Smaregi, Inc.
4431・Growth Market・Information & Communication
Business
Smaregi Inc. offers the cloud-based POS system "Smaregi" as its core service for restaurants and retail stores, alongside multiple cloud services including the attendance management tool "Smaregi Timecard," the cashless payment service "Smaregi PAYGATE," and EC-related services. Its main customers span the retail, apparel, and food service industries, centering on mid-sized operators running anywhere from a single store to over 100 stores. As of the end of April 2025, the company boasted 42,016 stores registered on paid plans and cumulative transaction volume of ¥11,225,482 million, characterized by continuous user acquisition through a freemium model and a notably low churn rate (MRR churn rate of 0.48%). The company is also actively pursuing expansion into new industries and markets through CVC investments and business acquisitions.
Business Model
The company employs a freemium model in which the free "Standard Plan" serves as an entry point, guiding customers toward paid plans priced between ¥5,000 and ¥14,000 per month. Monthly usage fees and related revenue (FY2025 (ending April 2025): ¥7,425 million, up 43.0% year on year) form a stable subscription-based revenue base, while sales of equipment such as tablets and receipt printers (¥3,287 million in the same period) supplement initial revenue. Through cross-selling initiatives, the company continues to raise average revenue per customer, expanding ARR to ¥8,679 million as of the end of April 2025.
Company Strengths
The MRR churn rate (12-month average from May 2024 to April 2025) stood at an extremely low 0.48%. A system for rapidly feeding back on-site user needs to the development department, combined with the extensibility offered by the app marketplace, promotes continued usage and supports the stable accumulation of subscription revenue.
ARR expanded roughly 4.2-fold over four years, from ¥2,076 million in April 2021 to ¥8,679 million in April 2025. Against the FY2026 ARR target of ¥9,460 million set under the second mid-term management plan, the company achieved ¥10,434 million as of the end of January 2026, surpassing the target ahead of schedule.
For FY2025 (ending April 2025), gross profit was ¥6,761 million (gross profit margin of 61.1%), and operating profit was ¥2,375 million (operating profit margin of 21.5%). Supported by its SaaS-based business model, the company has maintained high profit margins while growing net sales approximately 2.6-fold over three years, from ¥4,297 million in FY2022 (ending April 2022) to ¥11,066 million in FY2025 (ending April 2025).
ENVALITH's Perspective
Performance Trend
In FY2026 (ending April 2026) consolidated results, revenue reached ¥13,345 million (+20.6% year on year), operating profit reached ¥3,216 million (+35.2%), and profit attributable to owners of parent reached ¥2,228 million (+35.5%), setting record highs across all metrics. The operating profit margin on revenue improved by 2.6 points to 24.1% (versus 21.5% in the prior period). Monthly usage fees and related revenue, at the equivalent of ¥10,090 million (+31.7%), drove overall growth, while equipment sales and related revenue declined to the equivalent of ¥2,823 million (-7.4%) due to the impact of the shift toward equipment subscriptions. On the external front, robust inbound demand and a gradual recovery in personal consumption supported business conditions in the food service and retail industries. Operating cash flow improved to ¥3,120 million (versus ¥2,465 million in the prior period), and period-end cash stood at ¥8,138 million, underscoring a solid financial foundation. The forecast for FY2027 (ending April 2027) calls for revenue of ¥15,387 million (+15.3%) and operating profit of ¥4,004 million (+24.5%).
Growth Strategy
Toward ARR of ¥30 billion (VISION2031), the company is advancing four pillars: customer base expansion, strengthening of payments/fintech, AI strategy, and capital allocation
Capturing demand arising from the reduction in consumption tax and labor-saving needs to expand the number of registered stores on paid plans. The shift to device subscriptions is progressing faster than initially forecast at the start of the fiscal year, aiming to raise the stock-revenue ratio and strengthen the medium- to long-term earnings base. The target for FY2027 (ending April 2027) is ARR of ¥14.2 billion (YoY +29.0%).
In addition to expanding cashless payment ARR (¥2,567 million at the end of April 2026, up 43.1% year-on-year) through integrated POS × payments offerings, the company is building new revenue models such as tax-free refunds and factoring through "Smaregi Shussebarai" (launched in March 2026), accelerating its expansion into the finance domain that supports growth investment for SMBs.
By establishing a company-wide AI promotion structure and creating advanced API and commercial transaction data utilization products, the company is developing new services that leverage accumulated POS data and payment records. Development of next-generation payment terminals is also proceeding in parallel, aiming to enhance product added value and differentiate from competitors.
As of May 1, 2026, the company absorbed its wholly owned subsidiary through a merger, integrating EC domain expertise with POS, payment, and customer management functions at the organizational level. This is expected to accelerate cross-selling, optimize the allocation of management resources, and enhance knowledge sharing through faster decision-making and stronger inter-departmental collaboration.
Based on capital discipline that targets an operating profit margin of around 20%, the company is prioritizing capital allocation to strategic M&A to accelerate growth. The year-end dividend forecast for FY2027 (ending April 2027) is ¥29.00 (versus ¥24.00 in the previous fiscal year), maintaining a policy of dividend increases while balancing shareholder returns with growth investment.
Last updated: July 17, 2026