WingArc1st Inc.
4432・Prime Market・Information & Communication
Data Empowerment Business (WingArc1st Inc., single segment)
A domestic SaaS company supporting DX through two pillars: form/document management and data utilization
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (cumulative Q1) | ¥7,806 million | ¥7,314 million | ↑ |
| Operating profit (cumulative Q1) | ¥2,167 million | ¥2,097 million | ↑ |
| EBITDA (cumulative Q1) | ¥2,565 million | ¥2,467 million | ↑ |
| Quarterly profit attributable to owners of parent (cumulative Q1) | ¥1,559 million | ¥1,466 million | ↑ |
| Recurring revenue (cumulative Q1) | ¥5,509 million | ¥4,676 million | ↑ |
| Cloud revenue (cumulative Q1) | ¥1,999 million | ¥1,450 million | ↑ |
| Subscription revenue (cumulative Q1) | ¥580 million | ¥415 million | ↑ |
| License/Service revenue (cumulative Q1) | ¥2,297 million | ¥2,638 million | ↓ |
| Form and document management solutions revenue (cumulative Q1) | ¥5,033 million | ¥4,831 million | ↑ |
| Data empowerment solutions revenue (cumulative Q1) | ¥2,772 million | ¥2,482 million | ↑ |
| Cash flow from operating activities (cumulative Q1) | ¥4,085 million | ¥1,917 million | ↑ |
| Cash and cash equivalents (end of period) | ¥15,321 million | ¥13,340 million | ↑ |
| Full-year revenue forecast | ¥34,300 million | ¥30,945 million (FY2025 (ended February 2025) actual) | ↑ |
| Full-year operating profit forecast | ¥10,600 million | ¥8,989 million (FY2025 (ended February 2025) actual) | ↑ |
| Full-year EBITDA forecast | ¥12,100 million | ¥10,526 million (FY2025 (ended February 2025) actual) | ↑ |
| Basic quarterly earnings per share | ¥44.91 | ¥42.36 | ↑ |
Business Details
The Group operates the "Data Empowerment Business" as a single segment. Revenue is disclosed in two categories: form and document management solutions centered on "SVF," which boasts a 65.1% share of the forms market, and data empowerment solutions centered on the BI and data analytics platforms "Dr.Sum" and "MotionBoard." With large enterprises, government agencies, and municipalities as its main customers, the company achieves stable revenue growth through a recurring business model based on maintenance, cloud, and subscription services.
Recent Overview
Q1 revenue up 6.7%, recurring revenue up 17.8% for a solid start; share buyback also resolved
In the first quarter of FY2027 (ending February 2027) (March–May 2026), revenue was ¥7,806 million (up 6.7% year on year) and operating profit was ¥2,167 million (up 3.3% year on year), representing an increase in both revenue and profit. Recurring revenue maintained high growth at ¥5,509 million (up 17.8% year on year), driven in particular by cloud revenue (up 37.9%) and subscription revenue (up 39.6%). On the other hand, License/Service revenue declined 12.9% due to shifts in order timing and other factors. Operating cash flow improved significantly to ¥4,085 million compared to the same period last year. As a subsequent event, the Board of Directors resolved on July 14, 2026 to conduct a share buyback with an upper limit of 1,200,000 shares and ¥3.0 billion (buyback period: August 2026 to May 2027). There has been no revision to the full-year earnings forecast (revenue of ¥34,300 million, operating profit of ¥10,600 million).
Key Products
Growth Drivers
- Continued high growth in cloud services (cloud revenue in Q1 of FY2027 (ending February 2027) up 37.9% year on year to ¥1,999 million)
- Expansion of subscription contracts (up 39.6% year on year to ¥580 million), driven by a shift from ownership to usage centered on large enterprises
- Rapid expansion of Dr.Sum and SVF subscriptions due to the start of full-scale revenue recognition from the public sector solution "Govlong"
- Expanded services for municipalities through the consolidation of WingArc NEX Inc. (BDS "Other" up 81.5% year on year)
- Accelerated incorporation of AI functionality into products (dejiren AI, MCP compatibility for SVF Archiver, etc.), capturing demand for generative AI
- Construction of a digital trust infrastructure and deployment of globally standards-compliant trust services through collaboration with Cybertrust
- Solid growth in the corporate IT market (projected up 6.0% year on year in 2026) and high growth in the cloud market (projected up 20.4% year on year)
- Demand in the government and municipal sector for Government Cloud migration, information system standardization, and administrative service sophistication
Risks
- Declining trend in License/Service revenue (down 12.9% year on year to ¥2,297 million in Q1 of FY2027 (ending February 2027)), and risk of shifts in the timing of large-scale order receipt
- Cost pressure from rising personnel and outsourcing expenses (personnel expenses of ¥2,177 million, up 13.5% year on year; outsourcing expenses of ¥850 million, up 14.0% year on year) and their impact on operating margin
- Against the medium-term management targets (cloud ratio of 40%, recurring ratio of 75%, EBITDA of ¥12.0 billion, for FY2027 (ending February 2027)), a gap remains as of Q1, with cloud ratio at 25.6% and recurring ratio at 70.6%
- Risk of fluctuations in comprehensive income due to changes in the fair value of investment securities, etc. (a valuation loss of ¥1,258 million was recognized through OCI in the current first quarter)
- Risk of a slowdown in domestic IT investment due to geopolitical risks such as changes in trade policy in various countries, the economic slowdown in China, and the situation in the Middle East, as well as currency fluctuations
- Risk of a decline in the number of contracted companies due to the termination of some cloud services (termination of some services confirmed for the MotionBoard cloud)
- Reduction in cash on hand and impact on financial flexibility due to the share buyback (upper limit of ¥3.0 billion)
Last updated: May 25, 2026