year to ¥1 million (versus ¥68 million in the same period of the previous year), boosting ordinary profit. In September 2025, the company introduced a stock-granting ESOP trust, establishing an employee incentive plan. There has been no change to the full-year earnings forecast (net sales of ¥20,700 million, operating profit of ¥5,500 million).

Key Products

Growth Drivers

• Continued growth in demand for systems among mid-sized and small-to-medium enterprises, driven by expanding DX investment needs
• Improved profit margins through enhanced project accuracy and strengthened project management under the integrated sales-and-production framework
• Expansion of a stable revenue base through the accumulation of recurring (stock-type) business (monthly maintenance and cloud service usage fees)
• Rising contract unit prices due to the increase in CROSS MALL's monthly usage fee and the shift toward the mid-sized and large enterprise market
• Improved order-winning competitiveness through strengthened partnerships and the accumulation of industry-specific implementation case studies
• Development support and operational efficiency gains through AI utilization (accelerated design and verification processes, automated code completion)
• Shortened development periods and enhanced scalability through the transition to a microservices architecture

Risks

• Cost increase pressure from rising labor costs and price hikes on some procured goods
• Risk of hardware delivery delays due to continued semiconductor shortages caused by AI-driven demand
• Impact on the domestic economy from soaring raw material and energy prices and geopolitical risks
• Increased quality assurance costs due to more sophisticated customer requirements, more complex specifications, and shorter delivery times in system development
• Risk of intensifying competition associated with the shift toward the mid-sized and large enterprise market
• Development investment burden associated with the transition to a microservices architecture