Brains Technology,Inc.

Business Details

With the mission of "contributing to the continuity of corporate activities and dramatic improvements in productivity," the company operates its Enterprise AI Software Business centered on two products: the anomaly detection solution "Impulse" and the enterprise search engine "Neuron Enterprise Search." Customers are concentrated in manufacturing, information and communications, and electricity/gas/water industries, with large enterprises accounting for nearly half of revenue. The company aims for stock-type revenue through subscriptions, licenses, and maintenance licenses, and continuously works to raise brand awareness through exhibitions, business partnerships with other companies, and technical information dissemination.

Recent Overview

Cumulative Q3 revenue of ¥990 million and operating profit of ¥132 million, both increasing year-on-year

In the cumulative nine months of Q3 FY2026 (ending March 2026) (August 2025 to April 2026), the company recorded revenue of ¥990 million (up 5.1% year-on-year), gross profit of ¥617 million (up 11.1%), operating profit of ¥132 million (up 8.4%), and quarterly net profit of ¥93 million (up 11.0%). Cost of sales decreased from ¥386 million in the same period of the prior year to ¥373 million, improving the gross margin, while SG&A expenses increased from ¥434 million to ¥485 million. The company continued initiatives to raise awareness of Impulse and Neuron ES through exhibitions, business partnerships, and technical information dissemination. There is no change to the full-year earnings forecast (revenue of ¥1,510 million and operating profit of ¥224 million).

Key Products

Growth Drivers

• Expansion of new revenue through partner approaches to the automotive industry
• Acquisition of new business opportunities and upselling to existing customers through initiatives such as user group meetings
• Increase in the proportion of stock-type revenue through accumulation of software licenses
• Raising awareness and creating new customers for Impulse and Neuron ES through exhibitions, business partnerships, and technical information dissemination
• Expansion into the social issue resolution domain through participation in the Infrastructure Facility Management AI Council and similar initiatives
• Development of new services for the manufacturing industry through the release of Impulse AI Agent Professional Services
• Continued capital strengthening through the exercise of stock acquisition rights and continued aggressive investment in personnel and service development

Risks

• Risk of declining competitiveness due to delayed response to the rapid evolution of AI-related technologies
• Risk of disadvantage in intellectual property competition with major domestic and international IT companies
• Constraints on development and sales organization due to increasing difficulty in securing and developing talented personnel
• Concentration of revenue in specific customers/industries (manufacturing, information and communications, and electricity/gas/water industries account for the majority)
• Risk of customers curbing DX investment due to macroeconomic uncertainty such as price increases and U.S. tariff policy
• Risk of leakage of confidential information and personal information due to inadequate information management systems
• Risk of profit margin pressure due to the divergence between the continued increase in SG&A expenses (up 11.8% year-on-year) and revenue growth rate (5.1%)