sinops Inc.
4428・Growth Market・Information & Communication
Business
Synops Inc. operates under the vision of "reducing waste worldwide by 10%," providing the "sinops series" of AI demand forecasting and automated ordering services for the three tiers of distribution: retail, wholesale, and manufacturing. Its flagship "sinops-CLOUD" is deployed primarily among food supermarkets, offered as a cloud-based service that enables automated ordering across diverse categories such as prepared foods, daily delivered items, and fresh produce, usable from as little as one function, one category, or one store. The company holds a 36.7% share of the food supermarket market and has ranked No. 1 in market share for three consecutive years in the food loss reduction solutions market according to a survey by Fuji Keizai Group. In 2023, the company launched "DeCM-PF (DCM Platform)" jointly with ITOCHU Corporation to connect the entire supply chain, positioning the end-to-end construction of demand chain management across all three tiers of distribution as a pillar of its management strategy.
Business Model
Of the ¥2,041 million in net sales, stock-type sales—comprising cloud sales of ¥1,112 million (54.5%) and support sales of ¥400 million (19.6%)—totaled ¥1,511 million (74.1%), forming a stable revenue base. The cloud service can be adopted starting from a single function, single category, or single store, and unit prices are expanded through upselling and cross-selling to existing users. By making the Implementation Support Service mandatory, the effectiveness of implementation is ensured, contributing to the maintenance of the continued usage rate.
Company Strengths
According to Fuji Keizai's "Industry-Specific IT Investment Trends / DX Market Outlook 2026 Edition," the company has achieved the No.1 market share for three consecutive years since the survey began in FY2022 in the food loss reduction solutions market for demand forecasting and automated ordering tools. The share for food supermarkets remains at a high level of 36.7%, and ARR has reached ¥1,587 million (up 18.8% year on year).
Stock-type revenue, combining cloud revenue of ¥1,112 million and support revenue of ¥400 million, totaled ¥1,511 million (up 16.6% year on year), accounting for 74.1% of total revenue. Monthly subscription-based cloud services are driving growth, with 3,363 paid stores and 13,278 paid accounts secured. This results in a business structure with high revenue visibility and stability.
The company's solution supports demand forecasting and automated ordering for daily delivery food products, which have short shelf lives and volatile pricing, as well as for prepared foods (delicatessen) and meat categories that require consideration of cannibalization effects. It holds AI functionality based on the expert method and a patent (obtained in 2021) for "demand forecasting and automated ordering logic for prepared meals and delicatessen," differentiating itself in a technical domain where competitor entry is limited.
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive periods, from ¥1,202 million in FY2021 to ¥2,041 million in FY2025. In FY2025, operating profit sharply recovered to ¥309 million, roughly double the previous period. However, in the cumulative first quarter of FY2026 (ending December 2026), while revenue was maintained with growth to ¥483 million (up 6.5% year on year), cost of sales rose 15.6% due to an increase in manufacturing department headcount and communication costs associated with cloud expansion, and SG&A expenses rose 3.8% due to higher outsourcing costs, causing operating profit to deteriorate sharply to ¥26 million (down 39.4% year on year). Ordinary profit came to only ¥42 million (down 5.7% year on year), supported by ¥16 million in non-operating income including subsidy income from the Ministry of Economy, Trade and Industry and foreign exchange gains. The full-year forecast remains unchanged, with the focus on profit recovery in the second half.
Growth Strategy
Deepening core SaaS penetration and cultivating DeCM-PF and WLMS to establish infrastructure across the three-tier distribution structure
Grow ARR continuously by proposing additional features and expanding store counts across the existing 121 companies and 3,317 stores. In the cumulative first quarter of FY2026 (ending December 2026), cloud revenue increased 21.9% year on year, serving as a key growth driver, while the number of paid accounts also expanded to 13,496, up 1,083 accounts year on year.
Expand profitability of "DeCM-PF (DCM Platform)," jointly provided with ITOCHU Corporation, while leveraging the Ministry of Economy, Trade and Industry's subsidy program "Demonstration Project for Logistics Efficiency Supporting Sustainable Logistics" to promote phased functional expansion aimed at optimizing manufacturer logistics. Subsidy income of ¥10 million was recorded in the first quarter of FY2026 (ending December 2026).
For the sinops-WLMS series, aimed at improving labor productivity in the retail industry, continue proposals and demonstration trials with existing and new users, cultivating it as a new profit pillar over the medium to long term. External factors such as rising labor costs and tightening labor supply-demand conditions serve as tailwinds, but full-scale profit contribution remains a medium- to long-term challenge.
Last updated: July 17, 2026