Stmn, Inc.

Business Details

A BtoB, SaaS, subscription-based business centered on the engagement platform "TUNAG". Provides a one-stop solution through three steps: engagement surveys, dedicated customer success support, and a cloud-based system for operating internal corporate programs. Primarily targets industries with large numbers of non-desk workers, such as manufacturing, logistics, retail, and nursing care, and continues to achieve high growth in both the number of client companies and MRR, driven by expanding demand for human capital management and DX.

Recent Overview

Q1 FY2026 (ending December 2026) saw a substantial increase in both sales (up 40.8%) and operating profit (up 122.8%)

In the first quarter of FY2026 (ending December 2026) (January to March), consolidated net sales reached ¥1,143 million (up 40.8% year on year) and operating profit reached ¥105 million (up 122.8% year on year). The number of TUNAG client companies grew steadily to 1,404 as of end-March 2026 (up 288 companies year on year), with average MRR rising to ¥202 thousand (up ¥3 thousand year on year). This was driven by strengthened web marketing, use of online sales meetings, exhibition participation, and expanded sales channels through partnerships with financial institutions and partner companies. There has been no change to the full-year earnings forecast (net sales of ¥5,155 million, operating profit of ¥400 million), and progress remains on track.

Key Products

Growth Drivers

• Expanding demand from companies for resolving organizational issues and promoting DX amid growing interest in human capital management
• Rapidly expanding demand for organizational DX in non-desk worker industries such as manufacturing, logistics, retail, and nursing care
• Expanded outreach to potential customers through strengthened web marketing and use of online sales meetings
• Expanded sales channels and business matching through exhibition participation and collaboration with financial institutions and partner companies
• Maintaining high retention rates and improving average MRR through upselling driven by strengthened customer success activities (such as hosting online events for client companies)
• Expansion of a stable revenue base through the accumulation of subscription-based recurring revenue

Risks

• Intensifying competition for customer acquisition due to the emergence of competing HR tech services
• Risk of pressure on profit margins from increased upfront investment in advertising and personnel expenses
• Changes in the trend of the recurring revenue ratio (85.7% in FY2025, ending December 2025)
• Temporary impact of increased accounts receivable and deteriorating operating cash flow due to a change in TUNAG's collection terms (shift to collection by the end of the following month)
• Information security risks related to the management of client companies' personal information and internal behavioral data
• Rising recruitment difficulty and talent acquisition costs due to the declining working-age population