Needs Well Inc.
3992・Prime Market・Information & Communication
Business
Needs Well Inc. is an independent information services company founded in 1986. It has three subsidiaries—Zeroichi Seisaku, B.O. Studio, and Comsoft—and operates three service lines: Business System Development, IT Infrastructure, and Solutions. Its major clients span a wide range of industries including finance (insurance, banking, credit), logistics, telecommunications, and distribution/services/public sector. In addition to direct contracts with end users, the company also receives orders via system integrators and manufacturers, and is involved in the entire development lifecycle from planning and requirements definition through to maintenance and operation. The company is listed on the Prime Market of the Tokyo Stock Exchange. Net sales for the fiscal year ended September 2025 were ¥10,033 million.
Business Model
Revenue consists of two formats: contract development (project-based) and engineer dispatch. The company secures stable sales by deeply engaging with clients' core systems from the upstream process stage and building continuous transaction relationships through maintenance and operations. In addition, in the Solutions business, the company aims to expand subscription-type (recurring) sales through cloud offerings, seeking to improve the quality of its revenue. Outsourcing costs are adjusted through commissioning to partner companies, and remote development leveraging the Nagasaki nearshore site achieves both productivity improvement and cost competitiveness.
Company Strengths
The company is involved end-to-end, from planning and consulting through maintenance and operation, in core systems for financial institutions such as insurance, banking, and credit card companies. It maintains engineers skilled in both mainframe and open systems, establishing a framework capable of addressing the legacy financial systems domain, where engineer shortages are severe. In FY2025 (ended September 2025), sales from Business System Development were ¥6,550 million (65.3% of total).
The Solutions line achieved ¥2,047 million in FY2025 (ended September 2025), up 32.7% year on year. AI Solutions expanded rapidly, up 38.3% year on year, and the company is broadening its proprietary product lineup, including generative AI Solutions (FSGen, QualiBot, etc.) developed through joint industry-academia research with Nagasaki University, and the abnormal sound detection AI "As Prophetter" developed in collaboration with Hmcomm Inc.
Leading indicators expanded in FY2025 (ended September 2025), with total orders received of ¥10,581 million (up 9.7% year on year) and order backlog of ¥3,122 million (up 21.3% year on year). Business alliances with RGS Corporation (in the third-party verification field) and the transition to a capital and business alliance with Hmcomm Inc. are driving order expansion and broadening of sales channels.
ENVALITH's Perspective
Performance Trend
Revenue increased 74% over four years, from ¥5,752 million in FY2021 to ¥10,033 million in FY2025, and the trend of revenue growth continued into H1 of FY2026 (ending March 2026)/interim period, with revenue of ¥5,206 million (up 3.4% year on year). Meanwhile, operating profit for the H1 interim period of FY2026 fell sharply to ¥609 million (down 17.1% year on year). The main cause was a 44.9% year-on-year increase in SG&A expenses resulting from the recording of ¥173 million in shareholder benefit program-related expenses, which began in the second half of the previous fiscal year. As an external factor, the domestic IT market has continued a stable expansion trend driven by the ongoing growth in demand for DX promotion, and gross profit itself improved, rising 6.9% year on year, indicating that underlying profitability is improving. The full-year forecast (operating profit of ¥1,380 million, up 19.4% year on year) remains unchanged.
Growth Strategy
Expansion of the three priority focus areas—AI, migration, and IT outsourcing—together with strengthening of the order-taking base through business alliances
Launched "AI Doctor Scheduling," a medical AI Solution utilizing generative AI developed through joint industry-academia research with Nagasaki University, from January 2026. The Solutions line as a whole grew steadily, up 3.9% year on year.
To capture demand related to end-of-support (EOS) issues for legacy systems, launched "MigrationLC," a new migration development Solution leveraging low-code technology, from April 2026. Contribution to order growth is expected to be reflected in second-half results going forward.
The software testing support service launched in November 2025 achieved high growth of 45.3% year on year. This contributed to the IT Infrastructure line's overall growth of 3.7% year on year, and the service is being cultivated as a new revenue pillar.
Management noted that results are steadily emerging from multiple business alliances and capital-business alliances, including obtaining ESPP certified partner status from Canon IT Solutions Inc. (February 2026). This has also contributed to strengthening security systems and service delivery capabilities.
Aiming to meet the Prime Market listing criterion of tradable share market capitalization of ¥10 billion or more, the company is promoting shareholder benefit programs, proactive IR activities, and briefings for institutional investors (scheduled for May 28, 2026), among other initiatives. The policy is to pursue both EPS growth and stronger shareholder returns concurrently.
Last updated: July 17, 2026