ENVALITH
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Money Forward, Inc.

3994・Prime Market・Information & Communication

Official website
株式会社マネーフォワード logo
Money Forward, Inc.3994

Business

Money Forward, Inc. operates under the Mission "Forward your money, forward your life," and runs its business across four segments: back-office SaaS for corporations and sole proprietors (Business Segment), personal PFM services (Home Segment), DX services for financial institutions (X Segment), and VC business (Finance Segment). Its core product, "Money Forward Cloud," covers a wide range of back-office areas including accounting, expense management, payroll, HR/labor management, legal affairs, and IT management, and is offered on a monthly/annual subscription basis to a broad customer base ranging from sole proprietors to mid-sized companies. Consolidated net sales for FY2025 (ending November 2025) reached ¥50,349 million (up 24.7% year on year), and SaaS ARR reached ¥39,333 million (up 31.1% year on year), with the company continuing to achieve high growth against the backdrop of the rapid expansion of the domestic SaaS market.

Business Model

Core revenue consists of monthly/annual subscription fees in the Business segment (SaaS ARR of ¥33,909 million) and premium subscription fees in the Home segment (ARR of ¥3,543 million). Because the churn rate is extremely low, revenue tends to grow incrementally on a stock basis as the number of new users increases. The price revision (implemented in June 2025) and ARPA improvement measures also contribute to revenue growth. Flow-type income, including implementation support fees, payment processing fees, and consulting revenue, is also recorded. Upfront investments (sales personnel costs and advertising expenses) are funded through internal cash and borrowings from financial institutions, with maximizing cash flow over the medium to long term set as a management goal.

Company Strengths

SaaS ARR expanded approximately 3.5x over four years, from ¥11,227 million at the end of FY2021 (ended November 2021) to ¥39,333 million at the end of FY2025 (ended November 2025). The year-on-year growth rate in FY2025 (ended November 2025) accelerated to 31.1%, with the Business segment's ARR increasing 34.0% to ¥33,909 million in particular. A step-up structure premised on a low churn rate enhances the stability and predictability of revenue.

Starting from accounting and tax filing, the company holds a broad product lineup spanning expense management, payroll, HR, legal affairs, IT management, consolidated accounting, and management systems (Sactona). The component-based rollout has driven adoption among mid-sized enterprises, and ARPA improvement has been achieved through multi-product usage. Business segment revenue in FY2025 (ended November 2025) was ¥36,087 million (up 33.4% year on year).

The establishment of a joint venture with Sumitomo Mitsui Card Company (Money Forward Home) is driving improvements in the value proposition and revenue diversification of the Home segment. A joint venture with Sumitomo Mitsui Banking Corporation, "SMBC Money Forward Bank Preparation Co., Ltd." (each party holding a 50% stake), has been established, beginning preparations for entry into the banking business. The company also operates Biz Forward, a joint venture with MUFG Bank, and its deep collaboration with megabanks forms a competitive advantage.

ENVALITH's Perspective

Adjusted EBITDA for the interim period of FY2026 (ending November 2026) came to ¥5,094 million (up 168.7% year on year), and operating cash flow turned positive at ¥5,051 million (versus a use of ¥1,848 million in the same period of the prior year), confirming in numerical terms a qualitative shift in the earnings structure. Interim net income attributable to owners of the parent also secured a profit of ¥553 million. That said, an operating loss of ¥209 million and an ordinary loss of ¥1,205 million continued, and it should be noted that extraordinary income (gain on sale of investment securities of ¥2,412 million) underpinned the bottom-line profit. As an external factor, the intensifying labor shortage is structurally boosting demand for SaaS.

The full-year forecast for FY2026 (ending November 2026) was revised upward to net sales of ¥60,500-62,300 million (up 20.2-23.7% year on year) and adjusted EBITDA of ¥10,500-11,500 million (up 111.6-131.7% year on year). The main reasons for the revision are the strong performance of the Fintech area within the Business Segment and the expected recording of net sales of operational investment securities in the Finance Segment in the third quarter. As a subsequent event, a gain on sale of ¥1,735 million (recorded as consolidated operating income) was finalized on June 23, 2026, but the portion attributable to owners of the parent is limited to approximately ¥179 million, which calls for analysis that clearly distinguishes core business earnings power from one-time gains on sale.

Goodwill at the end of the current interim period stood at ¥12,620 million (up ¥6,458 million from the end of the prior fiscal year), and long-term borrowings stood at ¥17,881 million (up ¥6,886 million from the end of the prior fiscal year), reflecting the continued expansion of assets and liabilities associated with business acquisitions and M&A. The equity ratio declined to 28.7% (from 32.0% at the end of the prior fiscal year). Cash flow from financing activities showed an inflow of ¥7,735 million, mainly due to long-term borrowings of ¥11,548 million, indicating that borrowing-dependent investment continues. Upfront investment expenses in the Business Segment remain at a high level, planned at ¥27,598 million for FY2026 (ending November 2026), and improving the CAC Payback Period and accelerating the accumulation of net increase in ARR will be key to the recovery of these investments.

Growth Strategy

Continued upfront investment in the Business Segment, combined with AI, M&A, and financial institution partnerships, to expand the business domain

Concentrating the FY2026 (ending November 2026) plan's upfront investment expenses of ¥27,598 million (including advertising expenses of ¥5,510 million) on the Business Segment. The effect of the June 2025 price revision and component-based rollout has advanced multi-product adoption among mid-sized companies, improving ARPA. Continuing to build up net increase in ARR while emphasizing improvement in CAC Payback Period.

Multiple AI agents responsible for AI tax filing and various business processes have already been released. In response to demand for autonomous back-office operations amid labor shortages, the company aims to elevate the value provided by SaaS from conventional digitization to business process autonomy, thereby differentiating from competitors and improving ARPA.

During the current interim period, the company acquired the attendance management system business and owned media business of Sony Biz Networks Corporation, as well as the accounting outsourcing business of Money Forward Partners, LLC (business transfer expenditure of ¥5,952 million). Goodwill increased by ¥6,458 million, expanding the customer base and product lineup. The consolidation of Michibiku Co., Ltd. also contributed to revenue growth.

To accelerate the optimization of capital allocation within the group, the Home Segment is deepening its collaboration with the SMBC Group (Olive), while the X Segment is promoting DX support for financial institutions through BANK Biz, Cashmap, and others. Both segments aim to continue growth while prioritizing profitability improvement.

Expanding the portfolio through the establishment of new funds such as HIRAC FUND No. 3. As a subsequent event, a gain on sale of operational investment securities of ¥1,735 million (recorded as consolidated operating income) was confirmed on June 23, 2026. Recognition of sales of operational investment securities is expected in the third quarter, serving as a factor for the upward revision of the full-year earnings forecast.

Last updated: July 17, 2026