Kudan Inc.

Business Details

Under the vision of "Eyes for All Machines," the company conducts research and development, licensing, and solutions deployment for "Spatial Perception" technology based on its proprietary SLAM technology. It spans three areas—DX solutions centered on Kudan PRISM for digital twins, an Autonomous Mobility Software Platform for Robots, and Data Technology for Physical AI—and provides these to a broad range of industries including logistics, manufacturing, construction, and infrastructure.

Recent Overview

Net sales expanded sharply, up 131.3% year on year to ¥1,197 million, while operating loss narrowed significantly

For the full year of FY2026 (ending March 2026), the company achieved net sales of ¥1,197 million (up 131.3% year on year), driven by diversified sales growth for digital twin and robot applications. As a result of fixed cost reduction measures, SG&A expenses were reduced to ¥957 million (down 16.1% year on year). Foreign exchange gains of ¥354 million (versus ¥22 million in the prior period) contributed to a significant narrowing of the ordinary loss (-¥174 million, versus -¥743 million in the prior period). On the other hand, cost of sales increased sharply to ¥826 million (versus ¥177 million in the prior period), and gross margin declined to 31.0% (versus 65.8% in the prior period). Operating cash flow improved to -¥632 million (versus -¥815 million in the prior period). For FY2027 (ending March 2027), the company plans net sales of ¥1,030 million (down 13.9% year on year) and an operating loss of -¥340 million. There is no note regarding going concern assumptions.

Key Products

Growth Drivers

• Expanding demand for HW/SW packages for digital twins and robots amid accelerating public and private investment as the Physical AI market takes off in earnest
• Full-scale rollout of DX solutions for digital twins centered on Kudan PRISM (facility management, infrastructure inspection, disaster response, etc.)
• Improvement in the profit structure through continued results from fixed cost reduction measures (achieved a 16.1% year-on-year reduction in SG&A expenses)
• Advancing development and business collaboration for the Autonomous Mobility Software Platform for Robots through government-related projects and similar initiatives
• Improved profitability through a strategy focused on high-margin software (plans to further narrow operating loss to -¥340 million in FY2027, ending March 2027)
• Expansion of customer base through deployment in the new area of Data Technology for Physical AI (digital twin x robotics)

Risks

• Cash consumption due to continued operating losses (full-year operating loss of ¥586 million, cash balance of ¥1,986 million)
• Plans for a 13.9% year-on-year decline in net sales (¥1,030 million) in FY2027 (ending March 2027), presenting a risk of temporary retreat from the revenue expansion phase
• Foreign exchange fluctuation risk (foreign exchange gains of ¥354 million made a significant contribution to narrowing the ordinary loss in the current period, presenting a high risk of earnings deterioration if the yen appreciates)
• Sharp increase in cost of sales (¥826 million, up 366% year on year) leading to a significant decline in gross margin (from 65.8% to 31.0%) and instability in the profit structure
• Non-disclosure of ordinary income and net income forecasts due to the difficulty of estimating foreign exchange gains/losses, constraining transparency of earnings
• Risk of impairment of fixed assets (an impairment loss of ¥12 million was also recorded in the current period)
• Risk of dependence on sales to specific customers and uncertainty regarding the development and delivery status of solution projects