ENVALITH
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G-NEXT Inc.

4179・Growth Market・Information & Communication

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G-NEXT Inc.4179

Business

G-NEXT Co., Ltd. is a company listed on the TSE Growth Market whose mission is "to create revolutionary ease in business operations." The company independently develops and provides "Discoveriez," a Stakeholder DX Platform that digitalizes and streamlines corporate customer engagement operations. It centrally manages customer engagement information across multiple channels—phone, email, chat, and physical stores—and supports the discovery of management issues and operational efficiency through the visualization and knowledge conversion of VOC (Voice of Customer). Its main customers are companies of various industries and sizes, whether BtoB or BtoC, that maintain customer engagement contact points. In FY2026 (ending March 2026), the company achieved revenue exceeding ¥1,015 million for the first time since its founding, and has expanded into a three-business structure: Software Business (¥430 million), Solution Business (¥265 million), and Hardware Business (¥319 million).

Business Model

The core of revenue is a stock-type model based on initial implementation fees and monthly license fees for the cloud-based "Discoveriez". Stock revenue was ¥465 million (45.8% of sales), with cloud MRR growth of 16.0% year-on-year. In addition, a three-layer structure complements this with flow-type revenue: a Solutions business handling BPO, consulting, and contract development, and a Hardware business covering procurement of AI data center-related equipment, etc. The company's basic approach is indirect sales through partners, aiming to raise customer unit prices through upselling and cross-selling.

Company Strengths

The average monthly churn rate over the past 12 months stood at 0.74%, achieving and maintaining the internal KPI target (below 0.8%). Despite the ongoing replacement of the former service "CRMotion" with Discoveriez, the company has kept the churn rate at a low level, demonstrating a high degree of customer operational embeddedness. This serves as the foundation supporting the stable accumulation of recurring revenue of ¥465 million.

Discoveriez employs a no-code/low-code design that requires no programming, allowing customers to customize their own original input screens without specialized knowledge. Industry-specific templates are provided to support rapid operational launch. This low implementation barrier enables deployment across a wide range of industries and company sizes, and combined with a flexible pricing structure that allows optional features to be added later, it promotes customer acquisition.

Since 2017, the company has entered into a lab-type software development outsourcing agreement with VNEXT Software Joint Stock Company in Hanoi, Vietnam, and continues to utilize this overseas development base. While internalizing upstream processes such as detailed design and requirements definition, the company outsources development and testing processes, thereby securing development resources while controlling costs. Research and development expenses for FY2026 (ending March 2026) amounted to ¥60 million (in thousand-yen units: ¥60,438 thousand).

ENVALITH's Perspective

The operating loss for FY2026 (ending March 2026) was ¥70 million, a significant reduction from the previous fiscal year (¥174 million). In Q4 alone, the company posted an operating profit of ¥17 million, achieving a quarterly operating profit for the first time in five years. Net sales also increased by approximately 47% year-on-year to ¥1,015 million, driven by both the hardware and solutions businesses within the SRM Design Lab business. The effects of profitability improvement measures are beginning to show in the numbers, and the path toward a full-year turnaround to profitability in FY2027 (ending March 2027) (projected operating profit of ¥30–40 million) has become more concrete than before.

The company has recorded operating losses for five consecutive fiscal periods since FY2022 (ending March 2022), and in FY2026 (ending March 2026) as well, operating cash flow was negative ¥163 million, with cash outflows continuing. The cash balance at fiscal year-end declined to ¥183 million (down ¥231 million from ¥414 million at the start of the period). The balance of long-term borrowings stood at ¥103 million (current and non-current combined), indicating limited financial flexibility. A note regarding material uncertainty related to going concern is disclosed in the financial statements, and whether the company can achieve a turnaround to profitability and improve operating cash flow in FY2027 (ending March 2027) will be the key point of focus.

In FY2026 (ending March 2026), hardware business sales expanded to ¥320 million, accounting for approximately 31% of total company sales. However, hardware sales generally carry lower gross margins, which could be a factor depressing the gross profit margin (38%). While external tailwinds exist, such as demand from AI data centers and the expanding GPU server market, continued scrutiny is needed regarding the continuity, profitability, and competitive environment of individual projects. Along with the improvement in the recurring revenue ratio to 45.8%, confirming a qualitative improvement in the revenue structure will be key to investment decisions.

Growth Strategy

Transforming the earnings structure through four pillars: cloud shift, AI feature enhancement, SRM Design Lab expansion, and new business M&A

Aiming for a 20% CAGR in net sales by promoting the replacement of legacy services (CRMotion, BizVoice) with Discoveriez, pursuing upsell initiatives (Discoveriez AI, license expansion, option adoption), and negotiating price increases. In FY2026 (ending March 2026), cloud MRR growth reached 16.0% year-on-year and the monthly churn rate was 0.74%, demonstrating the effect of these initiatives numerically.

Concentrating management resources to achieve a net sales CAGR of over 70% as a growth business. In addition to hardware sales, the company has entered the reuse and circular economy space. In FY2026 (ending March 2026), hardware sales reached ¥320 million and solutions sales reached ¥265 million, together accounting for approximately 57% of consolidated net sales.

Expanding the availability of Discoveriez AI, which leverages generative AI, as an optional feature and accelerating its adoption. The company aims to increase ARPU among existing customers and acquire new customers by improving efficiency in customer engagement operations and supporting VOC (voice of customer) utilization. This has also contributed to increased orders for core system and generative AI-related outsourced development projects, supporting the expansion of solutions business sales in FY2026 (ending March 2026).

Promoting new business development leveraging generative AI, including an AI data center business and GPU server sales, as well as M&A and acqui-hiring. The company has already established its subsidiary VoX Technology and executed a capital and business alliance with R Device. It plans to strengthen communication with investors and financial institutions to establish a framework for meeting funding needs associated with expanding business investment.

Flexibly promoting cost reduction initiatives such as consolidating outsourcing partners and reviewing middleware. The operating profit forecast for FY2027 (ending March 2026) is ¥30–40 million (range-based), anticipating a return to profitability. In the fourth quarter of FY2026 (ending March 2026), the company achieved its first quarterly operating profit in five years, showing that the effects of these measures are gradually materializing.

Last updated: July 19, 2026