Showcase Inc.

Business Details

A SaaS segment supporting companies' website optimization and conversion rate improvement. It comprises the flagship "NaviCast Series" (including the EFO tool "FormAssist"), the "ProTech Series" for online identity verification/eKYC, the "Omotenashi Suite" platform connecting companies and customers, and joint DX support development (cloud integration) with major corporations. Its customer base spans a wide range of industries including financial institutions, telecom carriers, and secondhand dealers, and it maintains a stable earnings structure centered on subscription-based recurring revenue.

Recent Overview

Profit margin improved significantly due to expanding eKYC demand and improved cost structure, achieving over 400 cumulative adoptions.

In FY2026 (ending March 2026, an irregular 15-month fiscal period), the DX Cloud Business recorded net sales of ¥1,376 million and segment profit of ¥534 million. The profit margin improved substantially to 38.8% from 29.7% in the prior period. The cumulative number of companies adopting ProTech ID Checker surpassed 400, steadily growing against the backdrop of the amendment to the Act on Prevention of Unauthorized Use of Mobile Phones effective April 2026 and the enforcement of the amended Act on Prevention of Transfer of Criminal Proceeds effective April 2027. In February 2025, the company began offering "NaviCast AI-OCR" and "ProTech My Number IC Authentication." Acquisition of "SOC 2® Type 2" certification has enhanced credibility with major financial institutions and others. Depreciation and amortization decreased substantially year over year, and the fading impact of the large-scale impairment (software) recorded in the prior period contributed to the improved profit margin.

Key Products

Growth Drivers

• A sharp expansion in demand for eKYC and My Number card identity verification driven by the amended Act on Prevention of Transfer of Criminal Proceeds scheduled to take effect in April 2027 and the amended Act on Prevention of Unauthorized Use of Mobile Phones effective April 2026
• Revenue expansion from growth in the cumulative number of companies adopting ProTech ID Checker (from over 380 to over 400 companies) and increases in unit price and usage volume
• Enhanced functionality and higher customer unit prices for the NaviCast and ProTech Series through the introduction of new services such as "NaviCast AI-OCR" and "ProTech My Number IC Authentication"
• Accelerated new customer acquisition and improved credibility with major financial institutions and telecom carriers through acquisition of "SOC 2® Type 2" certification
• Expansion of the Cloud Integration Business through DX support deployment to AI Fusion Capital Group companies following participation in the AI Fusion Capital Group
• Continued expansion of the domestic DX market and rapid growth of the non-face-to-face transaction market

Risks

• Revenue volatility risk in the Cloud Integration Business due to lengthening order lead times
• A declining trend in account numbers across the SaaS business overall (impact of services that have been offered for an extended period)
• Risk of additional impairment of fixed assets (software) related to the DX Cloud Business (a large-scale impairment was already recorded in FY2024 (ended December 2024))
• Information security incident risk amid increasingly sophisticated cyberattacks (response being strengthened through SOC 2® Type 2 acquisition)
• Risk of intensifying competition with competitors and delayed response to technological innovation (e.g., generative AI)
• Risk of timing misalignment in demand expansion due to changes or delays in the legal amendment schedule