ENVALITH
株式会社PKSHA Technology logo

PKSHA Technology Inc.

3993・Prime Market・Information & Communication

Official website
株式会社PKSHA Technology logo
PKSHA Technology Inc.3993

Business

PKSHA Technology Inc. operates under the mission of "giving shape to the software of the future," engaging in research and development through to social implementation of algorithms using natural language processing, image recognition, and machine learning/deep learning technologies. The business consists of two segments: the AI Research & Solution Business and the AI SaaS Business. The former centers on joint research and development and custom solution provision for partner companies, while the latter centers on sales of general-purpose SaaS products such as PKSHA ChatAgent, PKSHA VoiceAgent, and PKSHA FAQ. Its main customers are leading companies across a wide range of industries including finance, distribution, and manufacturing, and the company is capturing corporate demand for business automation and sophistication amid worsening labor shortages. Founded in 2012 as a startup originating from the University of Tokyo, it changed its listing market to the Tokyo Stock Exchange Prime Market in September 2024.

Business Model

Revenue consists of two pillars: initial fees received at the time of initial setup of algorithm software, and license fees received on a monthly basis. Due to the characteristics of the SaaS model, the AI SaaS Business has a low churn rate, and revenue increases in a stock-type manner as new users grow. In the AI Research & Solution Business, algorithm modules are incorporated into customer operations following custom development, generating ongoing license revenue. A virtuous cycle in which algorithm accuracy improves with increased usage supports high continuous usage rates, enhancing the stability of revenue.

Company Strengths

Machine learning algorithms have the characteristic of receiving data feedback and improving accuracy the more they are used by users. This virtuous cycle generates high continuous usage rates, maintaining churn rates at low levels compared to general software. The AI SaaS Business segment profit margin reached 34.5% for the full fiscal year ended September 2025 (revenue of ¥9,050 million, segment profit of ¥3,125 million).

The company develops highly accurate algorithms through business partnerships with leading companies that possess industry-leading scale training data. It has established a unique R&D cycle where the results of this work are generalized into modules and deployed as SaaS products. Academic specialist personnel, including former assistant professors at the University of Tokyo and Tohoku University, lead the research and development.

Revenue expanded approximately 2.5-fold, from ¥8,727 million in FY2021 (ending March 2021) to ¥21,771 million in FY2025 (ending March 2025). Operating profit grew approximately 7.4-fold over the same period, from ¥714 million to ¥5,289 million, with the operating profit margin significantly improving from 8.2% to 24.3%. Operating cash flow in FY2025 (ending March 2025) increased 71.7% year on year to ¥5,177 million, indicating improved quality of earnings as well.

ENVALITH's Perspective

Revenue for the first half of FY2026 (ending March 2026) reached ¥18,713 million (up 85.8% year on year), marking a significant increase, while profit attributable to owners of the parent for the interim period declined to ¥1,866 million (down 11.2% year on year). However, the prior-year interim period included one-time gains from the sale of shares in Sapeet, Inc. and the revaluation gain on retained equity interest; excluding these, on a substantive basis, profit before tax increased 58.1% and profit attributable to owners of the parent increased 61.9%, both substantial gains. On a business profit basis, profit reached ¥3,401 million (up 58.5% year on year), confirming steady improvement, and this continued structural strengthening of earning power should be positively evaluated.

The full-year forecast for FY2026 (ending March 2026) remains unchanged at revenue of ¥35,000 million (up 60.8% year on year), business profit of ¥5,000 million (up 29.0% year on year), and profit attributable to owners of the parent of ¥2,850 million (up 7.3% year on year). The interim revenue progress rate of approximately 53% is broadly on track, but the business profit progress rate of approximately 68% is notably high, warranting close attention to the risk of margin decline in the second half due to expanded upfront investment and seasonality. There has been no revision to the earnings forecast, and management has expressed confidence in achieving the full-year targets.

The goodwill balance as of the end of March 2026 stood at ¥13,505 million (up ¥877 million from the end of the previous fiscal year), continuing an upward trend. Cash flow from financing activities was significantly negative at ¥-4,980 million, with substantial repayment of current borrowings (¥-6,047 million) and an increase in non-current borrowings (+¥2,726 million), indicating a shift toward longer-term debt. Cash and cash equivalents remain ample at ¥15,830 million, but the risk of goodwill impairment associated with the continuation of the M&A strategy, as well as changes in leverage levels, warrant continued close monitoring.

Growth Strategy

Pursuing a three-pronged approach combining synergies across the three business segments, group expansion through M&A, and expansion into generative AI application areas

The spread of generative AI and large language models has expanded the range of applicability for natural language processing technology. Solution projects from partner companies continue to increase, and revenue for the first half of FY2026 (ending March 2026) reached ¥6,564 million (up 31.0% year on year), while segment profit reached ¥1,886 million (up 59.7% year on year), maintaining high growth.

Promoting the accumulation of new orders and license stock for AI SaaS, centered on the automated response engine. Expanding the customer base through mutual customer referrals across consolidated subsidiaries and business segments. Revenue for the first half of FY2026 (ending March 2026) reached ¥5,614 million (up 32.4% year on year), while segment profit reached ¥1,856 million (up 21.7% year on year), continuing stable growth.

Circulation, which became a subsidiary in the previous consolidated fiscal year, has been fully consolidated as the AI Powered Worker Business. While developing and strengthening a professional talent empowerment platform utilizing AI agents, the company has been accumulating the number of projects. Revenue for the first half of FY2026 (ending March 2026) reached ¥6,702 million (up 638.0% year on year), while segment profit reached ¥537 million (up 349.5% year on year), achieving rapid growth.

Promoting the mutual utilization of technology, customers, and know-how across the three businesses of AI Research & Solution, AI SaaS, and AI Powered Worker. Through strengthened cross-business collaboration and the promotion of forward-looking proposals to customers, the company aims to create customer value and achieve revenue growth that would be difficult to realize through any single business alone. Starting from the current interim period, the segment classification has been redefined into three categories, and the internal management structure has also been organized accordingly.

Last updated: July 17, 2026