NE Inc.
441A・Growth Market・Information & Communication
NE Inc.
441A・Growth Market・Information & Communication
NE Inc. (Consolidated)
An EC support platform company operating three businesses: SaaS, consulting, and regional revitalization for EC operators
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (Full Year) | ¥4,068 million | ¥3,925 million | ↑ |
| Operating Income (Full Year) | ¥1,461 million | ¥1,518 million | ↓ |
| Ordinary Income (Full Year) | ¥1,444 million | ¥1,525 million | ↓ |
| Net Income (Full Year) | ¥1,008 million | ¥940 million | ↑ |
| Operating Margin | 35.9% | 38.7% | ↓ |
| Next Engine Total Contracted Companies (Period-End) | 6,764 companies | 6,570 companies | ↑ |
| Next Engine Annual Average ARPU | ¥39,061 | ¥38,363 (reference) | ↑ |
| Equity Ratio | 89.3% | 83.3% | ↑ |
| Net Income per Share | ¥31.03 | ¥29.38 | ↑ |
| Cash and Cash Equivalents (Period-End Balance) | ¥3,632 million | ¥2,597 million | ↑ |
| Cash Flow from Operating Activities | ¥1,176 million | ¥1,026 million | ↑ |
Business Details
NE Inc. operates under the purpose "Ignite Passion for Commerce," with its core business being the cloud-based unified management system for EC operators, "Next Engine" (SaaS), alongside three segments: the EC Consulting business, and the Localco business, which provides Furusato Nozei (hometown tax) support and traditional crafts EC sales for local governments. The company listed on the Tokyo Stock Exchange Growth Market in November 2025. For FY2026 (ending April 2026) (4th fiscal period), net sales were ¥4,068 million (up 3.6% year-on-year), and net income was ¥1,008 million (up 7.3% year-on-year). Note that the Furusato Nozei support business is scheduled for business transfer in August 2026.
Recent Overview
Sales and net income increased while operating income declined; resolution to transfer the Furusato Nozei support business
In FY2026 (ending April 2026), the company achieved increased sales of ¥4,068 million (up 3.6% year-on-year), but operating income declined to ¥1,461 million (down 3.7% year-on-year) due to an increase in SG&A expenses (¥1,499 million, up 16.8% year-on-year) and the recording of ¥23 million in listing-related expenses. Net income increased to ¥1,008 million (up 7.3% year-on-year), partly due to the impact of income tax adjustments. The consulting business saw substantial sales growth to ¥548 million (up 46.9% year-on-year), driven by strong performance of generative AI online video courses. Meanwhile, the Localco business fell into a segment loss of ¥17 million with sales of ¥375 million (down 35.4% year-on-year), impacted by the Furusato Nozei system changes. At the Board of Directors meeting on June 12, 2026, the company resolved to transfer the Furusato Nozei support business (sales of ¥281 million) to Cyber Record Co., Ltd. for ¥220 million (scheduled for August 1, 2026). The earnings forecast for FY2027 (ending April 2027) is net sales of ¥4,630 million (up 13.8% year-on-year), operating income of ¥1,190 million (down 18.6% year-on-year), and net income of ¥1,011 million (up 0.3% year-on-year).
Key Products
Growth Drivers
- Continued expansion of the BtoC-EC market (Japan's domestic BtoC-EC market size in 2024 was ¥26.1 trillion, up 5.1% year-on-year)
- ARPU improvement measures for Next Engine (expansion of Order Made contracted development, enhanced customer convenience through feature enhancements)
- Expansion of educational product sales, including generative AI online video courses, in the consulting business
- Growth in both contracted companies and ARPU toward the Next Engine business's FY2027 (ending April 2027) sales plan of ¥3,824 million (up 21.6% year-on-year)
- Contribution of the ¥220 million gain on transfer (extraordinary income) from the Furusato Nozei support business to FY2027 (ending April 2027) results
- Sales channel expansion for the traditional crafts EC retail business by capturing inbound demand (FY2027 (ending April 2027) sales plan of ¥213 million)
- Securing financial flexibility through overdraft agreements (credit limit of ¥2,000 million) with four transaction banks
Risks
- Risk of earnings volatility in the Localco business due to Furusato Nozei system changes (such as point system abolition), which will be mitigated after the business transfer
- Risk of increased churn rate due to withdrawal of small-scale EC operators amid growing bipolarization in the EC market
- Risk of sluggish ARPU growth due to stagnant consumer behavior against a backdrop of geopolitical risk and price inflation (impact becoming apparent during the year-end shopping season)
- Uncertainty in acquiring new contracts in the consulting business due to reliance on external resources
- Risk of declining operating margin due to the increasing trend in SG&A expenses (up 16.8% year-on-year)
- Reduction in sales scale (approximately 6.9% of total sales) following the completion of the Furusato Nozei support business transfer, and operational risk during the transition period
- Risk of increased costs from new business development (continued R&D following the suspension of the encer mall beta version) and more aggressive growth investment
- Risk of increased system investment burden for cybersecurity measures and ISMS certification acquisition, among others