ENVALITH
株式会社ブロードバンドセキュリティ logo

BroadBand Security,Inc.

4398・Standard Market・Information & Communication

Official website
株式会社ブロードバンドセキュリティ logo
BroadBand Security,Inc.4398

Business

Broadband Security Corporation, founded in 1999 and listed on the Tokyo Stock Exchange in 2018, is a company specializing in cybersecurity. Centered on three service categories—Security Audit & Consulting Services, Vulnerability Assessment Service, and Information Leakage IT Countermeasure Service—the company provides end-to-end offerings ranging from upstream consulting to 24/7/365 SOC monitoring and operations. Its main customers are private-sector companies, primarily large corporations, and government agencies. The company holds multiple international certifications, including PCI DSS audit qualification (QSA) and PFI certification, and possesses a high level of expertise in the financial sector, including the credit card industry. While benefiting from a capital base as a group company of SBI Holdings, it is characterized by its ability to propose optimal solutions from an independent standpoint.

Business Model

The company conducts sales through two channels: direct sales and sales via agents (partners). Security Audit & Consulting Services and Vulnerability Assessment Service generate flow-type revenue, while security equipment managed services (G-SOC) and secure email services/EDR-MSS form stock-type recurring subscription revenue. Since FY2025 (ending June 2025), the company has been fully rolling out a comprehensive solution proposal-type sales strategy that starts from upstream consulting projects and aims to cross-sell into the Vulnerability Assessment Service and Information Leakage IT Countermeasure Service.

Company Strengths

Holds four qualifications: PCI DSS assessor (QSA), P2PE assessor (QSA P2PE), card data breach investigator (PFI), and card manufacturing security assessor (CPSA). This demonstrates advanced expertise in the financial and payment sectors, serving as a differentiating factor from competitors.

There are few independent specialized vendors in the market that can provide an end-to-end service lineup encompassing Security Audit & Consulting Services, Vulnerability Assessment Service, SOC monitoring and operations (G-SOC), EDR-MSS, and digital forensics. Order backlog for FY2025 (ended June 2025) reached ¥2,917,776 thousand, marking a record high.

As an independent company not constrained by manufacturer, research institute, or SIer affiliations, the company can propose optimal solutions to customers, including the latest products originating from the United States. Since November 2023, the company has accelerated service expansion through capital and business alliances with Global Security Expert, Kanematsu Electronics, ID Holdings, and Secureworks (SecuAvail).

ENVALITH's Perspective

For the nine months of the third quarter cumulative period of FY2026 (ending June 2026), net sales were ¥5,111 million (up 8.5% year-on-year), operating profit was ¥447 million (up 42.6% year-on-year), and quarterly net profit was ¥300 million (up 66.4% year-on-year), showing a substantial recovery. Against the full-year forecast (net sales of ¥7,100 million, operating profit of ¥700 million), the progress rate for the third-quarter cumulative period was 72.0% for net sales and 63.9% for operating profit; considering further accumulation in the fourth quarter, the likelihood of achieving the full-year forecast stands at a high level.

In FY2025 (ended June 2025), net sales were ¥6,104 million and operating profit was ¥258 million, representing a substantial year-on-year decline in both revenue and profit. However, in FY2026 (ending June 2026), the company entered a recovery trajectory driven by Security Audit & Consulting Services, supported by the penetration of a comprehensive solution proposal-based sales strategy. Gross profit margin improved from 30.4% in the same period of the previous year to 32.2%, confirming a qualitative improvement in the profit structure as well. As an external factor, the increase in ransomware incidents and the expansion of supply chain attacks have been boosting demand.

As of the end of March 2026, total assets were ¥4,084 million, net assets were ¥2,367 million, and the equity ratio was 58.0% (55.5% at the end of the previous fiscal year), indicating that financial soundness has been maintained. On the other hand, non-operating expenses for the third quarter cumulative period included foreign exchange losses of ¥12,842 thousand and compensation payment expenses of ¥13,949 thousand, and the foreign exchange fluctuation risk, an external factor, continues to warrant close attention. Long-term borrowings remain limited at ¥100,000 thousand, indicating low financial leverage risk.

Growth Strategy

Transition to comprehensive solution-proposal sales and expansion of stock-type revenue through G-MDR

Promoting a shift in sales strategy toward integrated proposals covering everything from audit and consulting through vulnerability assessment to monitoring operations. In the cumulative nine months of FY2026 (ending March 2026), sales of Security Audit & Consulting Services grew significantly, confirming that order intake is progressing smoothly.

Began offering G-MDR, a full outsourcing security operations service for cyber defense, as a new service. Inquiries from many companies across industries are increasing, and the number of companies deciding to adopt the service is also increasing, driving accumulation of stock-type revenue.

Continuing to strengthen the business foundation through capital alliances. While maintaining an independent position, the company aims to expand its service coverage and strengthen its customer base through collaboration with alliance partners.

Last updated: July 17, 2026