TENDA CO., Ltd.
4198・Standard Market・Information & Communication
Business
Tenda Corporation was established in 1995 and is a group of IT service companies (7 companies) listed on the TSE Standard Market. Its core DX Solutions Business supports corporate DX promotion through Web system development, maintenance, and engineer support, accounting for approximately 65% of net sales. The Techwise Consulting Business offers Microsoft product utilization consulting and its proprietary product, the "Dojo Series" (cumulatively adopted by over 3,000 companies). The Game Content Business participates in the roughly ¥5 trillion domestic game market through two pillars: contract development and in-house IP. More than 70% of employees are engineers, and the company's business is fundamentally centered on providing "work style transformation solutions" built on technical capabilities.
Business Model
In the DX Solutions Business, the company secures stable recurring revenue by providing a bundled set of contract development, lab-type development (Tenda Lab), and maintenance/operations. In the Techwise Consulting Business, subscription-based sales of the Dojo Series (targeting a SaaS ratio of 50% or more by the end of FY2028) is combined with high-value-added consulting. The Game Content Business operates on two axes: contract development and paid in-house games. The company also utilizes M&A to expand its business and talent base as a means of growth.
Company Strengths
The manual auto-creation software "Dojo," released in 2008, has been adopted by over 3,000 companies cumulatively. The product line has expanded to include "Dojo Navi" and "Dojo Web Manual," with expansion into the local government market also underway. The Techwise Consulting Business posted net sales of ¥946 million and a segment profit margin of 26.8% in FY2025 (ended May 2025), maintaining high profitability.
Since entering the mobile business in 2001, the company has accumulated a track record of over 1,000 Web system and app development projects. By combining agile development, centered on LAMP-stack engineers, with lab-style development (Tendra Lab), the DX Solutions Business achieved net sales of ¥3,609 million and a segment profit margin of 24.5% in FY2025 (ended May 2025).
Since 2022, the company has made several companies subsidiaries, including Sanyu Technology, Skyarts Co., Ltd., Intelligent Systems, and Almondo Co., Ltd. Through the consolidation of Intelligent Systems and Almondo as subsidiaries in December 2024, the company simultaneously strengthened its DX development capabilities and expanded its ability to provide AI solutions.
ENVALITH's Perspective
Performance Trend
Revenue continued an expansionary trend, growing from ¥3,509 million in FY2022 to ¥5,175 million in FY2024, but in FY2026 it declined for the first time, falling to ¥5,131 million (down 8.0% year on year). Operating profit peaked at ¥546 million in FY2024, then fell sharply for two consecutive periods to ¥428 million in FY2025 and ¥165 million in FY2026, with the operating margin dropping to 3.2%. The main causes were the loss of revenue following the completion of a large-scale project in the DX Solutions Business (segment revenue down 15.3% year on year) and profit pressure from SG&A expenses remaining elevated. As an external factor, restrained outsourcing and intensified competition for project awards in the consumer game contract development market also contributed to the deterioration in profitability of the Game Content Business (segment profit down 74.8% year on year). For FY2027, the company forecasts revenue of ¥5,400 million and operating profit of ¥300 million, anticipating a recovery in profitability.
Growth Strategy
In the "Foundation Year" for revenue structure transformation, the company is shifting toward a stock-type, high-value-added business model
TRAN-DX, which provides an integrated offering of BPR, SaaS integration, and post-implementation operational improvement support, is positioned as a growth driver to promote the shift from a revenue structure dependent on one-off development to a stock-type model including ARR. In parallel, the company is working to curb the ratio of zero-scratch development and improve development efficiency through cloud-native and AI utilization.
The company is strengthening proposal activities capturing municipalities' needs for operational standardization and knowledge transfer, aiming to expand sales channels in the public sector and expand the stock revenue base. Initial results from expanded municipal deployment and horizontal rollout were confirmed in FY2026 (ending May 2026), and further progress in continued usage is expected.
The company is deploying AI-premised business transformation support and continuous operation services utilizing Azure OpenAI and other tools, expanding beyond individual PoCs and contract development into standardization of AI implementation know-how and continuous improvement support. The company aims to capture cloud and AI-related demand around Microsoft 365, Fabric, and other platforms to raise per-project unit prices.
While reviewing the portfolio of existing online game titles (including termination of operations and business transfers), the company is promoting expansion into non-game areas such as advertising videos and music videos, centered on the Video & Effects Production (Skyarts) area. FY2027 (ending May 2027) is positioned as a year for building organizational structure and track record, with the aim of securing large-scale full-scope contracted projects from FY2028 (ending May 2028) onward.
The company is working to eliminate variability in project profitability through strengthened pre-order review, redefinition of key customers, and enhanced coordination between sales and delivery teams. The fact that FY2026 (ending May 2026) results exceeded the revised forecasts for net sales, operating profit, and ordinary profit has been confirmed as an initial outcome of improved management precision.
Last updated: July 17, 2026