Ubiquitous AI Corporation
3858・Standard Market・Information & Communication
Business
Ubiquitous AI Corporation develops embedded software in-house for IoT, automotive, and industrial equipment applications, while also conducting import sales and technical support of overseas software, contract development engineering, and sales of statistical and numerical data analysis software. The group consists of three companies, including consolidated subsidiaries Grape Systems Co., Ltd. (embedded software and printer-related products) and Lightstone Co., Ltd. (sales of scientific and technical software). Its main customers range from the planning, development, and design departments of electronics and electrical equipment manufacturers to universities and government-affiliated research institutions. Through M&A activity since 2023, the group has rapidly expanded in scale, with net sales reaching ¥3,924 million in FY2026 (ending March 2026).
Business Model
In-house developed products (QuickBoot, security, database, etc.) generate recurring revenue through royalty-based licenses, while imported overseas software (BIOS, Bluetooth, etc.) provides stable distribution revenue through import sales and technical support. Contract development is centered on ongoing projects from existing clients, supplemented by license revenue from Data Content "YOMI". In the Analysis Software Business, sales of packaged software to universities and research institutions serve as a stable revenue source, and revenue is diversified through the combination of these four areas.
Company Strengths
Ubiquitous QuickBoot, a high-speed boot software based on patented technology, had surpassed cumulative shipments of 70 million units as of FY2023 (ended March 2023), and has a track record of adoption by in-vehicle device manufacturers such as DENSO TEN. Through a royalty-type licensing model, a structure has been established that generates recurring revenue linked to shipments of adopted devices.
The company holds four business areas—proprietary product development (Software Products domain), import and sale of overseas products (Distribution domain), contract development (Services domain), and sales of data analysis software (Analysis Software Business)—thereby avoiding excessive dependence on any single business. For FY2026 (ending March 2026), the revenue composition ratios of each area are dispersed at 19.7%, 32.5%, 24.1%, and 23.7%, respectively.
The company has completed implementation and verification of NIST-standardized FIPS 203, 204, and 205, and has also completed implementation and verification of FALCON and HQC, which are still undergoing standardization, based on their interim specifications. In addition, the company has achieved visibility into implementing post-quantum cryptography on Arm Cortex-M-based 32-bit microcontrollers, demonstrating the potential for deployment in low-cost IoT products.
ENVALITH's Perspective
Performance Trend
Revenue grew to ¥4,139 million in FY2025 (ending March 2025) following a sharp expansion driven by M&A effects in FY2024 (ending March 2024) (¥3,479 million), but fell back to ¥3,924 million in FY2026 (ending March 2026) (down 5.2% year on year). In the Software Products area, royalty revenue from security and OS-related products declined significantly (down 14.1% year on year), and in the Software Services area, contract development also decreased due to changes in existing customers' development plans and other factors. Selling, general and administrative expenses increased to ¥1,709 million (up 5.1% year on year), exceeding gross profit of ¥1,508 million, resulting in an operating loss of ¥201 million. In addition, an impairment loss of ¥219 million, including a goodwill impairment of ¥137 million at subsidiary Grape Systems, was recorded as an extraordinary loss, causing net loss to expand to ¥519 million. As an external factor, cost pressures from US tariff measures, geopolitical risk, and domestic price increases are hindering profitability improvement. The Data Analytics Business (Analysis Software Business), which alone maintained profitability (segment profit of ¥44 million), is partially absorbing the Group's losses.
Growth Strategy
Combining organic growth of 5% per year with continuous M&A, the company aims to achieve net sales of ¥5.0 billion or more and a CAGR of 10% by FY2028 (ending March 2028)
The former four segments were consolidated into two segments, "Software Business" and "Analysis Software Business," transforming the business model to enable all-around support for customers' software needs. Integration of the organizational structure and revision of the management control system aim to accelerate decision-making.
The company is promoting the horizontal expansion of high-speed boot products to other products, expanding sales in security-related fields for automobiles and IoT devices, and capturing demand for BIOS products. Optimization of the human resources portfolio is also being carried out in parallel, and price revision negotiations for contract development unit prices are underway, but improving profitability is expected to take time.
Inorganic growth is explicitly stated in the medium-term management plan (2026–2028). The company aims for continuous M&A to strengthen its product lineup and expand its customer base, but recorded a goodwill impairment for Grape Systems in FY2026 (ending March 2026), leaving challenges in realizing the effects of M&A.
The earnings forecast for FY2027 (ending March 2027) is based on the premise of continuing upfront investment. By executing long-term borrowings of ¥1,000 million, the company expanded its cash on hand to ¥1,995 million, securing investment capacity. However, an operating loss of ¥200 million and a net loss of ¥400 million are also expected for FY2027 (ending March 2027), and the timing of investment recovery remains unclear.
Last updated: July 19, 2026