Cacco Inc.

Business Details

Built on technology in security, payments, and data science, the business comprises three pillars: a fraud detection service centered on the "O-PLUX" brand, which integrates fraudulent order detection and fraudulent login detection for e-commerce; a payment consulting service for BNPL operators; and a data science service that performs corporate data analysis. The business operates a SaaS model centered on recurring revenue (monthly fees plus usage-based fees). In April 2026, the company acquired the ad fraud prevention service "X-log" business, expanding its offering into an end-to-end fraud prevention solution covering everything from the ad inflow stage through to the conversion stage.

Recent Overview

1Q net sales up 13.7%; operating loss narrowed year on year; acquired ad fraud business to expand fraud prevention offering

Net sales for the first quarter of FY2026 (ending December 2026) (January to March 2026) were ¥216 million (up 13.7% year on year), and operating loss was -¥23 million (improved from -¥33 million in the same period last year). Recurring revenue from the fraud detection service maintained high growth, up 22.3% year on year. Fraudulent order prevention and fraudulent login prevention have been integrated under the "O-PLUX" brand, establishing a consistent solution delivery framework. Effective April 1, 2026, the company acquired the ad fraud prevention service "X-log" business from Nippon Claudia Co., Ltd. for an acquisition cost of ¥25,850 thousand. In connection with this, the business alliance with Value Creation Co., Ltd. was terminated effective June 13, 2026 (no impact on business results). The full-year earnings forecast (net sales of ¥900 million; operating loss of -¥112 million) remains unchanged.

Key Products

Growth Drivers

• Credit Card Security Guidelines Version 6.1 mandates the introduction of EMV 3-D Secure and fraudulent login countermeasures for e-commerce merchants, stimulating demand for adoption
• The amended Installment Sales Act's mandatory requirement for measures to prevent fraudulent credit card use provides a societal tailwind
• Continued growth of the BtoC e-commerce market (up 5.1% year on year in 2024 to ¥26.1 trillion, with an e-commerce penetration rate of 9.78%)
• Integration under the O-PLUX brand strengthens integrated solution proposals by domain, such as e-commerce and financial services, accelerating new customer acquisition
• Acquisition of the "X-log" business establishes a framework for providing an end-to-end fraud prevention solution spanning from the ad inflow stage through to the conversion stage
• Promotion of system integration with e-commerce package and shopping cart operators reduces the implementation burden on customers and promotes new customer acquisition

Risks

• Operating losses and net losses are expected to continue for a fourth consecutive fiscal year (a full-year operating loss of -¥112 million is forecast for FY2026, ending December 2026), and uncertainty over the timing of profitability continues
• Risk of transaction discontinuation or reduced orders in the payment consulting service (a 43.9% year-on-year decline was experienced in FY2025, ended December 2025)
• Recognition of goodwill and acquisition-related costs (brokerage fees and other costs of ¥7,970 thousand) associated with the acquisition of the "X-log" business, and uncertainty over the realization of integration costs and business synergies
• Cash and deposits decreased by ¥88 million in 1Q alone, posing a risk of gradual depletion of available liquidity amid continued losses
• Continued need for investment in service development due to intensifying competition with domestic and overseas competing services
• Possibility of slowing e-commerce market growth due to external environmental risks such as conditions in the Middle East, overseas economic uncertainty, and fluctuations in financial and capital markets