gooddays holdings, Inc.

Business Details

The IT Segment, operated by Open Resource Corporation, consists of two pillars: the "Redx Business," which handles the introduction and maintenance of the proprietary cloud POS product "Redx," and the "User Connect Business," which provides system development, maintenance, and SE services for financial institutions and the retail/distribution industry. The segment is promoting a shift to a standardized service model, aiming to realize a marginal-profit-type business. Revenue from external customers for the full year ended March 2026 was ¥3,769 million, with segment profit of ¥402 million.

Recent Overview

Although revenue declined at the Redx Business due to prioritized investment, User Connect drove overall segment revenue and profit growth

For the full year ended March 2026, the IT Segment's revenue from external customers was ¥3,769 million (up 0.3% year on year), and segment profit was ¥402 million (up 14.8% year on year), achieving increased revenue and profit. At the Redx Business, as a result of prioritizing investment in the development and introduction of the department store standard, revenue was ¥1,275 million (down 10.1% year on year), while the company continued to build track record, including completing installations at Tobu Department Store and Depaato Riubou, and beginning operation of mobile ordering integration at Toranomon Arcea Tower. The User Connect Business continued to grow steadily, with revenue of ¥2,494 million (up 6.5% year on year), driven by solid performance in projects for financial institutions and the retail/distribution industry.

Key Products

Growth Drivers

• Horizontal expansion of Redx Cloud POS to department stores, specialty stores, and commercial facilities (spreading the department store standard through the business alliance with Isetan Mitsukoshi Systems Solutions, and securing new customer orders toward FY2027 (ending March 2027))
• Beginning expansion to the entire retail industry through the establishment of the "Department Store Standard Joint Center" platform (a key initiative for FY2027 (ending March 2027))
• Realization of a marginal-profit-type business through the shift to a standardized service model, along with reductions in introduction costs and lead times
• Capturing DX demand from commercial facilities through integration with the SaaS-based mobile ordering service (NEW PORT) (track record of operation at Toranomon Arcea Tower)
• Expansion of new solutions through AI-driven reductions in development costs and lead times, and by providing a platform for utilizing purchasing and customer data via Redx
• Expansion of orders at the User Connect Business, driven by growing corporate appetite for IT investment (demand for business process efficiency and DX promotion)

Risks

• Because the Redx Business is pursuing a policy of prioritizing standardization and investment, revenue may remain sluggish during the transition period (down 10.1% year on year in FY2026 (ending March 2026))
• Risk of revenue fluctuation at the User Connect Business due to the completion and settling of large-scale projects
• Risk of delays in establishing the management structure and securing personnel needed to promote standardization (difficulty in hiring amid labor shortages)
• Risk of customer attrition due to a mismatch between customers' needs for individualized service and the standardized service model
• High dependence on revenue from the department store industry, creating risk that structural changes in that industry (store closures, industry consolidation, etc.) could affect order intake