BPLATS, INC.

Business Details

Under the mission "Subscription for Every Business," the company develops and provides cloud-based delivery of "Bplats®," an integrated subscription platform for enterprises. It offers back-office management functions, front-end functions such as marketplaces and My Page, and "connectivity" functions for ecosystem building, all as an integrated package. In FY2026 (ending March 2026), the recurring revenue ratio was 74.0% (down from 82.0% in the prior year period). The company is developing "AI×Monetization" for generative AI service providers as a new area of focus.

Recent Overview

Fell into negative net worth due to recording an impairment loss of ¥773 million, but operating loss improved substantially and a return to operating profit is expected next fiscal year

In FY2026 (ending March 2026), net sales were ¥727 million (up 2.9% year on year), a slight increase. Cost of sales decreased substantially from ¥550 million to ¥444 million due to reductions in telecommunications infrastructure costs, and operating loss improved to ¥126 million (from ¥207 million in the prior period). On the other hand, the recording of an impairment loss of ¥773 million related to software (intangible fixed assets) and shared assets (tangible fixed assets) as an extraordinary loss caused net loss for the period to expand to ¥926 million, and net assets fell into negative net worth of ¥447 million. Material doubt regarding the going concern assumption continues to exist. In the fourth quarter, the company secured its largest-ever initial setup fee order since its founding, from a generative AI service provider. For FY2027 (ending March 2027), the company forecasts net sales of ¥698 million (down 4.0% year on year) and operating income of ¥62 million, representing a decrease in revenue but an increase in profit and a return to operating profitability. As a subsequent event, the company plans to reduce capital by ¥96 million and capital reserves by ¥324 million effective August 1, 2026, to offset accumulated deficit (¥420 million).

Key Products

Growth Drivers

• Improved profitability through reduced telecommunications infrastructure costs: cost of sales decreased substantially from ¥550 million in the prior period to ¥444 million, improving the gross profit margin from 22.1% to 38.9%
• Reduced depreciation and amortization burden following recognition of impairment loss: the impairment of fixed assets substantially reduces the depreciation and amortization burden going forward, contributing to a return to operating profitability
• "AI×Monetization" for generative AI service providers: secured the largest-ever initial setup fee order since founding in the fourth quarter, applying subscription billing expertise to the complex fee calculation and billing management unique to generative AI
• 20% increase in monthly fixed fee for existing customers (implemented April 2025): the average recurring revenue unit price per contract has been steadily increasing
• Expansion of the sales partner network: concluded a sales partnership agreement with NSW Corporation (which holds its own IoT and other products) in June 2025, among others
• Launch of new products and services: market development through SaaSplats® (May 2025) and Bplats® Collabo (October 2025)
• Capital and business alliance with Growth Partners Co., Ltd.: support for fundraising, including equity finance, and management support

Risks

• Material doubt regarding the going concern assumption: cash and deposits of ¥292 million fall below the combined total of ¥342 million in short-term borrowings (¥250 million) and current portion of long-term borrowings due within one year (¥92 million), and the company is in breach of financial covenants on its convertible bond-type bonds with subscription rights to shares (¥300 million), giving bondholders the right to demand early redemption
• Negative net worth: net assets at the end of FY2026 (ending March 2026) stood at negative ¥447 million (versus positive ¥285 million at the end of the prior period), with an equity ratio of -109.1%
• Risk of declining number of recurring revenue contracts: in FY2026 (ending March 2026), recurring revenue declined due to a decrease in the number of contracted companies, and the recurring revenue ratio also fell from 82.0% to 74.0%
• Forecast of declining revenue: for FY2027 (ending March 2027), net sales are forecast to decrease 4.0% year on year to ¥698 million, with challenges to stability given the high dependence of spot revenue on large-scale projects
• Dilution risk from fundraising: dilution of shares from the exercise of stock acquisition rights and convertible bond-type bonds with subscription rights to shares issued to Growth Partners; shares outstanding increased from 2,467 thousand shares at the end of the prior period to 2,912 thousand shares at the end of the current period
• Uncertainty regarding equity finance: fundraising activities remain at the discussion stage and are not confirmed, and material uncertainty exists regarding the feasibility of countermeasures
• Monetization risk for new businesses such as "AI×Monetization": initiatives targeting the generative AI market are still in their early stages, and the outlook for continuously securing large-scale orders remains uncertain