HENNGE K.K.
4475・Growth Market・Information & Communication
Business
HENNGE K.K. was founded in 1996 and is a SaaS company listed on the TSE Growth Market, with "Liberation of Technology" as its management philosophy. Its flagship service, HENNGE One, is a comprehensive cloud security platform that provides an integrated set of three functions for companies advancing cloud migration: single sign-on and access control (Identity), protection against email misdelivery and file-sharing management (DLP), and defense against targeted attacks (Cybersecurity). The company serves 3,427 client companies (as of the end of FY2025, ending September 2025) across a wide range of industries and sizes, including banks and local governments, with 2,799,960 contracted users, and has begun overseas expansion through its Taiwan subsidiary and its US joint venture, HENNGE Inc.
Business Model
HENNGE One adopts an annual subscription contract structure composed of the number of users × ARPU (annual unit price per user), with annual fees generally collected in a lump sum at the start of service. Under this structure, the prior period's contracts form the basis for the following period's revenue unless canceled, and as of the end of FY2025 (ending September 2025), ARR stood at ¥11,135 million, with the monthly churn rate remaining at a low 0.33%. Highly recurring revenue accounted for 99.2% (¥10,837 million) of net sales, forming a sound cash flow base that supports upfront investment.
Company Strengths
The average monthly churn rate for FY2025 (ended September 2025) was an extremely low 0.33% (down 0.21 percentage points year on year). Of net sales of ¥10,924 million, 99.2%, or ¥10,837 million, consisted of recurring revenue, and the structure whereby contracts accumulated in the prior period form the basis for revenue in the following period underpins stable growth.
ARR for FY2025 (ended September 2025) rose 27.2% from the end of the prior period to ¥11,135 million. The price revision and introduction of a new licensing structure in April 2024 pushed up ARPU, and the gross profit margin rose 2.4 percentage points year on year to 86.5%. Operating profit was ¥1,793 million (up 76.7% year on year), with profit growth significantly outpacing revenue growth.
Major customers in FY2025 (ended September 2025) were Otsuka Corporation at ¥1,754 million (16.1% of net sales) and SB C&S Corp. at ¥1,581 million (14.5%). Through collaboration with sales partners including these two companies, the company has built a multi-layered customer acquisition system covering regions beyond the greater Tokyo area. The number of contracted companies expanded to 3,427 (up 16.1% year on year).
ENVALITH's Perspective
Performance Trend
For the interim period of FY2026 (ending March 2026) (October 2025–March 2026), revenue was ¥6,129 million (up 17.7% year on year), operating profit was ¥1,268 million (up 13.3% year on year), and interim net income attributable to owners of the parent was ¥884 million (up 11.7% year on year). Gross profit margin improved to 86.8% from 86.0% in the same period of the previous year. The HENNGE One business drove growth, increasing 19.2% to ¥5,792 million, while Professional Services and Other Businesses declined slightly by 2.8% to ¥337 million. Revenue growth over the past five periods has generally ranged in the mid-teens to 30% range, and the most recent interim growth of +17.7% represents a deceleration from +33.6% in the same period of the previous year; however, leading indicators such as 14.7% ARR growth and improved churn rates remain favorable. In terms of the external environment, continued DX investment by domestic companies is underpinning demand.
Growth Strategy
Centered on ARR maximization, growth is driven by a three-pronged approach: expanding domestic contracts, improving ARPU, and overseas expansion
Expanding the number of contracted companies through utilization of the sales partner network and strengthened direct sales. Achieved 3,731 companies and 2,964,065 users as of the interim period-end of FY2026 (ending September 2026) (up +17.2% and +11.9% year-on-year, respectively). Building up ARR while maintaining both a low churn rate of 0.26% and new customer acquisition.
Through the new license structure introduced in April 2024 (following rebranding), the company aims to promote migration of existing customers to higher-tier plans and acquire new customers at higher unit prices. The year-on-year ARR growth rate of 14.7% exceeds the user growth rate of 11.9%, confirming the effect of rising unit prices.
Began expansion into the North American market through the U.S. joint venture established in April 2025. During the current interim period, a loss attributable to non-controlling interests of ¥77 million was recorded, indicating the company is in an upfront investment phase. The timing and scale of revenue contribution remain undetermined, and future progress disclosures will be closely watched.
On May 1, 2026, the 8th series of stock acquisition rights (3,232 units, covering 323,200 shares, exercise price ¥964) were allotted to 339 employees. The aim is to secure and retain excellent talent with a view to long-term business growth and enhancement of corporate value.
Last updated: July 17, 2026