Vario Secure Inc.
4494・Standard Market・Information & Communication
Vario Secure, Inc. (Single Segment)
A recurring revenue business providing one-stop network security services centered on a domestically developed, in-house device
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (IFRS) | ¥2,843 million | ¥2,668 million | ↑ |
| Operating profit (IFRS) | ¥562 million | ¥492 million | ↑ |
| Security BPO service revenue | ¥2,491 million | ¥2,345 million | ↑ |
| Integration service revenue | ¥352 million | ¥323 million | ↑ |
| Churn rate (value basis) | 0.72% | — | — |
Business Details
A single segment comprising the internet security services business. The company provides one-stop procurement, installation, monitoring, and operation/maintenance services centered on VSR, its own in-house developed network security appliance. Its primary customers are small and medium-sized enterprises, with sales conducted mainly indirectly through sales agents such as telecommunications carriers and ISPs. Through a monthly-billed recurring revenue model, the company has built up stable earnings, and as of the end of February 2026, it provides services to 7,651 sites across all 47 prefectures nationwide.
Recent Overview
Revenue increased 6.6% year on year and IFRS operating profit increased 14.1%, driven by price revisions, an increase in EDR licenses, and an increase in high-unit-price IS projects
For FY2026 (ending March 2026) (the 11th fiscal year), revenue was ¥2,843 million (up 6.6% year on year), and IFRS operating profit was ¥562 million (up 14.1% year on year). In the security BPO service, price revisions implemented for existing customers and sales agents, along with an increase in the number of Vario EDR licenses, contributed to results. In the integration service, an increase in high-unit-price IS projects contributed to results. On the other hand, VCR revenue declined due to intensifying competition. On the cost side, expenses increased due to increases in license fees, maintenance fees, and other costs. Both revenue and operating profit fell short of the initial plan for the period but exceeded the revised plan. In August 2025, the company began offering a new ransomware countermeasure package. Following its conversion into a wholly owned subsidiary of HEROZ, Inc., the company is promoting personnel recruitment and strengthening its management structure.
Key Products
Growth Drivers
- Accumulation of earnings through a stock-type recurring revenue model and maintenance of a low churn rate (0.72%)
- Expanding demand for security outsourcing amid the diversification and sophistication of cyberattacks
- Increase in unit prices through price revisions implemented for existing customers and sales agents
- Expansion in the endpoint security domain through an increase in the number of Vario EDR licenses
- A sales foundation covering all 47 prefectures nationwide, leveraging the sales agent network of telecommunications carriers, ISPs, and others
Risks
- Dependence on revenue from specific sales agents (USEN ICT Solutions 35.5%, SoftBank 20.7%, with the top two companies combined accounting for 56.2%)
- Risk of delayed response to changes in the technological environment, such as migration to cloud environments
- Profit pressure from rising license and maintenance fees stemming from soaring raw material and energy prices
- Sluggish sales of VCR (UTM devices) due to intensifying competition
- Risk of system failures and information leaks related to in-house developed devices and systems
Last updated: May 27, 2026