ENVALITH
株式会社ハイブリッドテクノロジーズ logo

Hybrid Technologies Co., Ltd.

4260・Growth Market・Information & Communication

Official website
株式会社ハイブリッドテクノロジーズ logo
Hybrid Technologies Co., Ltd.4260

Business

Hybrid Technologies Co., Ltd. is a software development company that leverages Vietnamese IT talent to promote clients' DX, against the backdrop of Japan's IT labor shortage. As "Hybrid-type Services (Single Segment)," the company provides an integrated, end-to-end set of DX support processes spanning business strategy, UX/UI design, development, maintenance and operations, and growth hacking. Its main customers are Japanese companies, with the Airtrip Group being its largest customer, accounting for 26.7% of revenue. Six group companies (five domestic companies plus a Vietnamese subsidiary) have built a structure specialized by process, and in October 2025 the company consolidated the Vietnam-based IT firm NGSC as a subsidiary, beginning full-scale expansion into the Vietnamese domestic market as well.

Business Model

Stock Services (Quasi-Delegation / Staffing Contracts), which accounted for approximately 84% of revenue (FY2025 ending September 2025), provide personnel-based services to client projects under quasi-delegation contracts and staffing contracts, generating recurring revenue based on utilization volume as a stock-type model. The remainder consists of Flow Services (Contract-Based Services). Through a three-party contractual structure in which the Vietnamese subsidiary handles development and implementation while the Japanese entity handles upstream processes, client negotiations, and payment collection, the company achieves both cost competitiveness and quality control.

Company Strengths

As of the end of September 2025, the recruitment candidate list in Vietnam has reached over 34,000 individuals with development experience and over 3,300 new graduates. The company's listing on the TSE Mothers market in December 2021 was covered by Vietnamese domestic media, raising brand recognition. Combined with high-level employee benefits, this enables a flexible recruitment framework tailored to client needs.

Six subsidiaries specialize in each process stage, including business strategy consulting (Hybrid Business Consulting), UX/UI design (Wur), standardized development (Dokodoa), and IT staffing (Hybrid Tech Agent). With the consolidation of Hybrid Business Consulting as a subsidiary in August 2025, the company completed an integrated framework covering even the IT consulting phase prior to requirements definition.

The proportion of Stock Services in revenue remains at a high level, at 84% in FY2025 (ending September 2025), down from 94% in FY2022 (ending September 2022). The recurring billing model based on quasi-delegation and staffing contracts ensures stability in cash flow. The number of Stock Services contracts at the end of FY2025 (ending September 2025) was 59 (an increase of 4 from the previous period).

ENVALITH's Perspective

Revenue for the interim period of FY2026 (ending September 2026) surged to ¥3,200 million (up 105.0% year on year), and operating profit also improved substantially to ¥124 million (up 345.9% year on year). However, the interim loss attributable to owners of the parent widened to ¥41 million from a loss of ¥26 million in the same period of the prior year. Non-controlling interests' profit was large at ¥85 million, meaning that the majority of the consolidated profit is attributable to non-controlling interests—an important point to note when assessing the substantive profitability accruing to the parent company's shareholders.

Against the full-year earnings forecast (revenue of ¥5,119 million and operating profit of ¥165 million), the interim period had already achieved 62.5% of revenue and 75.0% of operating profit. The earnings structure is weighted toward the second half, and the key to achieving the full-year targets lies in the progress of PMI (post-merger integration) for the three newly consolidated companies and the continuation of the recovery trend in existing businesses. It should also be noted that the purchase price allocation for MCP35 Co., Ltd. had not been completed as of the end of the interim period, and provisional accounting treatment is continuing.

Due to M&A-related fund procurement and other factors, borrowings (current and non-current combined) increased sharply from ¥548 million at the end of the previous fiscal year to ¥1,878 million at the end of the current interim period. Cash flow from operating activities was negative ¥254 million (compared with negative ¥55 million in the same period of the prior year), mainly due to a substantial increase in trade receivables (¥815 million). While cash balances were maintained through financing activities that raised ¥599 million, the continued negative operating cash flow and the increase in interest-bearing debt warrant ongoing attention from the perspective of financial soundness.

Growth Strategy

Expanding the three domains of development, overseas, and human resources through M&A-led growth, while promoting business efficiency through the use of generative AI

The company consolidated NGSC, which conducts comprehensive IT support business in Vietnam, and has begun full-scale operations in the development, implementation, and operational support of core systems such as ERP for domestic Vietnamese customers. In the current interim period, revenue of ¥1,463 million and segment profit of ¥220 million were recorded, and the business is beginning to function as a new pillar of earnings.

On January 16, 2026, the company acquired MCP35 (100%), making its core subsidiary Groove System a sub-subsidiary. The company is promoting the utilization of its client base, centered on major SIers, and strengthening its mutual engineer supply and recruitment/training systems. Revenue in the Human Resources Domain for the current interim period expanded sharply to ¥581 million (¥131 million in the same period of the previous year). Against acquisition consideration of ¥195 million, the purchase price allocation is still being provisionally processed.

Based on a resolution of the Board of Directors on January 15, 2026, the company restructured from its previous single segment, Hybrid-type Services (Single Segment), into three categories: Development Domain – Japan Business, Development Domain – Overseas Business, and Human Resources Domain. It has begun operating a system for setting KPIs and planning growth initiatives tailored to the characteristics of each service.

The company is advancing verification of the appropriate introduction of generative AI technology into development operations and administrative work to improve business efficiency, aiming to move toward a fundamental transformation of its business model beyond mere efficiency gains. Progress has been reported in the current interim period, but specific quantitative effects have not yet been disclosed.

The additional costs arising from the closure of the Da Nang development site and the transition to other sites, which had been the main cause of the stagnant results in prior years, had been resolved by the end of the previous fiscal year. In the current interim period, the Development Domain – Japan Business recorded revenue of ¥1,160 million (¥1,431 million in the same period of the previous year), a decrease, but secured segment profit of ¥162 million (¥253 million in the same period of the previous year).

Last updated: July 17, 2026