RAKUS Co., Ltd.

Business Details

A segment that plans, develops, and operates in-house cloud services contributing to corporate operational efficiency and value enhancement. Offers Rakuraku Seisan (expense reimbursement), Rakuraku Meisai (electronic invoice issuance), Rakuraku Hanbai (sales management), Rakuraku Kintai (attendance management), Rakuraku Jido Outai (email sharing), Rakuraku Mail Marketing, and other services. Primarily serves small and medium-sized enterprises, with a group structure providing sales, development, and customer success on an integrated basis. Net sales for FY2026 (ending March 2026) were ¥51,770 million, accounting for approximately 85.9% of consolidated net sales, making it the core business.

Recent Overview

Profit margin improved significantly due to sales growth and optimization of advertising expenses, with segment profit margin rising to 30.9%.

In FY2026 (ending March 2026), the Cloud Business achieved net sales of ¥51,770 million (up 23.7% year on year) and segment profit of ¥16,027 million (up 71.1% year on year). The flagship service Rakuraku Seisan continued to accumulate new orders despite market maturation, with price revision effects also contributing. On the profit side, in addition to the effect of higher sales, the segment profit margin improved substantially from 22.4% in the prior period to 30.9%, driven by optimization of advertising expenses in light of market conditions. The company is also accelerating the expansion of generative AI integration into products and the implementation of operational automation. Following the transfer of the IT Human Resources Business in April 2026, the company has shifted to a structure focused exclusively on the Cloud Business. Under the next medium-term management plan (FY2027 (ending March 2027) through FY2029 (ending March 2029)), the company has set targets of achieving a CAGR of 15% or more in Cloud Business net sales and achieving the Rule of 50 (from FY2028 (ending March 2028) onward).

Key Products

Growth Drivers

• Continued expansion of corporate demand for operational efficiency against a backdrop of work-style reform and labor shortages
• Improved profitability driven by price revision effects for core services, centered on Rakuraku Seisan
• Improved investment efficiency and profit margin through optimization of advertising expenses
• Enhanced value proposition through expanded generative AI integration into products and accelerated implementation of operational automation
• Continued capture of demand related to Electronic Bookkeeping Act and Invoice System compliance in Rakuraku Meisai
• Concentration of management resources into the Cloud Business following the transfer of the IT Human Resources Business (shift to a specialized structure)
• Balancing growth and high profitability with the goal of achieving the Rule of 50 under the next medium-term management plan

Risks

• Progressing market maturation in some business areas, particularly the expense reimbursement market
• Intensifying competitive environment due to an increase in competitors offering similar services
• Changes in the demand environment as the segment of non-adopters shifts toward a segment that carefully evaluates the effects of adoption
• High dependence on revenue from a specific service (Rakuraku Seisan)
• Ongoing capital expenditure burden for infrastructure such as servers (tangible fixed asset acquisition expenditure of ¥1,044 million in FY2026, ending March 2026)
• Information security risk (given the nature of the SaaS business, which handles large volumes of confidential and personal information of client companies)
• Business portfolio concentration risk associated with the shift to a Cloud Business-only structure following the transfer of the IT Human Resources Business