ENVALITH
株式会社サイバーセキュリティクラウド logo

Cyber Security Cloud , Inc.

4493・Growth Market・Information & Communication

Official website
株式会社サイバーセキュリティクラウド logo
Cyber Security Cloud , Inc.4493

Business

Cyber Security Cloud, Inc. operates under the corporate mission of "creating a cyber space that people around the world can use safely and securely." The company offers a diverse range of products, including the cloud-based WAF "Kogeki Shadan-kun," the public cloud WAF automated operation tool "WafCharm," the fully managed security service "CloudFastener," the vulnerability management tool "SIDfm," and the web privacy protection service "webtru." It supports the three major cloud platforms—AWS, Azure, and Google Cloud—and serves primarily corporate and organizational customers both in Japan and overseas. Since launching its Cybersecurity Business in 2013, the company has expanded its business scope, including through M&A, and currently operates under a single segment, the Cybersecurity Business.

Business Model

The company's core products all adopt a monthly-billed subscription model, expanding ARR by accumulating MRR from recurring subscription users. ARR for FY2025 (ending December 2025) reached ¥4,997,633 thousand (up 22.0% year on year). The gross profit margin remained at a high level of 65.6% (gross profit of ¥3,333,608 thousand ÷ net sales of ¥5,084,678 thousand), and the operating margin remained high at 21.7%. The structure is designed to maximize LTV by keeping the churn rate low.

Company Strengths

For FY2025 (ending December 2025), net sales were ¥5,084 million (up 31.8% year on year) and operating profit was ¥1,103 million (up 42.5% year on year). The operating margin stood at 21.7%, maintaining a level above 20% while continuing growth investment. Net sales expanded roughly 2.8-fold from FY2021 to FY2025.

Through its subscription-based model, the company achieved ARR of ¥4,997,633 thousand at the end of FY2025 (ending December 2025), up 22.0% year on year. The structure of accumulating monthly recurring fees from subscription users enhances revenue predictability, and maintaining a low churn rate contributes to maximizing LTV.

In February 2019, the company was certified as the seventh AWS WAF Managed Rules Seller in the world (via its U.S. subsidiary). It has strengthened global promotion, including exhibiting at AWS re:Invent for three consecutive years, and sales of WafCharm recorded a 136.39% year-on-year increase. The company holds a global expansion platform through the AWS Marketplace.

ENVALITH's Perspective

Cumulative net sales for the first quarter of FY2026 (ending December 2026) came to ¥1,393 million (up 17.5% year on year), and operating profit was ¥362 million (up 50.6% year on year), representing progress rates of 23.2% and 30.2%, respectively, against full-year guidance (net sales of ¥6,000 million and operating profit of ¥1,200 million), with progress on the profit side particularly favorable. The disappearance of foreign exchange losses (¥22,553 thousand) and share issuance costs (¥8,909 thousand) that occurred in the same period of the previous year also contributed to the substantial increase in ordinary profit (up 82.1% year on year), and an assessment of underlying performance excluding the fading of these one-off factors is warranted.

In terms of the market environment, the spread of generative AI has led to an increase in the frequency and complexity of cyberattacks, and the external tailwind of expanding demand for WAF and cloud security continues. On the other hand, the risk of intensifying competition with major domestic and overseas security vendors as well as emerging players is also rising, making it a focal point whether the ARR growth rate (up 16.2% year on year) can be sustained going forward. Continued verification is needed regarding the probability of achieving the mid-term management plan's target of ¥20.0 billion in net sales for FY2030 (ending December 2030), approximately four times the current level.

As of the end of the first quarter of FY2026 (ending December 2026), against total assets of ¥5,710 million, net assets stood at ¥4,641 million, and the equity ratio was 81.0% (improved from 75.6% at the end of the previous fiscal year), indicating a high degree of financial soundness. The company holds cash and deposits of ¥3,642 million, and with long-term borrowings outstanding of only ¥153 million, it is in a state that is essentially near debt-free. While there is sufficient capacity for growth investment in M&A, AI investment, and personnel recruitment, in May 2026 the company disposed of 40,000 treasury shares (total disposal amount of ¥66,200,000) as restricted stock compensation to three directors, and attention should also be paid to trends in stock compensation costs going forward.

Growth Strategy

Aiming for FY2030 (ending December 2030) revenue of ¥20.0 billion and operating profit of ¥4.0 billion through a combination of product expansion, AI investment, and M&A

Maintaining strong new order momentum for Kogeki Shadan-kun and WafCharm, ARR continues to grow steadily. ARR at the end of Q1 FY2026 (ending December 2026) reached ¥5,194,574 thousand, up 16.2% year-on-year, with stable accumulation continuing.

Newly launched optional services for CloudFastener to promote additional sales to existing customers. By strengthening the system to meet diverse customer needs, the company aims to increase customer unit price and reduce churn rate.

To promote generative AI development and utilization that balances speed and reliability, the company has established the "AI Trust Board," a dedicated organization for evaluating and judging the trustworthiness of generative AI. The company aims to improve operational efficiency and strengthen product competitiveness through AI utilization.

The company has set a quantitative target of achieving consolidated revenue of ¥20.0 billion and operating profit of ¥4.0 billion in FY2030 (ending December 2030), and is promoting a growth strategy combining product expansion, M&A, and human capital investment. The full-year forecast for FY2026 (ending December 2026) remains unchanged at revenue of ¥6,000 million and operating profit of ¥1,200 million.

Last updated: July 17, 2026