bBreak Systems Company,Limited
3986・Standard Market・Information & Communication
Business
b-broad Systems Co., Ltd. is an IT vendor established in 2002 and listed on the Growth Market of the Tokyo Stock Exchange. Its core business consists of two pillars: the Package Business, which develops and sells the cloud ERP "MA-EYES" for service industries (system development, staffing, advertising, etc.), and the System Integration Business, which provides Java-specialized On-site System Development Service and IT Staffing Service. Its main customers are mid-sized service industry companies with 100 to under 1,000 employees, and the product is offered in three formats: SaaS version, one-time installation version, and scratch development. The company operates on a standalone basis and does not form a corporate group.
Business Model
The Package Business generates revenue through a two-tier structure: lump-sum consideration at the time of ERP implementation (flow-type) and recurring usage fees (stock-type). The company differentiates its customer segments by offering a SaaS version, a low-entry-barrier offering that can be operational within as little as three business days, and a full-implementation version, a high-value-added offering based on a semi-order approach. The System Integration Business secures stable revenue through on-site development and staffing services, while the company optimizes utilization rates by flexibly reassigning engineers between the two businesses.
Company Strengths
The company employs a "semi-order" method that leverages the foundation of its standard packages while developing client-specific functions in a manner similar to scratch development. This resolves the challenges of conventional ERP systems that force changes to business processes, lowering the barrier to ERP adoption for mid-tier service companies with budget constraints. Since the release of MA-EYES in 2005, the company has continued refining this method for 20 years.
As of the end of FY2025 (ended June 2025), interest-bearing debt balance was zero. Cash and deposits stood at ¥1,704 million, and net assets were ¥1,714 million against total assets of ¥2,292 million, indicating high financial soundness. The company also actively manages funds through time deposits and securities, securing sufficient capacity for business expansion and investment.
The company has built an engineer workforce capable of supporting both the Package Business and the System Integration Business, flexibly reallocating personnel according to demand fluctuations. In FY2025 (ended June 2025), amid a decline in Package Business sales, engineers were shifted to the SI business, resulting in SI business sales of ¥651 million (up 10.0% year on year) and segment profit of ¥154 million (up 13.5% year on year).
ENVALITH's Perspective
Performance Trend
For the cumulative nine months of the third quarter of FY2026 (ending March 2026), sales were ¥1,028 million (down 2.3% year-on-year), operating profit was ¥99 million (up 11.7%), ordinary profit was ¥96 million (up 7.4%), and quarterly net profit was ¥75 million (up 4.2%). Cost of sales came to ¥557 million and SG&A expenses to ¥372 million, with overall expenses compressed; the gross profit margin held nearly flat at 45.8% (versus 45.9% in the same period of the prior year), and the reduction in SG&A expenses directly contributed to the improvement in operating profit. On the financial side, total assets expanded steadily to ¥2,416 million (up ¥124 million from the previous fiscal year-end), and net assets rose to ¥1,762 million (up ¥48 million). Over the past five fiscal years, operating profit had peaked at ¥176 million in FY2023 before declining to ¥110 million in FY2025, but the full-year forecast for FY2026 stands at ¥142 million (up 29.3% year-on-year), indicating a clear recovery trajectory. In terms of the external environment, domestic companies' IT investment needs remain stable and demand for engineers continues to hold at a high level, though uncertainty stemming from exchange rate fluctuations and geopolitical risks could affect corporate investment decisions going forward.
Growth Strategy
Advancing the profit structure through a three-pronged approach: development of next-generation MA-EYES, expansion of SaaS sales, and strengthening of the System Integration Business
New orders for the non-customized SaaS version have been trending steadily above plan, accelerating the accumulation of stock-type revenue. The aim is to enhance revenue stability and predictability by expanding recurring usage fee income. Package Business sales for the cumulative nine months of FY2026 (ending June 2026) totaled ¥549 million.
The company has clearly stated its policy of prioritizing engineer assignments to R&D projects, concentrating management resources on the development of next-generation products. A strategic decision has been made to prioritize strengthening future product competitiveness, even at the partial expense of short-term revenue in the System Integration Business.
Against a backdrop of solid IT demand, unit prices, man-hours, and sales have been trending above plan. By securing external freelance resources through Humalance, the company is strengthening its order response capacity, absorbing fluctuations in Package Business development man-hours while generating stable revenue. Cumulative sales for the third quarter totaled ¥479 million.
Last updated: July 17, 2026