SCAT Inc.

Business Details

Targeting beauty salons and beauty dealers as primary customers, the company provides an integrated one-stop offering of in-house developed POS/customer management systems, customer acquisition support tools, electronic medical charts, and more. Operating from 7 locations nationwide, while system sales (physical product sales) remain the pillar of revenue, the company is strategically pursuing a shift toward a stock-type revenue model centered on maintenance, web content, and subscription-based cloud services. It has been certified by the Ministry of Economy, Trade and Industry as a DX-certified business operator and IT introduction support business operator, and its products are eligible for the IT Introduction Subsidy.

Recent Overview

Revenue increased but profit declined; new product launches and acceleration of shift to stock-type revenue model

In H1 of FY2026 (ending October 2026) (November 2025 - April 2026), the Beauty ICT Business achieved revenue of ¥771 million (up 2.4% YoY), securing revenue growth, while segment profit declined to ¥43 million (down 5.1% YoY). The number of users subject to lease replacement in the current period is limited because they correspond to the low-sales-period users from the COVID-19 pandemic (FY2020-2021), resulting in a year with fewer eligible replacement cases. Meanwhile, the company is actively promoting measures to shift toward a stock-type revenue model, including growth in cloud karte orders, the launch of Halca -connect- sales in March 2026, and the start of the joint project "Beauty Salon Management Support Program" with the Business Services segment.

Key Products

Growth Drivers

• Accumulation of stock-type revenue through expanded adoption of web content such as cloud karte (electronic medical charts)
• Increase in the proportion of subscription-based business through Halca -connect-, launched for sale in March 2026
• Upgrade of the VID cloud system and integration of the customer base through the absorption-type merger with VID Corporation (June 2025)
• Provision of added value to existing customers and revenue expansion through the joint project "Beauty Salon Management Support Program" with the Business Services segment
• Development of new frameworks and next-generation services through AI utilization (POS x CRM x AI system)
• Increase in inquiries due to eligibility for the IT Introduction Subsidy through certification as a DX-certified business operator and IT introduction support business operator by the Ministry of Economy, Trade and Industry
• Strengthening of new user acquisition measures triggered by the release of Sacla PREMIUM Plus - DX Partner for Beauty -
• Expansion of the customer base through market development for beauty dealers via DEALERS+ and industry-wide DX promotion

Risks

• Since system sales (physical product sales) depend on the lease replacement cycle, FY2026 (ending October 2026) is a year in which the number of eligible users is low, as the users subject to replacement correspond to the low-sales-period users from the COVID-19 pandemic (FY2020-2021), creating a risk of limited replacement demand
• During the transition period toward a stock-type revenue model, fluctuation risk in system sales (physical product sales) may affect revenue
• Risk of decline in the existing customer base due to market contraction in the beauty industry and salon closures, etc.
• Cybersecurity risks such as information leakage and unauthorized access (increasing in importance as cloud services expand)
• Risk of intensified competition with other companies amid the rapid advancement of AI and DX technologies