eXmotion Co., Ltd.

Business Details

Provides consulting specialized in quality improvement of software embedded in automobiles, robots, digital devices, and other products. Characterized by a one-stop model in which the company's own consultants directly execute everything from proposal to problem resolution. Major customers include domestic automakers and suppliers such as SUBARU and Toyota Motor. In addition to consulting, the company also operates recurring-revenue (stock) businesses such as the online learning platform "Eureka Box" and "CoBrain," a requirements-definition support service utilizing generative AI. Amid the accelerating shift toward SDx, the company is expanding its solutions utilizing generative AI.

Recent Overview

In the interim period of FY2026 (ending November 2026), both revenue and operating profit progressed favorably with double-digit year-on-year growth

Revenue for the interim period of FY2026 (ending November 2026) (December 2025 to May 2026) was ¥706 million (up 4.6% year on year), and operating profit was ¥97 million (up 30.2% year on year), achieving increases in both revenue and profit. While cost of sales decreased year on year (from ¥410 million to ¥405 million), gross profit expanded from ¥265 million to ¥301 million, and the operating margin improved from 11.1% to 13.9%. Customer acquisition in new industry sectors outside the automotive industry progressed steadily, and business model transformation advanced, including the acquisition of contracts under new consulting support formats utilizing generative AI and the launch of the "AI-based Test Generation Service for Model-Based Development." There has been no change to the full-year earnings forecast (revenue of ¥1,451 million, operating profit of ¥204 million), with interim progress rates of 48.7% for revenue and 47.8% for operating profit. In addition, the company implemented a 2-for-1 stock split effective June 1, 2026.

Key Products

Growth Drivers

• Expansion of customer acquisition in new industry sectors outside the automotive industry (medical, construction machinery, etc.)
• Strengthening the earnings base through increased customer numbers and recurring-revenue (stock) business development of the generative AI-utilizing service "CoBrain"
• Steady performance of "Eureka Box" against the backdrop of reskilling demand
• Rising demand for embedded software development support driven by the advent of the SDx (software-defined) era
• Business model transformation through new generative AI-utilizing consulting support formats (such as the AI-based Test Generation Service for Model-Based Development)
• Improved cash flow through shortened consulting contract terms and earlier collection of accounts receivable

Risks

• Revenue dependence on specific customers and the automotive industry (sales to SUBARU account for 38.2% of total, and sales to Toyota Motor account for 17.1%)
• Risk of a downturn in the automotive industry due to the impact of U.S. trade policy
• Risk of lost opportunities due to difficulty securing consultant personnel (intensifying competition for talented staff)
• Risk of delayed business model transformation amid the shift in software development methods driven by generative AI
• Risk of increased costs associated with development investment in new services such as CoBrain (spending on acquisition of intangible fixed assets increased significantly year on year)
• Risk that rising crude oil prices due to heightened tensions in the Middle East could lead manufacturing customers to curb capital expenditure