Accrete Inc.

Business Details

Comprises three companies: Acrete Corporation, Technomics Corporation, and VietGuys J.S.C. Provides Domestic SMS Delivery Service (A2P-SMS) (advancing evolution into a multi-channel CPaaS platform integrating LINE, RCS, etc.), Overseas Messaging Service by Vietnamese subsidiary VGS, and email delivery services such as "School Safety Mail" and "Municipal Safety Mail" by Technomics. Has over 5,300 corporate customers.

Recent Overview

Domestic SMS performed steadily, but a decline in overseas SMS weighed on results; Q1 net sales fell 10.8% year on year

In the cumulative Q1 FY2026 (ending December 2026) consolidated period, domestic SMS sales trended steadily on the back of demand as a reliable means of communication, while overseas SMS sales declined year on year, resulting in overall segment net sales of ¥1,506 million (down 10.8% year on year) and segment profit of ¥277 million (down 5.8% year on year). Efforts to evolve into a multi-channel CPaaS platform integrating LINE, RCS, and other channels are also continuing.

Key Products

Growth Drivers

• Continued solid demand for domestic SMS delivery (expanding use beyond identity verification/authentication into contact and notification purposes)
• Enhanced added value through evolution into a multi-channel CPaaS platform integrating LINE, RCS, and other channels
• Promotion of multi-channel capability through the launch of "SMS Connect for LINE" in collaboration with Fourglobe
• Changes in the revenue structure driven by Vietnamese subsidiary VGS's diversification into OTT, solutions, and reward businesses
• Continued demand for various communication tools amid ongoing corporate digitalization

Risks

• Declining trend in overseas SMS sales (year-on-year decline continued in cumulative Q1 FY2026)
• Downward trend in unit selling prices due to price competition with competitors
• Risk that trends in services via overseas aggregators could significantly affect business results
• Risk of changes in contractual relationships with mobile carriers
• Declining trend in email delivery volume for the email delivery service due to the effects of the declining birthrate
• Risk from changes in the macroeconomic environment, such as historical yen depreciation and rising prices

Business Details

A segment that develops advanced, issue-resolving solutions leveraging AI technology and cutting-edge security technology. Its business domains include the GPU Server-related Business, driven by AI infrastructure demand amid the spread of generative AI; ANOTHER AI, which utilizes voice and facial image analysis technology; SchoMy, an IoT edge device for school education; and the domestic rollout of next-generation security technologies including PQC (Post-Quantum Cryptography). It is positioned as the core segment for "moving away from a single SMS business" under the Medium-Term Management Plan [2025-2027].

Recent Overview

The GPU Server-related Business expanded rapidly, with net sales roughly 30 times higher year on year, while the loss narrowed

In Q1 FY2026 (ending December 2026) (January to March 2026), sales from the GPU Server-related Business, driven by AI infrastructure demand amid the spread of generative AI, contributed significantly, resulting in net sales of ¥246 million, a sharp expansion of 2,955.4% year on year. The segment loss was ¥32 million, a slight improvement from ¥34 million in the same quarter of the prior year. The company has stated its plan to build up profits from the second quarter onward. As a subsequent event, the company borrowed ¥2,000,000 thousand (repayment due July 31, 2026) from Mizuho Bank as working capital to support the expansion of the GPU Server-related Business. In addition, it plans to establish a joint venture with CC, CustIntCo Japan Corporation (51% owned by Acrete, capital of ¥10,000 thousand), in May 2026, to strengthen the domestic rollout of its AI solutions business.

Key Products

Growth Drivers

• Rapid expansion of the GPU Server-related Business driven by AI infrastructure demand amid the spread of generative AI (the main driver of Q1 FY2026 (ending December 2026) net sales)
• Strengthened domestic rollout of ANOTHER AI and the Genie AI engine series through the establishment of CustIntCo Japan Corporation (a joint venture 51% owned by Acrete)
• Expansion of ANOTHER AI's sales channels (launch of BtoB customization services and online sales site, partnerships with multiple Singaporean companies)
• Domestic rollout of next-generation PQC-related security technologies through Forward Edge-AI Japan Corporation
• Advancement of the strategy to move away from a single SMS business under the Medium-Term Management Plan [2025-2027]

Risks

• The GPU Server-related Business is a new business category, with uncertain prospects for continued sales recognition (the April 2026 borrowing of ¥2,000,000 thousand has a short repayment deadline of July 31, 2026, requiring attention to business continuity)
• Ongoing upfront investment costs have led to continued segment losses, with uncertainty as to whether profitability will turn positive from the second quarter onward
• The PQC-related business (Forward Edge-AI Japan) was only recently established, creating uncertainty regarding the timing and scale of monetization
• ANOTHER AI is still at the stage of building out its commercialization foundation, and the timing of full-scale earnings contribution remains undetermined
• Risk that increased selling, general and administrative expenses associated with upfront investment in new business areas could pressure earnings
• Risk that the joint venture CustIntCo Japan Corporation, scheduled for establishment in May 2026, could take longer than expected to launch its business

Business Details

Promotes investments and loans in, and M&A of, promising companies, while focusing on creating synergies by combining the assets of group companies. Comprises three companies: Zunow Media Solutions (Ad Operation & Promotion Support), Zunow (bidding information platform "Nyusatsu-Oh"), and Fourglobe (LINE-based integrated marketing). Net sales are expanding steadily, driven by increasing inquiries for various services amid rising corporate demand for digitalization.

Recent Overview

Q1 posted a loss due to delays in FG's launch; monetization is expected from the second quarter onward

In Q1 FY2026 (ending December 2026), net sales increased to ¥424 million (up 44.8% year on year), driven by increased inquiries for various services. On the other hand, the launch of FG, which became a subsidiary in September 2025, including organizational changes to strengthen sales, took longer than expected, resulting in a deteriorated segment loss of ¥39 million (compared with a profit of ¥10 million in the same quarter of the prior year). The company has indicated a policy of building up profits from the second quarter onward. As a subsequent event, in April 2026 the company established a joint venture (CustIntCo Japan Corporation, with a 51% ownership stake) with Singapore-based CustIntCo Pte Ltd, aiming to expand into the domestic mental health care and healthcare markets using AI-based voice and facial image analysis technology.

Key Products

Growth Drivers

• Continued expansion of net sales driven by increased inquiries for various services (up 44.8% year on year)
• Full-scale operation of integrated marketing utilizing FG's LINE expertise (from the second quarter onward)
• New expansion into the mental health care and healthcare markets utilizing AI voice and facial image analysis technology through the establishment of CustIntCo Japan
• Enhanced value of data utilization and contribution to group marketing through the application of AI technology to Zunow's "Nyusatsu-Oh"
• Expansion of segment scale through an active M&A and incubation strategy under the Medium-Term Management Plan (2025-2027)
• Maximization of synergies by combining the assets of group companies

Risks

• Risk that subsidiaries could take longer than expected to become profitable, as demonstrated by the delay in FG's launch
• Impairment risk related to the unamortized goodwill balance of ¥535 million (as of end of March 2026)
• Uncertain timing of full-scale monetization for each company, as the segment is still in the upfront investment phase (Q1 segment loss was ¥39 million)
• Risk of increased additional investment and integration costs associated with the establishment of new joint ventures such as CustIntCo Japan
• High proportion of inter-segment internal sales, making independent growth of sales to external customers a challenge
• Risk of increased integration and management costs associated with the expansion of the scope of consolidation through M&A
• Risk of impairment to investment value if invested venture companies fail to achieve their business plans