BroadBand Security,Inc.

Business Details

Broadband Security Inc. is an independent security specialist company that upholds the vision of "creating a convenient and safe network society," and operates three service categories: Security Audit & Consulting Services, Vulnerability Assessment Service, and Information Leakage IT Countermeasure Service. Its customers are primarily large private-sector companies and government agencies. The company holds PCI DSS audit qualification (QSA) as a corporate entity, and its strength lies in its ability to provide an integrated, one-stop service ranging from upstream consulting to 24/7/365 monitoring and operations. Sales are conducted through two channels: direct sales and sales via agents (partners).

Recent Overview

Cumulative nine-month results through Q3 show substantial earnings improvement, with net sales up 8.5% and operating profit up 42.6%

During the cumulative nine-month period of FY2026 (ending March 2026, July 2025 through March 2026), orders progressed steadily due to the success of the comprehensive solution-proposal-based sales strategy, and sales of the Security Audit & Consulting Services grew significantly. Inquiries for the new G-MDR service also increased across industries, expanding the number of companies adopting it. The company achieved net sales of ¥5,111 million (up 8.5% year on year), operating profit of ¥447 million (up 42.6%), and quarterly net profit of ¥300 million (up 66.4%). There has been no change to the full-year forecast (net sales of ¥7,100 million, operating profit of ¥700 million); as of the end of Q3, progress toward the full-year forecast stood at 72.0% for net sales and 63.9% for operating profit. An interim dividend of ¥8.00 has already been paid, and the full-year dividend forecast is ¥16.00 (up ¥1.00 year on year).

Key Products

Growth Drivers

• Continued expansion of the information security market driven by the increase in ransomware and the spread of supply chain attacks
• Expansion of public- and private-sector security investment driven by the government's "Active Cyber Defense" policy and the enforcement of the Economic Security Promotion Act
• Expansion of deal flow originating from audit and consulting services, and increased G-MDR adoption, driven by the shift to a comprehensive solution-proposal-based sales strategy
• Underlying demand growth from increased cyber risk associated with the advancement of DX, cloud utilization, and the spread of generative AI
• Accumulation of recurring (stock-type) revenue and expansion of the customer base through the G-MDR fully outsourced service

Risks

• Risk of prolonged deal closing due to the transition to comprehensive solution-proposal-based sales (there is a track record of delayed sales recognition occurring in the prior fiscal year)
• Constraints on service delivery capacity due to difficulty in securing and developing security personnel
• Risk of contract cancellation by existing customers in recurring (stock-type) services such as managed services
• Foreign exchange rate fluctuation risk (impact on the cost of procuring licenses for overseas security software: a foreign exchange loss of ¥12,842 thousand was recorded in the cumulative nine months through Q3)
• Risk of reputational decline, slowdown in new orders, and cancellation by existing customers in the event of a service outage