TRADE WORKS Co., Ltd

Business Details

Provides package software and cloud services centered on internet trading systems for securities companies and financial information system operators. Operates on two pillars: spot business (contract development) and stock business (SaaS-type cloud maintenance). Major customers are DMM FinTech Co., Ltd. (revenue of ¥654 million, 12.9% of total) and Mitsubishi UFJ eSmart Securities Co., Ltd. (¥569 million, 11.3%). Also engages in digital financial advisory, Web3, and investment advisory services, supporting financial DX broadly.

Recent Overview

In FY2025 (ended December 2025), revenue grew 10% and the company achieved a turnaround to operating profit; also decided a capital and business alliance with Tokai Tokyo Financial Holdings

For FY2025 (ended December 2025), revenue was ¥5,052 million (up 10.0% year on year) and operating profit was ¥260 million (versus an operating loss of ¥55 million in the prior period), achieving a turnaround to profitability. Expansion of the securities system business along with improved project management precision and cost structure improvements contributed, resulting in a significant improvement in gross profit to ¥1,246 million (from ¥786 million in the prior period). Acquired a digital financial advisory subsidiary in April 2025 and a Web3 wallet subsidiary in June 2025 (absorbed via merger in September). As a subsequent event, in March 2026 the company conducted a third-party allotment capital increase (¥858 million) with Tokai Tokyo Financial Holdings as the allottee, and entered into a capital and business alliance. For FY2026 (ending December 2026), the company forecasts revenue of ¥5,700 million and operating profit of ¥480 million.

Key Products

Growth Drivers

• Continued expansion of demand for advanced system infrastructure amid the ongoing digitalization and move toward 24/7/365 operation in the securities industry
• Accumulation of recurring (stock) revenue through expansion of the flagship product's SaaS-type cloud services
• Improvement in gross margin and operating margin through improved project management precision and cost structure improvements
• Expanded access to new customer bases and joint development of next-generation financial systems through the capital and business alliance with Tokai Tokyo Financial Holdings
• Strengthening of group technological capabilities and expansion of financial-related peripheral businesses through acquisition of subsidiaries in the digital financial advisory and Web3 domains
• Enhanced development and operational sophistication and improved value-added productivity through use of generative AI and automation technologies
• Building a global expansion foundation in the securities IT field through overseas business alliances

Risks

• Customer concentration risk due to revenue dependence on specific customers (DMM FinTech 12.9%, Mitsubishi UFJ eSmart Securities 11.3%)
• Risk that extraordinary losses such as valuation losses on investment securities (¥70 million in FY2025, ended December 2025) will pressure net profit
• Risk that new subsidiaries (digital financial advisory and Web3) are in the early stages of business development and may take time to become profitable
• Impairment risk related to goodwill (period-end balance of ¥306 million) (a goodwill impairment loss of ¥14 million was already recorded in FY2025, ended December 2025)
• Risk of deteriorating economic conditions due to geopolitical risk, foreign exchange fluctuations, and global monetary tightening
• Risk of transformation in customer business models associated with structural changes in the securities industry, such as the move to zero commissions on Japanese equity trades
• Risk of investor concern regarding the reliability of accounting treatment, as this financial results report is subject to a prior-period correction (correction dated June 1, 2026)