ENVALITH
株式会社エクスモーション logo

eXmotion Co., Ltd.

4394・Growth Market・Information & Communication

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株式会社エクスモーション logo
eXmotion Co., Ltd.4394

Business

Ex-motion Inc. was established in 2008 and is listed on the Growth Market of the Tokyo Stock Exchange. It is a consulting company specializing in embedded software development. Its main clients are automobile manufacturers and suppliers, and it provides one-stop support from proposals to problem-solving, focusing on upstream processes such as model-based development, functional safety response, and quality improvement. In recent years, while capturing demand related to SDV (Software Defined Vehicle) support, the company has been diversifying its client base into fields such as healthcare and construction machinery, and is also promoting a recurring-revenue business model through its generative AI utilization service "CoBrain" and learning platform "Eureka Box". The company operates its business under a two-company structure, including its consolidated subsidiary, bubo Inc.

Business Model

The primary revenue source is fees from hands-on consulting, in which consultants work directly on-site at client locations. In addition, the company aims to build up subscription-type revenue through its online learning platform "Eureka Box" and its generative AI requirements-definition support service "CoBrain," pursuing a structure that layers these on top of the core consulting business. Expanding stock-type business that does not depend on the number of consultants is key to stabilizing revenue. In FY2025 (ending November 2025), the operating margin was 13.7% and the equity ratio was 89.9%, indicating high financial soundness.

Company Strengths

Revenue increased for three consecutive fiscal periods, from ¥1,105 million in FY2023 (ended November 2023) to ¥1,285 million in FY2024 (ended November 2024) to ¥1,387 million in FY2025 (ended November 2025). Operating profit also expanded from ¥132 million to ¥156 million to ¥190 million. Revenue, operating profit, and ordinary profit for FY2025 (ended November 2025) all reached record highs. The operating profit margin on revenue reached 13.7%.

Major customers for FY2025 (ended November 2025) were SUBARU Corporation (38.2% of revenue, ¥530 million), Toyota Motor Corporation (17.1%, ¥237 million), and Woven by Toyota, Inc. (7.7%, ¥107 million). The company's track record of supporting cutting-edge development in the domestic automotive industry serves as a barrier to entry for competitors.

As of the end of FY2025 (ended November 2025), the equity ratio stood at 89.9%, and cash and cash equivalents totaled ¥1,440 million (up ¥151 million from the previous fiscal year-end). The company maintains a financial structure close to debt-free management, and operating cash flow improved significantly to income of ¥252 million from ¥86 million in the previous fiscal year. Financial risk is extremely low.

ENVALITH's Perspective

In the interim period of FY2026 (ending November 2026), net sales were ¥706 million (up 4.6% year-on-year), while operating profit reached ¥97 million (up 30.2%), ordinary profit ¥100 million (up 29.5%), and interim net profit ¥64 million (up 31.2%), with profit growth substantially outpacing revenue growth. Cost of sales decreased from ¥410 million in the same period last year to ¥406 million, while gross profit expanded from ¥266 million to ¥301 million, indicating that improvements in the cost structure are driving margin expansion. Against the full-year earnings forecast (net sales of ¥1,451 million, operating profit of ¥204 million), the interim progress rate stood at 48.7% for net sales and 47.5% for operating profit, broadly in line with plan.

The structural risk of revenue dependency on the automotive industry remains, but management has noted that in the interim period of FY2026 (ending November 2026), the acquisition of new customer projects from other industry sectors is progressing smoothly. However, as the company reports under a single segment, the breakdown of sales by industry or customer is not disclosed, making it difficult for external parties to verify any quantitative improvement in dependency.

Operating cash flow for the interim period of FY2026 (ending November 2026) was ¥103 million, down from ¥146 million in the same period last year. The main cause was a narrowing in the change in trade receivables, from +¥79 million in the same period last year to +¥15 million, even as interim net profit before income taxes increased by ¥23 million year-on-year. In investing activities, acquisition of intangible fixed assets (¥22 million) increased, indicating ongoing development investment in AI and digital services. This is interpreted not as a deterioration in financial soundness but as a shift toward an investment phase combined with fluctuations in the timing of trade receivables collection.

Growth Strategy

Aiming for sustainable growth through two pillars: diversifying the customer base beyond the automotive sector and expanding AI-driven stock-type businesses

Promoting expansion into other industry fields such as healthcare and construction machinery. Management has noted that new customer acquisition from other industry fields is progressing steadily in the first half of FY2026 (ending November 2026), aiming to reduce the risk of dependence on specific industries and diversify the revenue base.

The number of customers for "CoBrain," a requirements-definition support service leveraging generative AI, continues to increase, with steady demand being captured. The company aims to strengthen its stock-type revenue base to reduce dependence on consulting revenue and stabilize earnings.

In the first half of FY2026 (ending November 2026), the company newly began offering the "AI-based Test Generation Service for Model-Based Development." By expanding its lineup of generative AI-driven solutions, it aims to create synergies with the Consulting Business and generate new revenue sources.

Against the backdrop of rising reskilling demand, "Eureka Box" continues to perform steadily. It is capturing needs for developing embedded software development talent and is also contributing to expanding customer touchpoints with the Consulting Business.

Last updated: July 17, 2026