Fuller, Inc.
387A・Growth Market・Information & Communication
Fuller, Inc.
387A・Growth Market・Information & Communication
Business
Fuller, Inc. operates a single-segment "Digital Partner Business (Single Segment)" that provides business development consulting, UI/UX design, system development, and data analysis in an integrated manner, primarily for major domestic corporations. 88.0% of sales are to listed companies or large corporations with group sales of ¥100 billion or more, and 96.6% are direct transactions. Creative talent (engineers, designers, data scientists, and directors, comprising approximately 80% of employees) works alongside clients as "one team." The company also owns its proprietary app analytics service "App Ape" and listed on the Tokyo Stock Exchange Growth Market in July 2025.
Business Model
Client Work (outsourced work such as smartphone app development) accounts for approximately 94.5% of revenue, while the app analytics service "App Ape" makes up the remaining approximately 5.5%. Client Work is a long-term, continuous outsourcing model in which a dedicated team is organized for each client, providing an end-to-end service from planning through development and operation, primarily using internal resources. By maintaining a direct transaction ratio of 96.6%, the company sustains high profitability while forming a virtuous cycle in which joint case studies with clients for PR purposes directly contribute to branding and the acquisition of new orders.
Company Strengths
In FY2025 (ended June 2025), 88.0% of net sales came from listed companies or major enterprises with group-wide net sales of ¥100 billion or more, and 96.6% of net sales came from direct transactions with end users. The company has built direct relationships with major clients such as Sumitomo Corporation (16.1% of net sales), achieving a high-profitability structure that eliminates intermediary margins and deep collaborative relationships with clients.
The company provides business development consulting, UI/UX design, iOS/Android app development, web front-end, server-side, cloud infrastructure operation, and business growth support in an integrated manner, primarily using internal resources. This clearly differentiates it from other system development companies and design companies by avoiding the delays, cost increases, and quality deterioration that arise when multiple vendors are engaged.
Through "App Ape," an app analytics service operated since the company's founding, the company has accumulated usage trend data such as MAU and usage time in the smartphone app market. This data and expertise are widely utilized in new proposal activities and business planning and development, contributing to differentiation from competitors. In FY2025 (ended June 2025), research and development expenses of ¥8,734 thousand were allocated to the continued enhancement of App Ape's system development.
ENVALITH's Perspective
Performance Trend
FY2025 (ended June 2025) achieved a turnaround to profitability, with net sales of ¥2,009 million, operating profit of ¥190 million, and net income of ¥197 million. However, in the cumulative nine months of Q3 FY2026 (ending June 2026), net sales remained flat at ¥1,428 million (down 0.5% year on year), while cost of sales expanded due to aggressive hiring of creative personnel and increased spending on AI tools, causing the gross margin to decline from 42.5% to 34.9%. SG&A expenses also increased due to IPO-related costs and higher personnel expenses, causing operating profit to fall sharply to ¥41 million (down 77.6% year on year). Ordinary profit was maintained at ¥88 million thanks to ¥57 million in subsidy income (a one-time item), but underlying earning power has declined significantly. The full-year forecast remains unchanged at net sales of ¥2,056 million, operating profit of ¥55 million, and net income of ¥113 million. In terms of financial position, the equity ratio improved to 66.6% (from 53.9% at the previous fiscal year-end), and financial soundness is being maintained.
Growth Strategy
Revenue expansion and improved profitability through expanded personnel recruitment, recovery of utilization rates, and accumulation of new projects
The company continues to strengthen recruitment of creative talent such as engineers and designers to expand order-taking capacity. Upfront investment in recruitment and labor costs is currently weighing on profitability, but the policy is to leverage improved utilization rates to drive medium- to long-term revenue growth.
Regarding the utilization rate, which declined in the first half following the completion of a large-scale project, the company had begun working on multiple new development projects as of the third quarter and is on a recovery trend. Reflecting this in revenue from the second half onward is key to achieving the full-year forecast.
Through sales collaboration with Yappli Inc. and Dentsu Group companies, the company has secured sales channels that complement its own sales capabilities. It aims to strengthen access to major corporate clients and stabilize project acquisition.
By leveraging its Niigata base, the company is promoting the recruitment of regional creative talent, securing personnel in an environment with less intense recruitment competition compared to the greater Tokyo area. It has also made use of a one-time location promotion subsidy from Niigata Prefecture.
The company is actively investing in tools to promote AI utilization and advancing the introduction of generative AI into its development processes. While this currently represents a cost increase factor, the aim is to achieve medium- to long-term productivity gains and strengthen competitiveness.
Last updated: July 17, 2026