Logizard Co., Ltd

Business Details

Centered on the warehouse and distribution center-oriented WMS "Logizard ZERO," the company offers store inventory management "Logizard ZERO-STORE" and OMO support "Logizard OCE" via the cloud. Main customers are retailers (including EC businesses), distribution companies, and 3PL firms. Revenue is composed of three categories: Cloud Services (monthly usage fees), Development & Implementation Services (customization and implementation support), and Equipment Sales Services (handheld terminals, etc.). The company continues to capture labor-saving and automation needs stemming from the chronic labor shortage in the logistics industry, and continues to build up recurring (stock-type) revenue by acquiring new client accounts.

Recent Overview

Net sales increased 8.4%, but due to higher expenses, operating income declined 14.6%, continuing the pattern of higher revenue but lower profit

For the nine months ended Q3 FY2026 (ending June 2026) (July 2025 to March 2026), the company secured increased sales of ¥1,772 million (up 8.4% year on year), while selling, general and administrative expenses rose 24.7% year on year from ¥568 million to ¥709 million, resulting in a significant decline in operating income to ¥305 million (down 14.6% year on year). Cloud services performed solidly at ¥1,403 million (up 9.4% year on year) due to an increase in new client accounts. Development & Implementation Services also increased to ¥305 million (up 8.3% year on year) on orders for large-scale and continued projects. Equipment sales declined to ¥62 million (down 9.9% year on year) due to a decrease in large-scale projects. Software assets increased in connection with the basic function version upgrade of "Logizard ZERO." The full-year earnings forecast remains unrevised at net sales of ¥2,439 million and operating income of ¥355 million.

Key Products

Growth Drivers

• Accumulation of monthly recurring revenue through acquisition of new cloud service clients (cloud service sales for the nine months ended Q3 FY2026, ending June 2026, of ¥1,403 million, up 9.4% year on year)
• Expanding WMS demand driven by growing needs for labor-saving and automation amid the chronic labor shortage in the logistics industry
• Expanding WMS needs in the B2B corporate logistics field (demand for DX promotion and cloud replacement)
• Enhanced product value through stronger integration with logistics robots, RFID, and material handling equipment
• Penetration of "Logizard ZERO-STORE" and "Logizard OCE" among retailers pursuing OMO strategies
• Improved business operation capabilities through enhanced high-touch services, strengthened B2B corporate initiatives, and organizational reform based on the medium-term management plan

Risks

• Decline in profit margin due to increased SG&A expenses associated with AI adoption, business process reform, and human capital investment (SG&A expenses for the nine months ended Q3 FY2026, ending June 2026, increased 24.7% year on year to ¥709 million; full-year operating income forecast down 12.9% year on year to ¥355 million)
• Risk of fluctuations in orders for large-scale projects in Development & Implementation Services
• Risk of man-hour overruns and provisions for losses on orders received due to increasing complexity of development projects
• Risk of lost opportunities in Equipment Sales Services due to fewer large-scale projects and supply chain disruptions (geopolitical risk)
• Risk that macroeconomic uncertainty—such as rising crude oil prices stemming from US trade policy and instability in the Iran situation—affects the investment decisions of major clients
• Risk of cloud service outages due to cyberattacks or information leaks (associated countermeasure costs also continuing to rise)