HENNGE K.K.

Business Details

Guided by the corporate philosophy of "Liberation of Technology," the company's core offering is HENNGE One, a SaaS that provides integrated access control, information leakage prevention, and cybersecurity for companies adopting cloud services. It has built a stable revenue base through a subscription-based recurring revenue model. For the six months ended March 2026 (H1 FY2026, ending September 2026), net sales were ¥6,129 million (up 17.7% year on year), and operating profit was ¥1,268 million (up 13.3% year on year). Gross margin remained at a high level of 86.8%.

Recent Overview

ARR up 14.7% and churn rate at 0.26%, reflecting steady customer base expansion; ¥913 million in treasury share buybacks executed

For H1 FY2026 (ending September 2026), net sales were ¥6,129 million (up 17.7% year on year) and operating profit was ¥1,268 million (up 13.3% year on year), representing increases in both revenue and profit. ARR for the HENNGE One business expanded to ¥11,904 million (up 14.7% year on year), the number of contracted companies rose to 3,731 (up 549 companies year on year), and the monthly churn rate improved significantly to 0.26%, down from 0.45% in the prior-year period. On the financial side, the company acquired 700,000 treasury shares (¥913 million). The full-year earnings forecast remains unchanged from the figures announced on November 7, 2025. As a subsequent event, the 8th series of stock acquisition rights (323,200 shares, exercise price ¥964) was allotted to 339 employees, completed on May 1, 2026.

Key Products

Growth Drivers

• Acceleration of new customer acquisition and promotion of upgrades among existing customers to higher-tier plans through the rebranding of HENNGE One and the new licensing structure (effective April 2024)
• Accumulation of ARR through rising average revenue per user (ARPU) and maintenance of a low churn rate (0.26%)
• Expansion of the number of contracted companies through strengthened collaboration with sales partners (Otsuka Corporation, SB C&S, etc.) and a multi-layered customer approach
• Favorable market tailwinds driven by growing corporate demand for DX promotion and cloud migration, as well as rising awareness of cybersecurity
• Expansion of regional coverage through the establishment of the U.S. joint venture HENNGE Inc. in April 2025

Risks

• Constraints on strengthening development capabilities due to a shortage of IT engineers (sales personnel hiring fell short of the initial-period target)
• Increased HENNGE One infrastructure costs due to foreign exchange fluctuations and security enhancements
• Risk of intensifying price competition due to new market entrants and new service offerings from competitors
• Uncertainty regarding market development in overseas expansion (U.S. and Asia)
• Risk of delayed response to rapid technological innovation such as AI technology