YMIRLINK, Inc.

Business Details

Yumirlink Co., Ltd. group provides multi-channel distribution services—including email, SMS, and web push—to corporations and municipalities in SaaS and software formats, centered on its "Cuenote" series of messaging platforms. The majority of revenue consists of subscription-based recurring revenue, giving the company a stable earnings base. In the first quarter of FY2026 (ending December 2026), the company achieved year-on-year growth in both revenue and profit, driven by expanded adoption among enterprise companies and strong performance of its SNS operation outsourcing service.

Recent Overview

In Q1 of FY2026 (ending December 2026), revenue was ¥829 million and operating profit was ¥153 million, representing growth in both revenue and profit; the full-year forecast remains unchanged

In the first quarter of FY2026 (ending December 2026) (January to March 2026), Cuenote SaaS subscription revenue for enterprise companies performed well, growing 13.7% year-on-year to an equivalent of ¥769 million, while SNS operation outsourcing grew 38.1% year-on-year to an equivalent of ¥52 million, resulting in revenue of ¥829 million (up 14.4% year-on-year) and operating profit of ¥153 million (up 8.1% year-on-year). Meanwhile, spot-type revenue (initial revenue and software licenses) remained at an equivalent of ¥7 million, down 26.3% year-on-year due to a decrease in customization revenue and other factors. In March 2026, API integration between Cuenote SMS and Yoom was implemented, along with the addition of a distribution API and display time customization feature to Cuenote Push. There has been no change to the full-year earnings forecast (revenue of ¥3,360 million, operating profit of ¥530 million).

Key Products

Growth Drivers

• Expansion of Cuenote SaaS subscription adoption among enterprise companies, driving increased distribution volume and accumulation of recurring revenue (recurring contract value at end of Q1 was equivalent to ¥260 million, up 13.2% year-on-year)
• Continued high growth in the SMS delivery market and increased distribution volume for Cuenote SMS
• Expansion of SNS-related revenue driven by high growth in the SNS operation outsourcing service (up 38.1% year-on-year)
• Capturing workflow automation demand across over 700 tools through API integration between Cuenote SMS and Yoom (a hyperautomation tool)
• Enhanced functionality and increased customer value through the addition of a distribution API and notification display time customization feature to Cuenote Push
• Expansion of the ecosystem through official partner certification for the Cybozu "kintone" integration service
• Continued expansion of SaaS demand against a market backdrop of cloud service adoption rates exceeding 80%

Risks

• Risk of continued decline in spot-type revenue (initial revenue and software licenses) (down 26.3% year-on-year in Q1 of FY2026 ending December 2026)
• Decline in operating profit margin due to increased capital expenditure and hiring costs to secure competitive advantage (full-year forecast: operating profit margin of 15.8%, a significant decline from 22.0% in the previous fiscal year)
• Pressure on profit margins as the pace of increase in cost of sales and SG&A expenses exceeds the pace of revenue growth (in Q1, cost of sales increased 18.6% year-on-year and SG&A expenses increased 13.9% year-on-year)
• Risk of reduced corporate IT investment due to deterioration in the macroeconomic environment, including heightened international tensions and rising resource prices
• Risk of outflow in recurring contract value due to cancellations within the existing email service customer base
• Uncertainty regarding the earnings contribution of subsidiary businesses following the extinction of goodwill (goodwill for a consolidated subsidiary was fully impaired in the previous fiscal year)