ENVALITH
サイバーソリューションズ株式会社 logo

CyberSolutions Inc.

436A・Growth Market・Information & Communication

サイバーソリューションズ株式会社 logo
CyberSolutions Inc.436A

Business

CyberSolutions Inc. operates under the corporate philosophy of "continuing to deliver secure business communication to Japanese companies," and runs two businesses: the Security Solutions business, centered on email security (Cloud Mail SECURITYSUITE, MailGates, etc.), and the Communication Solutions business, which provides email services (CyberMail, CYBERMAILΣ), business chat, groupware (SecureBoard), and cloud storage (SecureDrive), among others. Its main customers are corporations, primarily mid-sized domestic companies, and it delivers services through both direct sales and sales agents. In FY2025 (ended April 2025), net sales reached ¥3,126 million, and the number of cloud service contract accounts reached 1,279 thousand accounts (889 thousand accounts excluding duplicates).

Business Model

Through fabless management that outsources product development to external partners (such as Taiwan's Openfind), the company suppresses fixed costs and manages development costs as variable costs linked to revenue. 95% of revenue is composed of subscription-based recurring revenue, and the effective churn rate for cloud services has achieved negative churn (△0.14%). A cumulative revenue expansion structure has been established in which cross-selling and upselling to existing customers exceed churn. The IFRS pre-tax profit margin for FY2025 (ending April 2025) reached 39%.

Company Strengths

The company achieved negative net churn for two consecutive periods in its cloud services: -0.10% in FY2024 (ending April 2024) and -0.14% in FY2025 (ending April 2025). Revenue growth from cross-selling and upselling to existing customers exceeded the amount of cancellations, expanding ARR from ¥2,753,042 thousand to ¥3,152,309 thousand. The recurring revenue ratio reached 95%.

Through a fabless management model that outsources product development and manages development costs as variable costs linked to revenue, the company achieved IFRS operating profit of ¥1,233 million in FY2025 (ending April 2025) (up 34.5% year on year), with a pre-tax profit margin of 39%. Cash flow from operating activities was ¥1,130 million (IFRS basis), indicating high quality of earnings.

In September 2024, TKC Corporation made a capital investment in the company, and in December 2024, the company entered into a business and capital alliance with Hitachi Systems, Ltd. (contract term of two years, automatically renewable). The alliance with Hitachi Systems promotes collaboration aimed at strengthening and expanding the customer base, developing new businesses, and solving business challenges, leading to a substantial expansion of sales channels.

ENVALITH's Perspective

Against the full-year FY2025 (ended April 2025) sales growth rate of 14%, Q1 of the fourth fiscal year (May–July 2025) saw IFRS sales of ¥875 million (up 17.6% year-on-year) and operating profit of ¥364 million (up 46.2% year-on-year), indicating accelerating growth. This suggests that orders in the security solutions business remain firm, supported by rising demand for anti-phishing fraud countermeasures.

The intellectual property rights for the core functions of the flagship product are held by Taiwan's Openfind, and there is a renewal risk regarding the exclusive sales license agreement (through December 2027). In addition, management is highly dependent on President and Representative Director Lin Chieh-hung, and the company discloses this dependence on a specific individual as a high risk in its securities report. Strengthening the organizational structure is a challenge from the standpoint of business continuity.

The LBO borrowings taken on at the time of the MBO were fully repaid in July 2024, eliminating the financial covenants and collateral provision obligations. IFRS equity as of the end of FY2025 (ended April 2025) expanded sharply to ¥2,420 million (up ¥926 million from the previous fiscal year-end), and financial soundness improved substantially. On the other hand, goodwill impairment risk continues to warrant close monitoring, and maintaining future profitability remains a premise for the assessment.

Growth Strategy

Accelerating ARR expansion through a three-pronged approach of new product launches, strategic partnerships, and enhanced cross-selling

Following the release of SecureDrive (November 2024) and SecureBoard / SecureCommunicationONE (February 2025), the company is expanding its business domain from mail and security into an integrated communication platform. The policy is to offer low-priced packages targeted at mid-sized companies.

Following TKC's capital participation in September 2024 and the business and capital alliance with Hitachi Systems in December 2024, the company is expanding its customer base through major partners beyond its existing direct sales and agency network. The collaboration aims to strengthen and expand the customer base and promote new business development jointly.

The company is building an organized customer follow-up structure for existing customers, including regular visits to conduct customer satisfaction surveys, guidance on new services, and enhanced communication with key customer contacts. It aims to achieve cumulative ARR expansion by maintaining and deepening negative churn.

The company is promoting research and development to improve mail audit search accuracy through AI utilization in its messaging archive product, ENTERPRISE AUDIT, as well as operational efficiency improvements such as ticket analysis, voice analysis, and log anomaly detection. R&D expenses for FY2025 (ending April 2025) were ¥64 million.

The company is strengthening sales promotion activities, including actively promoting use cases, participating in marketing events, and running web advertisements, in order to acquire new customers and expand its sales agency network. The company has set the goal of becoming "Japan's only comprehensive mail security manufacturer."

Last updated: April 27, 2026