ENVALITH
ロジザード株式会社 logo

Logizard Co., Ltd

4391・Growth Market・Information & Communication

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ロジザード株式会社 logo
Logizard Co., Ltd4391

Business

Logizard Co., Ltd. was founded in 2001 and operates as a single-segment company in the Inventory Management System Business, centered on its cloud-based warehouse management system (WMS) for warehouses and distribution centers, "Logizard ZERO," alongside its store inventory management system "Logizard ZERO-STORE" and its OMO support system "Logizard OCE." Its main customers are retailers (e-commerce and physical stores), distribution companies, and 3PL companies, and it also provides handheld terminal rentals and equipment sales as ancillary services. The company is listed on the Growth Market of the Tokyo Stock Exchange.

Business Model

Approximately 79% of net sales (FY2025 (ending June 2025): ¥1,724 million) consists of monthly usage fees and rental fees for cloud services, representing a stock-type revenue model. The remainder is composed of contracted development and implementation support, the "Development & Implementation Services" (¥365 million), and equipment and supply sales (¥88 million). Cloud services carry a high gross margin, creating a structure in which the accumulation of new client accounts translates directly into profit growth.

Company Strengths

Cloud services revenue for FY2025 (ended June 2025) was ¥1,724 million (up 10.2% year on year), with gross profit of ¥1,092 million (up 17.0% year on year). The gross margin for cloud services stands at a high level of approximately 63%, establishing a recurring revenue structure in which the accumulation of new clients directly translates into margin improvement.

The company has specialized in developing and providing warehouse inventory management systems for over 20 years since its founding. It released the cloud-based "Logizard ZERO" in 2012, which comes standard with features addressing the diverse needs of logistics operations, including multi-language support (5 languages), multi-site management for 3PL providers, and expiration date, lot, and serial number management.

As of the end of FY2025 (ended June 2025), cash and cash equivalents stood at ¥1,707 million, with net assets of ¥2,177 million. The company has no interest-bearing debt, and operating cash flow was ¥437 million (up 24.5% year on year), giving it a financial foundation capable of funding capital expenditures and development investments with its own funds.

ENVALITH's Perspective

Cumulative revenue for the first nine months of FY2026 (ending June 2026) was ¥1,772 million (up 8.4% year on year), maintaining a revenue growth trend. However, selling, general and administrative expenses expanded sharply from ¥568 million to ¥709 million, up 24.7% year on year, resulting in a substantial decline in operating profit to ¥305 million (down 14.6% year on year). As the first year of the medium-term management plan, cost increases associated with organizational reform and the strengthening of high-touch services are weighing on profits, and the timing of profit recovery will be the key focus if the investment phase continues to be prolonged.

The full-year earnings forecast (revenue of ¥2,439 million, operating profit of ¥355 million) remains unrevised. However, against cumulative nine-month operating profit of ¥305 million, the full-year forecast of ¥355 million implies that ¥50 million in profit must be secured in the fourth quarter (a single quarter) alone. This is the same level as the actual Q4 result in the prior year (full-year ¥408 million minus cumulative nine-month ¥358 million = ¥50 million), suggesting the target is achievable, though downside risk remains depending on the trend in SG&A expenses.

Cloud services continued stable growth, up 9.4% year on year, with steady accumulation of recurring revenue progressing smoothly. On the other hand, Equipment Sales Services saw revenue decline to ¥62 million (down 9.9% year on year) due to the drop-off of a large-scale project recorded in the prior period. As for the external environment, growing demand for labor-saving and automation driven by chronic labor shortages in the logistics industry is providing a tailwind for WMS demand, but macro uncertainties such as US trade policy and the situation in Iran also pose a risk of affecting customers' capital expenditure decisions.

Growth Strategy

Building up cloud stock revenue through three pillars: BtoB logistics DX, OMO, and labor-saving equipment integration

Promoting high-touch service that underpins the 'absolute shipping' principle as a key initiative of the medium-term management plan. By ensuring business continuity for customers, the company aims to reduce churn rates and drive upselling, thereby strengthening the stock revenue base of its cloud services.

Expanding the target market beyond the traditional focus on EC and 3PL to include BtoB logistics among manufacturers, wholesalers, and other companies. By capturing DX promotion and cloud replacement demand, the company aims to boost revenue through the development of new customer segments.

A version upgrade of Logizard ZERO's core functions was implemented in the third quarter of FY2026 (ending June 2026), increasing the software balance from ¥361 million to ¥432 million. Continuous functional enhancement aims to promote continued usage among existing customers and improve the ability to acquire new customers.

In response to labor-saving and automation needs driven by chronic labor shortages in the logistics industry, the company is enhancing the integration functionality between WMS and peripheral equipment and robots, thereby increasing product value-added and differentiating itself from competitors.

Organizational reform is underway as the first year of the medium-term management plan. The increase in SG&A expenses (up 24.7% year on year) reflects this investment phase, and the company aims to build a foundation for medium- to long-term business growth through the establishment of an improved organizational structure.

Last updated: July 17, 2026