Smaregi, Inc.

Business Details

The Cloud Service Business provides the cloud-based POS system 'Smaregi' for restaurants and retail stores as its core offering, alongside attendance management service 'Smaregi Timecard,' cashless payment services, and EC-related services. The business is composed of subscription revenue (monthly usage fees, etc.) based on a freemium model, along with flow revenue from equipment sales, etc. Consolidated net sales for FY2026 (ending April 2026) reached ¥13,345 million (up 20.6% year on year), and ARR reached ¥11,055 million, achieving the target of the Second Medium-Term Management Plan ahead of schedule while continuing to perform steadily thereafter.

Recent Overview

In FY2026 (ending April 2026), both net sales and operating income reached record highs, with ARR reaching ¥11,055 million

Consolidated net sales for FY2026 (May 2025 to April 2026) were ¥13,345 million (up 20.6% year on year), and operating income was ¥3,216 million (up 35.2% year on year), representing a substantial increase in profit. Monthly usage fees, etc. drove overall growth, reaching ¥10,089 million (up 31.7% year on year), while net sales from equipment sales, etc. declined to ¥2,822 million (down 7.4% year on year) due to the strategic shift toward equipment subscriptions. ARR reached ¥11,055 million, achieving the Second Medium-Term Management Plan target ahead of schedule. In March 2026, the financial service 'Smaregi Shussebarai' was launched. As of May 1, 2026, Net Shop Support Room Co., Ltd. was absorbed through merger, integrating EC domain expertise with POS and payment functions at the organizational level. The earnings forecast for FY2027 (ending April 2027) is net sales of ¥15,387 million (up 15.3% year on year) and operating income of ¥4,004 million (up 24.5% year on year).

Key Products

Growth Drivers

• Continued expansion of monthly usage fees, etc.: Through cross-selling initiatives and the shift toward equipment subscriptions, monthly usage fees, etc. in FY2026 (ending April 2026) continued to grow strongly at +31.7% year on year, further increasing the proportion of recurring revenue
• Accelerating ARR growth: ARR as of the end of April 2026 reached ¥11,055 million, achieving the Second Medium-Term Management Plan target ahead of schedule. The Third Medium-Term Management Plan sets a target of ¥30 billion in ARR (VISION2031), with a target of ¥14.2 billion (up 29.0% year on year) for FY2027 (ending April 2027)
• Expansion of cashless payment ARR through integrated POS and payment offerings: Cashless payment ARR as of the end of April 2026 reached ¥2,567 million (up 43.1% year on year), recording the highest growth rate
• Increase in the number of stores registered on paid plans: Reached 48,297 stores as of the end of April 2026 (an increase of 6,281 stores year on year), continuing steady expansion
• New entry into the finance domain: The 'Smaregi Shussebarai' service launched in March 2026 established a new revenue model utilizing POS data and payment history
• Strengthened omnichannel capabilities through the absorption-type merger of Net Shop Support Room: Completion of the merger as of May 1, 2026 established a framework for seamlessly supporting both physical stores and EC, accelerating cross-selling and optimal allocation of management resources
• Capturing inbound demand: Robust inbound demand is driving the spread of cashless payments, promoting the development of new revenue models such as duty-free refunds
• Advancement of AI strategy: Establishment of a company-wide AI promotion framework and creation of products leveraging advanced APIs and commercial transaction data to enhance added value

Risks

• Risk of intensifying competition: Multiple competitors exist in the domestic POS market, and the rapid pace of technological development could intensify competition
• Risk of declining revenue from equipment sales, etc.: Due to the strategic shift toward equipment subscriptions, outright hardware sales have been suppressed, causing net sales from equipment sales, etc. in FY2026 (ending April 2026) to decline 7.4% year on year to ¥2,822 million
• Risk of securing engineers: Chronic shortages of IT personnel could make it difficult to secure the technical talent necessary for service development and stable operations
• Macroeconomic risk: Rising prices and labor shortages could worsen the business environment for the restaurant and retail industries, which are the company's primary users, affecting new adoptions and contract continuations
• PMI integration risk: Risk of delays in organizational and system integration or unexpected costs arising from the absorption-type merger of Net Shop Support Room (completed May 1, 2026)
• New business risk: Risks related to credit management and regulatory compliance associated with entry into the finance domain, such as 'Smaregi Shussebarai'
• Risk of increased costs associated with growth investment: Strategic M&A and organizational expansion in pursuit of the Third Medium-Term Management Plan could increase selling, general and administrative expenses and pressure profit margins (SG&A expenses in FY2026 (ending April 2026) were ¥5,556 million, up 26.8% year on year)