AI CROSS Inc.

Business Details

Provides the platform "Zettai Reach! RCS," which delivers SMS and RCS messages to end users' mobile devices, to domestic and overseas operators primarily engaged in B2C business. The company is advancing a focus on highly profitable domestic customers and initiatives specialized for the financial and staffing industries, and is pursuing enhanced value-added and improved profitability by providing integrated solutions that combine messaging services with AI technology. The segment was separated and reorganized from the former "Smart AI Engagement Business" as of January 2026.

Recent Overview

Q1 revenue of ¥1,118 million, up 24.1% year on year, showing solid growth, though margin declined slightly

In Q1 FY2026 (ending December 2026) (January to March 2026), the Smart Messaging business recorded revenue of ¥1,118 million (up 24.1% year on year) and segment profit of ¥298 million (up 14.3% year on year). As profit growth lagged somewhat behind revenue growth, the segment profit margin declined from 29.0% in the same period of the prior year to 26.7%. As of January 2026, the AI Transformation business was separated from the former "Smart AI Engagement Business," resulting in the change to the current segment name. There has been no change to the full-year earnings forecast, and progress is regarded as generally in line with plan.

Key Products

Growth Drivers

• Continued expansion of the SMS market (forecast of 14,268 million SMS messages delivered in FY2030: Deloitte Tohmatsu Mic Research Institute)
• Continued high growth of related markets driven by RCS adoption and progress in MA integration
• Focus on highly profitable domestic customers and implementation of initiatives specialized for the financial and staffing industries
• Enhanced value-added through the provision of integrated solutions combining messaging services with AI technology
• Expansion of cross-selling through collaboration with the AI Transformation Business and the Marketing Solutions Business

Risks

• Risk that mobile carriers raise SMS delivery unit prices or discontinue contracts (a significant impact on business performance)
• Risk of falling behind in responding to the rapid evolution of AI-related technologies (amid active R&D competition among domestic and overseas companies)
• Risk of revenue concentration in a major customer (Jintech Corporation), accounting for 12.1% of consolidated revenue
• Risk of service disruption due to system failures or security incidents
• Risk of diminished competitive advantage due to delays in securing intellectual property rights