kubell Co., Ltd.

Business Details

Composed of two domains: the SaaS domain centered on the business chat tool "Chatwork," and the BPaaS domain that outsources business processes via the cloud. The primary target is small and medium-sized enterprises, which account for 99.7% of Japan's companies, supporting labor productivity improvement and DX promotion. Over 95% of revenue comes from a subscription-based recurring revenue model, providing a stable earnings base. In Q1 FY2026 (ending December 2026), revenue was ¥2,587 million (up 15.8% year on year) and operating profit was ¥280 million (up 268.3% year on year), continuing a significant improvement in profitability.

Recent Overview

Aggressive M&A activity and significant profitability improvement progressed simultaneously, achieving a turnaround to profit

In Q1 FY2026 (ending December 2026) (January to March), the company achieved significant profitability improvement with revenue of ¥2,587 million (up 15.8% year on year), operating profit of ¥280 million (up 268.3% year on year), and EBITDA of ¥468 million (up 63.8% year on year). Compared to a net loss of ¥29 million in the same quarter of the prior year, the company turned around to a net profit of ¥197 million. In terms of M&A, the company acquired the Paytner Invoice business from Paytner Corporation in February 2026, gaining Fintech capabilities, and in March 2026 resolved to make atena Inc. a wholly owned subsidiary, incorporating paper-based mail management functions. Chatwork's number of paid IDs expanded to 845 thousand (up 38 thousand year on year), with ARR growing to ¥7,322 million. There is no change to the full-year earnings forecast (revenue of ¥10,768 million or more, EBITDA of ¥1,500 million or more).

Key Products

Growth Drivers

• User expansion through Chatwork's PLG strategy: the number of paid IDs expanded to 845 thousand (up 38 thousand year on year), while ARR maintained and grew to ¥7,322 million
• Expansion of cross-selling in the BPaaS domain: cross-selling initiatives into BPaaS leveraging Chatwork's broad customer base have been successful, contributing to cost of sales efficiency (decreasing from ¥744 million to ¥705 million year on year) and improved gross margin
• M&A roll-up strategy: expanded BPaaS value proposition through the acquisition of the Paytner Invoice business (Fintech entry) and the resolution to make atena Inc. a wholly owned subsidiary (cloud mail)
• Stability of the recurring revenue model: the majority of revenue is subscription-based revenue (contract liability balance of ¥2,290 million), providing a stable, ARR-based earnings foundation
• Continued expansion of DX demand among small and medium-sized enterprises: maintaining Japan's No.1 position in the business chat market amid ongoing needs for labor productivity improvement and digitalization in the domestic SME market

Risks

• Risk of deviation from mid-term management plan targets: against the FY2026 (ending December 2026) revenue target of ¥15.0 billion, the full-year forecast remains at ¥10,768 million or more (+13% or more), requiring substantial upside to achieve the target
• Labor-intensive nature of the BPaaS business: labor and personnel costs are increasing as the business expands, making productivity improvement through AI and technology utilization key to maintaining profitability
• M&A and PMI risk: with an aggressive M&A strategy including the Paytner Invoice business acquisition and the full subsidiary conversion of atena, there is a risk of delays in post-acquisition organizational integration (PMI) or failure to achieve expected synergies
• Risk of intensifying competition: intensifying competition in the business chat market with major domestic and international players such as Microsoft Teams, Slack, and LINE WORKS
• Security risk: given its nature as infrastructure handling confidential information and personal data of numerous companies, cyberattack and information leakage risks are directly linked to business continuity