Brains Technology,Inc.
4075・Growth Market・Information & Communication
Business
Brains Technology is an enterprise AI software specialist founded in 2008. Under its mission of "contributing to the continuity of corporate activities and dramatic improvements in productivity," the company develops its business around two core products: the anomaly detection solution "Impulse" and the enterprise search engine "Neuron Enterprise Search." Its main customers are in the manufacturing, information and communications, and electricity/gas/water industries, with large enterprises accounting for nearly half of sales. The company listed on the Tokyo Stock Exchange Mothers market (now Growth Market) in 2021. It achieved the No. 1 share in the domestic predictive detection solution market (analysis service segment) in fiscal 2023, demonstrating its presence in the manufacturing DX space.
Business Model
Revenue consists of software sales (usage fees, license fees, maintenance license fees) and work sales (implementation support, training). In FY2025 (ended July 2025), the software sales ratio was 66%, of which the recurring revenue (stock sales) ratio was 37%. The number of licenses sold reached 584 at the end of FY2025 (ended July 2025), representing a 4-year CAGR of 16% from FY2022 (ended July 2022). As a software business requiring no procurement of goods, the company has a structure in which revenue stability increases as licenses accumulate.
Company Strengths
In the Deloitte Tohmatsu MIC Economic Research Institute survey (FY2023 edition), the company achieved the No.1 share in the analytics service segment of the domestic predictive detection solutions market. Its differentiating factor is the AutoML feature (Patent No. 6315528), which enables programming-free automatic construction of anomaly detection models; since going live in 2016, customers have achieved full operational autonomy.
The number of licenses sold reached 584 as of the end of FY2025 (ending July 2025), with a 4-year CAGR of 16% from FY2022 (ending July 2022), showing steady expansion. The recurring revenue ratio reached 37% (FY2025, ending July 2025), forming an increasingly stable revenue base. The non-labor-intensive revenue structure contributes to stable profit margins.
The company has obtained AWS Advanced Technology Partner certification (2018) and AWS Manufacturing and Industrial Competency certification (2023). In 2018, it was selected as one of only four companies worldwide in Gartner's "Cool Vendors in Performance Analysis, AIOps Focus, 2018," earning international recognition for its technological capabilities.
ENVALITH's Perspective
Performance Trend
After a temporary downturn in FY2024 (ending July 2024) (net sales of ¥1,005 million, operating profit of ¥73 million), the company achieved a V-shaped recovery in FY2025 (ending July 2025) (net sales of ¥1,256 million, operating profit of ¥166 million). In the nine months of FY2026 (ending July 2026) through the third quarter, net sales were ¥990 million (up 5.1% year on year) and operating profit was ¥132 million (up 8.4% year on year); although the growth rate has decelerated, both gross margin at 62.3% and operating margin at 13.3% exceeded the same period of the prior year, indicating an improving trend in profitability. Cash and deposits stood at ¥1,601 million, up ¥119 million from the end of the previous fiscal year, and cash-generating capability has also been maintained. The external factor of an expanding enterprise AI market is functioning as a tailwind, but the impact of changes in the competitive environment on the growth rate warrants continued attention.
Growth Strategy
Accelerating growth through three axes: license accumulation, expansion into new industries, and new generative AI services
During the cumulative third quarter, the company exhibited Impulse and Neuron ES products at trade shows and continued to raise awareness through business partnerships with other companies and technical information dissemination. The results of new customer creation contributed to a 5.1% year-on-year increase in net sales.
The accumulation of contract liabilities (¥203 million current, ¥76 million fixed) has improved the visibility of future revenue. The improvement in gross profit margin to 62.3% (59.0% in the same period of the previous year) reflects the effect of expanding recurring-type revenue, and the stabilization of the revenue structure is progressing.
The company is promoting partner-based approaches to the automotive industry, aiming to acquire new customers in the manufacturing sector. With the release of Impulse AI Agent Professional Services, the company is also advancing the rollout of new services for the manufacturing industry.
Through participation in the Infrastructure Facility Management AI Council, the company is promoting the expansion of applications into infrastructure fields outside of manufacturing. By developing new customer segments, the company aims to diversify net sales and accelerate growth.
Selling, general and administrative expenses expanded 11.8% year on year to ¥485 million, as the company actively promotes service development and personnel strengthening. Capital increases through the exercise of stock acquisition rights are also continuing, securing the financial basis for growth investment.
Last updated: July 17, 2026