Toyokumo, Inc.

Business Details

Toyokumo, Inc. Group operates as a single-segment company developing and selling cloud services for businesses, under the mission of "freeing everyone from inefficient work." Its core services are built around three pillars: Anpi Confirmation Service, kintone Integration Services, and NotePM, adopting a stock-type revenue model based on the accumulation of paid contracts. The company operates through two sales channels—direct sales and reseller (indirect) sales—with SB C&S Corporation (12.0% of net sales) and Daiwabo Information System Co., Ltd. (10.8% of net sales) as major sales partners.

Recent Overview

In Q1 of FY2026 (ending December 2026), net sales grew 29% and operating income grew 81%, achieving substantial growth

For the first quarter of FY2026 (ending December 2026) (January–March 2026), net sales were ¥1,389 million (up 29.0% year on year), operating income was ¥600 million (up 80.5% year on year), and EBITDA was ¥665 million (up 70.0% year on year), achieving substantial growth in both revenue and profit across all metrics. The operating margin improved significantly to 43.2%, up from 30.8% in the same quarter of the prior year. SG&A expenses were ¥723 million (versus ¥700 million in the same quarter of the prior year), with cost growth kept in check relative to revenue growth, reflecting operating leverage. Based on a resolution of the Board of Directors on February 13, 2026, the company acquired 60,700 shares of treasury stock (¥110 million). The full-year earnings forecast (net sales of ¥5,800 million, operating income of ¥1,900 million) remains unchanged. The progress rate for Q1 was 23.9% for net sales and 31.6% for operating income, indicating a solid start particularly on the profit side.

Key Products

Growth Drivers

• Continued expansion of paid contracts (Anpi Confirmation Service: 4,753 contracts; kintone Integration Services and others: 14,946 contracts), building up stock-type revenue
• Expansion of business scale through the new consolidation of Project Mode Inc. (recording goodwill of ¥844 million and customer-related assets of ¥295 million)
• Launch of NotePM's reseller (indirect sales) channel (February 2025) and increased brand awareness and new customer acquisition through mass advertising investment
• Strengthened cross-selling, up-selling, and enterprise (municipalities and large corporations) support for kintone Integration Services
• Continued expansion of the domestic cloud services market driven by DX promotion, the spread of generative AI, and the entrenchment of remote work (the domestic private-sector corporate IT investment market is projected to expand from FY2024 through FY2027)

Risks

• Risk of erosion of the existing customer base due to a rising churn rate trend (0.83% at the end of December 2025, versus 0.71% in the prior period)
• Risk of price competition and rising customer acquisition costs due to new entrants and intensifying competition in the cloud services market
• Risk of sales channel concentration in SB C&S Corporation (12.0% of net sales) and Daiwabo Information System Co., Ltd. (10.8% of net sales)
• Risk of goodwill impairment associated with M&A and new business investments (goodwill balance of ¥844 million)
• Risk of declining profit margins due to rising personnel expenses associated with talent acquisition and wage-level improvements