JIG-SAW INC.
3914・Growth Market・Information & Communication
Business
JIG-SAW Inc. is a TSE Growth-listed company founded in 2001, operating a single segment: the Data Control Business. Built around its proprietary robotic automated operation platform "puzzle" and IoT engine "NEQTO," the company provides 24/7/365 management of physical, cloud, and hybrid servers, the cloud security SaaS "Safing," the comprehensive cloud management service "JIG-SAW PRIME," and the IoT-AI dashboard "NEQTO.ai" both domestically and internationally. It operates a triple control center structure with two locations in Sapporo and one in Toronto, Canada, serving major corporate and government clients both in Japan and abroad. The company is also expanding the application areas of its core technologies, including the Autonomous Roller (ARMs) and the vision restoration project (NEW VISION).
Business Model
The core of revenue consists of initial fees charged upon introduction of "puzzle" and subsequent monthly recurring charges (a subscription/recurring model). The churn rate is low, and monthly subscription revenue has hit a record high for 44 consecutive quarters since listing. Added to this are transaction agency fees from the comprehensive cloud management service "JIG-SAW PRIME," IoT-OEM licensing, and spot sales. For FY2025 (ending December 2025), revenue was ¥3,626 million, with an operating margin of 15.2%.
Company Strengths
Under a fully stock-type business model, monthly recurring revenue has hit a new record high for 44 consecutive quarters since the company's listing. A low churn rate underpins cumulative growth, and net sales for FY2025 (ending December 2025) reached a record ¥3,626 million. The company has built a stable revenue base that is resistant to external factors such as inflation, foreign exchange, and geopolitical risk.
The company holds patents related to the control method of its IoT engine "NEQTO" in Japan, the United States, China, Hong Kong, and Taiwan. It also holds a diverse intellectual property portfolio spanning multiple fields, including two patents related to the vision restoration project (NEW VISION) (in Japan, the U.S., five European countries, China, etc.), computer vision technology patents (in Japan and the U.S.), and autonomous construction technology patents (in Japan).
The company's three sites—Sapporo SCC N83 and SCC N44 (located in areas with low natural disaster risk) and TCC in Toronto, Canada (a North American smart city hub)—provide mutual backup functionality, with dual management conducted 24 hours a day, 365 days a year by full-time engineers. This state-of-the-art control center structure, featuring high durability and security, supports continued customer usage.
ENVALITH's Perspective
Performance Trend
Revenue achieved five consecutive years of growth, rising from ¥2,751 million in FY2021 to ¥3,626 million in FY2025. Meanwhile, the operating profit margin had declined for three consecutive years, from a peak of 19.0% in FY2022 to 15.2% in FY2025. However, in the first quarter of FY2026 (ending December 2026) (single quarter), revenue was ¥1,038 million (up 17.4% year-on-year), operating profit was ¥240 million (up 64.2% year-on-year), and the operating profit margin recovered sharply to 23.1%, driven by the winding down of costs associated with the relocation of the new Tokyo head office and fixed-cost leverage from expanding revenue scale. As for the external environment, the stability of the company's fully stock-based business model, which is unaffected by global inflation or shifts in trade policy, was reaffirmed. Full-year earnings guidance is undisclosed, but the company has indicated that revenue is currently expected to reach a record high.
Growth Strategy
Building the next growth axis through global expansion in generative AI and IoT, and the launch of autonomous driving and new services
A fully autonomous system operation service leveraging proprietary agentic AI built on massive big data. Aims to achieve extreme labor savings and extreme precision in customers' system operations, and to expand service coverage to all customer segments by deploying both manned monitoring and AI-based automated monitoring.
JIG-SAW US, INC. is driving the expansion of "NEQTO.ai," a no-code platform that visualizes data collected from IoT devices in real time and provides alerts and insights. The company aims to capture growth in the global industrial IoT market.
Promoting research and development and business design for autonomous driving software in the construction machinery field, aiming to create new revenue sources. Numerous uncertainties remain regarding various business investments, which is one of the reasons for not disclosing full-year earnings guidance.
Continuing to secure orders for monthly billing projects in the core system management business, and driving expansion of comprehensive cloud management through JIG-SAW Prime (total transaction value up 13.8% year on year). Strengthening the revenue base through the launch of new generative AI services in this area.
Focusing on strengthening human capital management to achieve mid- to long-term improvement in corporate value and sustainable growth. Upfront investment in the first quarter of FY2026 (ending December 2026) reached a record high, increasing by approximately ¥38 million year on year.
Last updated: July 17, 2026