rakumo Inc.

Business Details

rakumo Inc. Group centers its business on the enterprise groupware "rakumo", and also offers the SNS-style internal daily-report app "gamba!", HR management and recruitment support tool "aloop", IR video distribution service "SmartVision IR", website CMS "STARTRE CMS", and the recruitment agency alliance platform "AGENT SHARE". It provides SaaS products integrated with Google Workspace, Salesforce, and Microsoft 365 on a subscription basis, achieving both the stability and growth potential of stock-type (recurring) revenue. Because the company operates a single segment, consolidated results are equivalent to segment results.

Recent Overview

In Q1 FY2026 (ending December 2026), net sales rose 35.5% year on year, but higher expenses caused net income to decline 5.6% year on year

Net sales for Q1 FY2026 (ending December 2026) (January to March 2026) reached ¥535 million, a substantial increase of 35.5% year on year. Adjusted EBITA rose 22.3% year on year to ¥171 million, and operating profit increased 10.1% year on year to ¥120 million, securing profit growth. On the other hand, non-operating expenses increased sharply from ¥1,790 thousand in the same period of the prior year to ¥8,046 thousand (including interest expense of ¥2,363 thousand and losses on investment partnerships of ¥1,899 thousand), and income taxes increased from ¥37,520 thousand to ¥48,092 thousand year on year. As a result, quarterly profit attributable to owners of parent came to ¥67 million, down 5.6% year on year. Amortization of goodwill increased substantially from ¥9,129 thousand in the same period of the prior year to ¥40,957 thousand, highlighting the emerging cost burden accompanying the expansion of M&A activity. The full-year earnings forecast (net sales of ¥2,330 million, operating profit of ¥550 million) remains unchanged, with Q1 progress rates of 22.9% for net sales and 21.9% for operating profit.

Key Products

Growth Drivers

• Continuation of the effect of raising the per-unit SaaS sales price through the rakumo product price revision (implemented in October 2025)
• Acquisition of new customers through industry-segment-focused marketing (local governments, healthcare, construction, education, etc.)
• Expansion of other service sales through the consolidation of STARTRE Inc. and Agent Share Inc.
• Market expansion through the launch of the new series "rakumo for Microsoft 365" targeting the Microsoft 365 market
• Enhanced product appeal through the use of generative AI, such as the AI assistant feature "rakumo Agent"
• Expansion of cross-selling opportunities through business alliances with Pasona Inc. and AvePoint Japan Co., Ltd.

Risks

• Downward pressure on operating margin due to a sharp increase in goodwill amortization expense accompanying M&A expansion (Q1 goodwill amortization of ¥40,957 thousand, approximately 4.5 times year on year)
• Risk of breaching financial covenants and increased interest expense burden due to increased borrowings (long-term borrowings of ¥577 million and convertible bond-type bonds with subscription rights to shares of ¥500 million)
• Dependency risk on specification changes to the Google Workspace, Microsoft 365, and Salesforce platforms
• Sales channel concentration risk, with the top three companies—SoftBank, Densan System, and USEN Smart Works—accounting for approximately 39% of net sales
• Risk of delayed synergy creation at subsidiaries due to delays in post-merger integration (PMI) following M&A
• Risk of rising costs, such as server expenses, due to the continued depreciation of the yen
• Risk of pressure on net income due to increased non-operating expenses (such as losses on investment partnership operations)