Global Security Experts Inc.

Business Details

Global Security Expert operates under the concept of a "Cybersecurity Education Company," providing services across five areas: consulting, vulnerability assessment, security solutions, education, and human resources, as a single-segment company. Its main customers are quasi-major, mid-tier, and small-to-medium enterprises as well as government agencies. Against a backdrop of DX promotion, increasing AI-driven cyberattacks, and rising attacks on critical infrastructure, the company is capturing robust demand from mid-tier and small-to-medium enterprises that lag behind in security measures, driving growth across all services. In FY2026 (ending March 2026), the company achieved sales of ¥11,022 million and an operating margin of 20.3%, setting new record highs for both sales and profit.

Recent Overview

In FY2026 (ending March 2026), growth across all services drove sales and profit to new record highs

In FY2026 (ending March 2026), the company posted sales of ¥11,022 million (up 25.2% year on year), operating profit of ¥2,238 million (up 38.6%), and profit attributable to owners of parent of ¥1,486 million (up 47.2%), setting record highs across all metrics. Although personnel expenses increased due to a rise in employee headcount, the effect of substantial sales growth outweighed this, improving the operating margin to 20.3%. On the other hand, the company recorded an impairment loss on investment securities of ¥2 million due to a revaluation of unlisted shares, as well as a loss on changes in equity of ¥10 million associated with a new share issuance by an equity-method affiliate, both booked as extraordinary losses. In June 2025, the company carried out a stock split (1 share to 2 shares). For FY2027 (ending March 2027), the company forecasts sales of ¥13,778 million (up 25.0%) and operating profit of ¥2,939 million (up 31.3%).

Key Products

Growth Drivers

• Expansion of corporate security investment driven by the sophistication and increasing complexity of AI-driven cyberattacks and rising attacks on critical infrastructure such as electricity, logistics, telecommunications, finance, and healthcare
• Growing security risks and expanding security demand accompanying the rising momentum behind DX promotion and AI adoption in business
• Policy tailwinds including the government's publication of a cybersecurity industry promotion strategy and the enactment of legislation on active cyber defense
• A surge in demand for security measures from quasi-major, mid-tier, and small-to-medium enterprises driven by supply chain risk mitigation requirements
• Rapid growth of the SES (Security Human Resources Business) driven by the shortage of security personnel
• A dramatic increase in demand for security education driven by the growing need for "Plus Security"
• Improved retention rates and increased spend per customer among existing clients through upselling and cross-selling initiatives

Risks

• Shortage of human resources amid business expansion due to difficulties in hiring and training security personnel
• Continued recognition of investment losses under the equity method due to weak performance at an equity-method affiliate (a loss of ¥1 million was recorded under the equity method in FY2026 as well)
• Risk of revenue concentration among key customers
• Intensifying competition in a market environment where overseas-made cybersecurity products and services hold an advantage
• Risk of revaluation of unlisted shares (an impairment loss on investment securities of ¥2 million was recorded in FY2026)
• Risk of recording losses on changes in equity interest associated with new share issuances, etc. at equity-method affiliates (¥10 million was recorded in FY2026)
• Loss of opportunity in regional markets due to delays in expanding business areas outside of Tokyo
• Pressure on operating cash flow due to expanding working capital associated with increases in prepaid expenses, accounts receivable, and contract assets