ENVALITH
HEROZ株式会社 logo

HEROZ, Inc.

4382・Standard Market・Information & Communication

Official website
HEROZ株式会社 logo
HEROZ, Inc.4382

Business

HEROZ, Inc. was founded in 2009 under the concept of "Putting Wonder into Hearts." Built on machine learning and deep learning technologies developed through Shogi AI, the company drives AI Transformation (AIX) across both BtoC (Shogi Wars, etc.) and BtoB (AI solutions and SaaS) fronts. The group includes VarioSecure (managed security), Strategit (SaaS integration), AI Square (contact center AI), Tijuana.com (AI Sakura-san), and VOIQ (inside sales support). Operating through two segments—the AIX Business and the AI Security Business—the company serves a broad customer base ranging from mid-sized and small-to-medium enterprises to large corporations. Listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

Revenue is broadly structured around two axes. In the AIX Business, the pillars are initial setup fees (flow) and monthly recurring fees (stock) for AI solution development, SaaS subscriptions such as HEROZ ASK, AI Sakura-san, and JOINT, and paid revenue from Shogi Wars. In the AI Security Business, VarioSecure provides managed security services on a monthly billing basis, with recurring revenue accounting for 87.9% of revenue. A track record of deployment at 7,670 locations across all 47 prefectures nationwide and a low churn rate (0.71%) underpin revenue stability.

Company Strengths

The company developed a Shogi AI that defeated an active professional Shogi player in 2013, and holds game record data from a cumulative total of 1 billion games (surpassed in February 2025). The implementation know-how in machine learning, deep learning, and reinforcement learning is transferred to AI solutions across various industries, serving as a source of technical differentiation.

As of the end of February 2025, Variosecure provided managed security services to 7,670 locations across all 47 prefectures in Japan. The churn rate (on a value basis) is extremely low at 0.71%, and recurring revenue accounts for 87.9% of revenue, forming a stable revenue base.

Since 2022, the company has successively brought Variosecure, Strategit, AI Square, Tifana, .com, and VOIQ into the group. HEROZ ASK is growing, surpassing a cumulative total of over 250 contracted customers as of May 2025 and an ARR (as of January 2026) of ¥130 million. VOIQ's inside sales function contributes to improving sales efficiency across the group as a whole.

ENVALITH's Perspective

Net losses continued for three consecutive periods from FY2022, but in FY2026 (ending April 2026) the company recorded net income of ¥376 million, achieving its first return to profitability. Although this was aided by a gain on sale of affiliate shares (¥311,135 thousand), operating income also rose 71% year on year to ¥523 million, confirming an improvement in core business profitability as well. Restated operating cash flow expanded to ¥647 million, roughly triple the prior period, indicating a marked improvement in cash-generating capacity.

In the financial results announcement released on June 12, 2026, it was revealed that the contingent consideration of ¥55,165 thousand related to the acquisition of Tifana.com had been misclassified between operating CF and investing CF, and this was subsequently corrected. Post-correction figures show operating CF of ¥647 million and investing CF of negative ¥21 million. While there is no impact on the balance sheet, income statement, or statement of comprehensive income, the error in M&A-related CF treatment may draw investor attention to the company's internal controls over the disclosure process.

Revenue grew more than fourfold over four periods, from ¥1,483 million in FY2022 to ¥6,425 million in FY2026, demonstrating a clear growth trajectory. Meanwhile, the pace of ARR accumulation for HEROZ ASK (which surpassed ¥130 million as of January 2026) and the buildup of recurring revenue in the AI Security Business will be key to sustained profit growth. Externally, the full-scale emergence of generative AI demand and expanding corporate DX investment serve as tailwinds, but intensifying competition leading to pricing pressure and rising personnel costs remain risks that could constrain upside in profit margins.

Growth Strategy

Under the AI BPaaS strategy, expanding recurring revenue across the three pillars of AI agents, SaaS, and security

ARR for the enterprise AI search and AI agent product HEROZ ASK surpassed ¥130 million as of January 2026. As generative AI and AI agent investment shifts from proof-of-concept trials to full-scale adoption, the company aims to secure large-scale deals and continue increasing the number of client companies and IDs in use.

With Variosecure's Vario Ultimate Zero and Vario Managed EDR as core offerings, the company is expanding its managed security customer base for mid-sized and small-to-medium enterprises while maintaining a low churn rate (0.71%). Utilizing VOIQ's inside sales function, the company aims to increase the number of sales opportunities and improve sales efficiency.

VOIQ's AI inside sales function is being deployed across the sales activities of group companies, achieving a significant year-on-year increase in the number of sales opportunities and improved sales efficiency. This contributes to reducing new customer acquisition costs for both the AIX Business and AI Security Business.

By introducing new services and content such as Sprint Mode and Season Pass, the company aims to increase MAU and the number of games played, continuing the stable accumulation of BtoC revenue. This contributes to diversifying revenue for the AIX Business.

The company is promoting product collaboration and cross-selling with acquired companies such as Tijuana.com (AI Sakura-san). Payment of the contingent consideration for the acquisition (¥55,165 thousand) has been completed, advancing the integration phase. The company aims to increase the ratio of recurring revenue across the group as a whole.

Last updated: July 17, 2026