infoNet inc.

Business Details

The sole segment operated by InfoNet Corporation. Centered on its proprietary CMS products "infoCMS" and "LENSAhub", the company provides comprehensive web corporate communication support built around web contracted development and SaaS services. This includes AI search "Cogmo Search" and AI chatbot "Cogmo Attend" from subsidiary iAct, offering one-stop support for marketing DX and operational efficiency DX. Revenue is composed of four categories: contracted development services, monthly usage fee services, AI services, and SES, etc.

Recent Overview

Recorded impairment loss of ¥59 million, resulting in a net loss for the year; large profit growth expected in the following fiscal year

In FY2026 (ending March 2026), net sales increased to ¥2,085 million (up 3.7% year on year), but due to delays in the progress of the business plan for goodwill and customer-related assets of subsidiary Brand Design, an impairment loss of ¥59 million was recorded as an extraordinary loss. Operating profit fell to ¥55 million (down 67.4% year on year), and the bottom line turned to a net loss of ¥26 million. The company also relocated its head office, acquired treasury stock, and introduced a shareholder benefit program. As a subsequent event, the company resolved to transition to a holding company structure via a corporate split (absorption-type split), effective October 1, 2026. For FY2027 (ending March 2027), the company forecasts net sales of ¥2,239 million (up 7.4%) and operating profit of ¥137 million (up 150.8%).

Key Products

Growth Drivers

• Growing importance of websites in the domestic CMS market and expanding demand for web marketing
• Steady corporate DX investment demand and rapid expansion of practical generative AI utilization
• Accelerating growth in AI services (Cogmo Search and Cogmo Attend): FY2026 (ending March 2026) revenue of ¥355 million (up 42.4% year on year)
• Expansion of SaaS business and strengthened service integration using next-generation CMS "LENSAhub"
• Strengthened group management strategy promotion functions and establishment of autonomous decision-making structures for each business through transition to a holding company structure
• Accelerated growth and optimized business portfolio through M&A and alliances

Risks

• Deterioration in profitability due to increased costs (cost of sales ¥1,260 million, SG&A expenses ¥770 million): operating profit margin declined to 2.6% in FY2026 (ending March 2026)
• Amortization burden and impairment risk related to goodwill and customer-related assets arising from M&A: an impairment loss of ¥59 million was recorded in FY2026 (ending March 2026)
• Fluctuation in revenue base due to decline in monthly usage fee services revenue (¥778 million, down 8.2% from ¥847 million in the prior period)
• Decline in financial flexibility due to decrease in cash and cash equivalents (¥367 million at period end, down 37.3% from ¥585 million at prior period end) and new procurement of ¥100 million in short-term borrowings
• Uncertainty in performance due to changes in the standalone earnings structure following the transition to a holding company structure (shift toward dividend income and management guidance fees from group companies)
• Impact on the business environment from intensifying competition with open-source CMS and geopolitical risks such as the situation in the Middle East and US tariff policy