Cyber Security Cloud , Inc.

Business Details

Guided by the corporate mission of "creating a cyberspace that people around the world can use safely and securely," the company provides the cloud-based WAF "Kogeki Shadan-kun," the public cloud WAF automated operation tool "WafCharm," the fully managed security service "CloudFastener," and other offerings on a subscription basis. It supports the three major cloud platforms—AWS, Azure, and Google Cloud—and serves domestic and international corporate and organizational customers. Under its medium-term management plan (2026–2030), the company has set quantitative targets of consolidated net sales of ¥20.0 billion and operating profit of ¥4.0 billion for FY2030 (ending December 2030).

Recent Overview

Q1 FY2026 net sales +17.5%, operating profit +50.6%, with significant profit growth; ARR also up 16.2% YoY

In Q1 of FY2026 (ending December 2026) (January–March 2026), the company achieved substantial profit growth, with net sales of ¥1,393 million (+17.5% YoY), operating profit of ¥362 million (+50.6% YoY), and ordinary profit of ¥382 million (+82.1% YoY). The disappearance of the ¥22 million foreign exchange loss and ¥9 million stock issuance costs recorded in the same period of the prior year contributed to the significant improvement in ordinary profit. ARR continued to accumulate, reaching ¥5,194 million (+16.2% YoY). The company established the "AI Trust Board," a specialized organization for evaluating and assessing the trustworthiness of generative AI, and also launched a new optional service for CloudFastener. The full-year earnings forecast (net sales of ¥6,000 million, operating profit of ¥1,200 million) remains unchanged. As a subsequent event, the company plans to dispose of restricted stock compensation (40,000 shares, total disposal value of ¥66 million) to three directors on May 21, 2026.

Key Products

Growth Drivers

• Expanding demand driven by the increase and growing complexity of cyberattacks accompanying the spread of generative AI
• Continued ARR growth for Kogeki Shadan-kun and WafCharm (Q1 2026 ARR up 16.2% YoY)
• Promotion of cross-sell and upsell through the new optional service offering for CloudFastener
• Stable ARR accumulation through the subscription-based model
• Strengthening of business foundations based on the medium-term management plan (2026–2030) (targeting net sales of ¥20.0 billion and operating profit of ¥4.0 billion for FY2030 ending December 2030)
• Acquisition of a wide range of domestic and international customers through support for AWS, Azure, and Google Cloud
• Business domain expansion through the M&A of DataSign Inc. (webtru) and Generative Technology Co., Ltd.

Risks

• Continued increase in technical response costs due to the increasing sophistication and diversification of cyberattack methods
• Intensifying competition with competitors, particularly major overseas security vendors
• Difficulty in securing and developing excellent talent, particularly engineers
• Integration risks associated with the M&A strategy and goodwill amortization burden (goodwill balance of ¥425 million at end of Q1 2026)
• Foreign exchange fluctuation risk in overseas expansion and competition with global competitors
• Costs of addressing new security risks arising from the use of generative AI