ENVALITH
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TRADE WORKS Co., Ltd

3997・Standard Market・Information & Communication

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株式会社トレードワークス logo
TRADE WORKS Co., Ltd3997

Business

TradeWorks Inc. is a securities and financial industry-focused IT solutions company founded in 1999. Centered on its flagship product Trade Agent, the company provides a multi-asset trading platform that supports a wide range of financial products including equities, FX, CFD, crypto assets, digital securities, NFTs, and DeFi. Its customers are mainly domestic securities firms and financial information systems service providers, and it operates a business that combines SaaS-type cloud services (recurring revenue model) with contract development and package sales (flow-type revenue model). The company also engages in security services, Web3-related solutions, and investment advisory services, providing comprehensive support for financial DX across the group as a whole. Listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

The company builds recurring revenue by continuously providing trading platforms, led by its flagship product "Trade Agent," to securities firms and other financial institutions as a SaaS-based cloud service, while also securing flow revenue from new system development and package sales. Cost of sales is primarily composed of labor costs (equivalent to ¥1,396,911 million) and outsourcing processing costs (equivalent to ¥2,278,982 million), with improvements in project management precision and cost structure serving as key drivers for profitability improvement.

Company Strengths

Since its founding in 1999, the company has specialized in developing front-end systems for securities firms, with an extensive track record of deployments centered on U.S. equity trading systems at domestic securities companies. It has been certified as an Independent Software Vendor by the Tokyo Stock Exchange, the Osaka Securities Exchange, and the Tokyo Commodity Exchange, reflecting high credibility and expertise within the industry.

In March 2025, the company conducted a third-party allotment of shares (total paid-in amount ¥539,448 thousand) to SBI Holdings, Matsui Securities, and Iwai Cosmo Securities, and concluded a capital and business alliance with them. Furthermore, in February 2026, it also entered into a capital and business alliance with Tokai Tokyo Financial Holdings, securing access to a major comprehensive securities group.

In 2024, the company obtained ISO/IEC 27017 cloud security certification and began providing “SpotPath,” a multi-factor authentication platform for securities firms. It made Minkabu Web3 Wallet, a company with Web3 wallet technology, a subsidiary before absorbing it through merger, and is deploying “toku-chain,” an NFT and blockchain platform. The company is also advancing proof-of-concept trials for financial business support solutions leveraging generative AI.

ENVALITH's Perspective

In FY2025 (December 2025), the company achieved net sales of ¥5,052 million (up 10.0% year on year) and operating profit of ¥260 million, marking a turnaround to profitability. However, it recorded extraordinary losses totaling ¥95 million, comprising a valuation loss on investment securities of ¥70 million, goodwill impairment loss of ¥14 million, and damages paid of ¥11 million. As a result, profit before income taxes was limited to ¥164 million, and after deducting income taxes of ¥107 million, profit attributable to owners of parent was a thin ¥57 million. To achieve the FY2026 (ending December 2026) forecast of operating profit of ¥480 million (up 85% year on year), it will be essential to curb extraordinary losses and further improve the gross profit margin, making the degree of certainty of achievement an important point to monitor.

In FY2025 (December 2025), the company made active investments, including the acquisition of two subsidiaries (total acquisition consideration of ¥137 million), acquisition of investment securities of ¥272 million, and acquisition of intangible fixed assets of ¥452 million. Cash flow from investing activities resulted in an outflow of ¥906 million, which was offset by cash flow from financing activities (inflow of ¥762 million). The goodwill balance has grown to ¥306 million (up ¥24 million year on year), warranting attention to future impairment risk. The capital and business alliance with Tokai Tokyo Financial Holdings (raising ¥858 million) contributes to strengthening the financial base, but also entails a dilutive effect.

In terms of market environment, the shift toward 24/7 operations in the securities industry, strengthened regulatory response, and DX promotion are driving continued expansion in demand for system infrastructure, providing a favorable business environment for the company. On the other hand, the high outsourcing dependence structure, with cost of sales of ¥3,807 million (75.3% of net sales), constrains margin improvement. Additionally, sales concentration in two major customers (the top two customers accounted for approximately 24% of net sales in FY2025 (December 2025)) carries the risk of performance fluctuation due to changes in customer trends, making progress in customer diversification a key point for medium- to long-term evaluation.

Growth Strategy

Building revenue strength around a securities IT platform through major securities partnerships, AI utilization, and overseas expansion

In February 2026, the company entered into a capital and business alliance with Tokai Tokyo Financial Holdings, raising ¥858 million. The company is advancing collaboration in next-generation financial product development, securities business DX, AI utilization, and financial digital talent development, aiming to expand access to a new customer base and jointly develop next-generation systems.

The company is focusing on expanding SaaS-type cloud services for the securities industry, building a stable stock-type revenue base. Deferred revenue balance is trending upward at ¥126 million (up ¥11 million year-on-year), aiming to stabilize performance through the accumulation of recurring subscription-based revenue.

Through Trade Advisory Technologies (investment advisory and digital financial advisory), acquired in April 2025, the company offers real-time trading opportunity services for FX, crypto assets, equities, and investment trusts. The technological assets of Minkabu Web3 Wallet were internalized through an absorption-type merger, strengthening the Web3 business foundation.

In addition to development standardization, operational sophistication, enhanced quality control, and streamlined testing processes, the company is utilizing generative AI and other automation technologies to build a system capable of delivering value with shorter lead times while maintaining quality and stability. Improvement in gross profit margin and operating profit margin is positioned as a key management indicator.

The company is advancing gradual overseas business expansion through business alliances, working to build a foundation for globally deploying the group's expertise in the securities IT field. The company aims to monetize results toward the final year of the current medium-term management plan (FY2022–2026).

Last updated: July 17, 2026