JIG-SAW INC.

Business Details

A single segment encompassing system management (automated monitoring and operation of physical, cloud, and hybrid servers), various IoT-related services (IoT data control via the NEQTO engine), comprehensive cloud management (JIG-SAW Prime), autonomous driving software, and generative AI control (NEQTO.ai). Revenue consists of recurring subscription-based revenue and spot revenue, and the company has an extremely stable revenue structure in which monthly recurring revenue has continued to reach new record highs since its listing. The business is steadily advancing both domestically and internationally.

Recent Overview

In Q1 of FY2026 (ending December 2026), both net sales and operating profit reached new record highs on a quarterly basis.

Net sales for Q1 of FY2026 (ending December 2026) (January to March 2026) were ¥1,038 million (up 17.4% year on year), surpassing ¥1,000 million on a quarterly basis for the first time since the company's founding. Operating profit was ¥240 million (up 64.2% year on year), ordinary profit was ¥242 million (up 60.8% year on year), and quarterly net profit attributable to owners of parent was ¥156 million (up 54.1% year on year), with both operating profit and ordinary profit also reaching new record highs on a quarterly basis. The impact of relocation costs for the new Tokyo head office has fully subsided, and the company achieved high profitability even as early-stage investment continued at a record high level (up approximately ¥38 million year on year). The company announced that it began offering JIG-SAW Lorel.ai from April 2026. Total transaction value for JIG-SAW Prime expanded 13.8% year on year. Full-year earnings guidance for FY2026 (ending December 2026) remains undisclosed due to uncertainties surrounding various business investments.

Key Products

Growth Drivers

• Stable growth of the fully stock-type business (subscription/recurring model), with monthly recurring revenue continuing to reach new record highs since the company's listing
• Acquisition of new customer segments through the April 2026 launch of "JIG-SAW Lorel.ai," a service enabling fully autonomous system operation using proprietary agentic AI
• Expansion of the IoT-AI no-code platform service through NEQTO.ai at the U.S. subsidiary (JIG-SAW US, INC.) and growth of the North American IoT business
• Capturing growing demand for comprehensive cloud management, with JIG-SAW Prime's total transaction value expanding 13.8% year on year
• Creation of new revenue sources through the launch of the autonomous driving software business in the construction machinery field
• Capturing global demand amid the global industrial IoT market being projected to expand to $4,718.3 billion by 2033
• Realization of medium- to long-term corporate value enhancement and sustainable growth through strengthened human capital management

Risks

• Pressure on operating margin from continued increases in early-stage investment (R&D expenses, personnel costs, global expansion costs), with early-stage investment amounts continuing to reach record highs
• Numerous uncertain factors, including expansion of the existing data control business, launch of new generative AI services, the North American IoT business, and the launch of the autonomous driving software business for construction machinery, resulting in the inability to disclose full-year earnings guidance for FY2026 (ending December 2026)
• Risk of revenue instability due to fluctuations in spot revenue (a structure combining recurring subscription revenue and spot revenue)
• Impact of exchange rate fluctuations and geopolitical risks (U.S. trade policy, China's economic slowdown, Middle East situation, etc.) in global expansion
• Uncertainty regarding customer acquisition and investment recovery risk during the launch phase of new services (such as JIG-SAW Lorel.ai)
• Cash flow burden associated with repayment of long-term borrowings (fixed liabilities of ¥487 million plus current portion of ¥169 million)