i Cubed Systems, Inc. (4495) — Company information

Business

i CUBED SYSTEMS Inc. is a B2B SaaS company centered on its corporate mobile device management (MDM) SaaS "CLOMO MDM," alongside its mobile application "CLOMO SECURED APPs" and "TRUST DELETE," an information leakage prevention solution for Windows PCs. Serving customers across a wide range of industries including corporations, healthcare, education, and government agencies, the company achieved No.1 share in the MDM market (own brand), as announced in December 2024, for 14 consecutive years since FY2011. Founded in Fukuoka in 2001, the company listed on the Tokyo Stock Exchange Mothers market (now the Growth Market) in 2020. With the CLOMO Business as its core pillar, the company also operates an Investment Business through CVC and M&A activities, pursuing sustainable growth under a five-company group structure.

Business Model

The company adopts a monthly/annual flat-rate subscription model, whereby stable revenue accumulates every month unless customers cancel or reduce licenses. The core sales channel is indirect sales through sales partners (mobile phone retailers, agencies, etc.), and OEM provision to NTT Docomo (Anshin Manager NEXT) has also driven penetration into the SME segment. After deployment, the Customer Success department maintains a high retention rate (95.5%) while improving ARPU through cross-selling of option services. Thanks to the scale advantages of cloud SaaS, the company can accommodate rapid customer growth without additional infrastructure investment.

Company Strengths

According to a survey by Deloitte Tohmatsu MIC Research Institute, the company achieved the No.1 share in the MDM market (proprietary brand) for 14 consecutive years from FY2011 to FY2024. Official partnerships with Apple, Google, and Microsoft (Android Enterprise Gold Partner certification for 3 consecutive years, Microsoft Device Compliance Partner, etc.) underpin its technical credibility.

The license retention rate for FY2025 was maintained at 95.5%. Initiatives by the Customer Success division, including an average phone response rate exceeding 90%, regular meetings, and step-up seminars held several times a month, support customer loyalty. The number of client companies using the service expanded to 8,620, an increase of 1,910 companies (up 28.5%) from the end of the previous fiscal year.

In February 2024, the CLOMO service was registered under ISMAP (Information system Security Management and Assessment Program), a security assessment system for government information systems, establishing credibility for procurement by government agencies. In March 2025, as a Microsoft Device Compliance Partner, the company implemented integration with Microsoft Intune and support for conditional access via Microsoft Entra ID, a differentiating feature not yet supported by domestic competitors (as of the end of June 2025, according to the company's own research).

ENVALITH's Perspective

Cumulative sales for the first three quarters of FY2026 (ending June 2026) of ¥3,262 million represent 72.4% of the full-year forecast of ¥4,508 million, while operating profit of ¥1,018 million represents 91.5% of the full-year forecast of ¥1,113 million. The high profit progress rate reflects a concentration of migration demand in the third quarter following the termination of NTT Docomo's "Anshin Manager" service (March 2026). Even considering that a portion of sales will be carried over to the fourth quarter and beyond due to the time lag between order receipt and the start of billing, there is a high likelihood of an upward revision to the full-year forecast.

Cumulative cost of sales for the first three quarters decreased year on year to ¥721 million (versus ¥780 million in the same period last year), while SG&A expenses increased to ¥1,522 million (versus ¥1,235 million in the same period last year). The decrease in cost of sales was mainly due to lower depreciation expenses resulting from software release timing and the absence of sales of operational investment securities in the Investment Business. The increase in SG&A expenses was driven by higher personnel expenses, goodwill amortization, recruitment costs, and advertising expenses; the structural cost-increase pressure accompanying group expansion warrants continued monitoring.

The Investment Business recorded zero sales for the cumulative first three quarters (versus ¥121 million in the same period last year) and an operating loss of ¥40 million (versus a loss of ¥21 million in the same period last year), with losses widening. This was mainly due to the absence of any planned sales of operational investment securities, which reaffirmed the instability of a revenue structure dependent on the timing of such sales. The cumulative number of investee companies remains at 9, and the timing at which the Investment Business will make a positive contribution to group performance remains unclear.

Performance Trend

Revenue grew 85% over four years, from ¥2,029 million in FY2021 to ¥3,750 million in FY2025. In FY2026, cumulative results through Q3 showed revenue of ¥3,262 million (up 20.0% year-on-year), operating profit of ¥1,018 million (up 45.1% year-on-year), and net income attributable to owners of the parent of ¥657 million (up 48.7% year-on-year), indicating accelerating growth. While cost of sales decreased year-on-year, gross profit expanded to ¥2,541 million (up 31.1% year-on-year), and the operating margin improved significantly to 31.2% (versus 26.0% in the same period of the previous year). As external factors, expanding demand for mobile device management driven by DX promotion and migration demand following the termination of NTT DOCOMO's MDM service are serving as short-term tailwinds. The full-year forecast remains unchanged, projecting revenue of ¥4,508 million (up 20.2% year-on-year) and operating profit of ¥1,113 million (up 23.0% year-on-year).

Growth Strategy

Three-pronged growth strategy: expanding MDM market share, entering the PC asset management market, and expanding business scope through M&A

The company is accelerating new customer acquisition by capturing migration demand to "Anshin Manager NEXT" following the termination of NTT DOCOMO's "Anshin Manager" service (March 2026). Acquired customers translate directly into subscription-based recurring revenue and also create cross-sell opportunities for MDM-related option services.

The company is pursuing a strategy to raise ARPU through cross-selling to existing customers by offering security and operational support services such as Trend Vision One Mobile Security (launched December 2025) and CLOMO Advanced Wipe secured by TRUST DELETE (launched December 2025).

Sales channel sharing with Wombat Security Co., Ltd., which became a subsidiary in January 2025, has already begun. The company is bidirectionally promoting the deployment of Wombat products through CLOMO's nationwide mobile sales channels and the deployment of CLOMO services through Wombat's sales channels to PC manufacturers and distribution trading companies, aiming to develop new customers in the PC domain.

The company is promoting procurement readiness in the government and public sector market by leveraging its ISMAP registration (February 2024), and is raising awareness of CLOMO services through the publication of implementation case studies for medical institutions and participation in specialized trade shows. In the third quarter under review, three new medical institution implementation case studies were published.

Through its CVC, the company has invested in companies with high affinity to the CLOMO Business, such as those in mobile, SaaS, and security, as well as local companies in Kyushu (nine companies cumulatively). The company will continue to promote expansion into new market areas and diversification of revenue sources through M&A.

i Cubed Systems, Inc.

Business

Business Model

Company Strengths

ENVALITH's Perspective

3Q cumulative results reach 91% of full-year operating profit forecast, upside potential to full-year guidance in focus

Structural shift of declining cost of sales and rising SG&A expenses significantly improves operating margin

Widening losses and zero sales in the Investment Business are a near-term concern

Performance Trend

Growth Strategy

Disclaimer

i Cubed Systems, Inc.

Business

Business Model

Company Strengths

MDM domestic proprietary brand share No.1 for 14 consecutive years

High license retention rate of 95.5% and a solid customer base

Competitive advantage through ISMAP registration and Microsoft Intune integration

ENVALITH's Perspective

3Q cumulative results reach 91% of full-year operating profit forecast, upside potential to full-year guidance in focus

Structural shift of declining cost of sales and rising SG&A expenses significantly improves operating margin

Widening losses and zero sales in the Investment Business are a near-term concern

Performance Trend

Growth Strategy

Expanding the customer base and building up recurring revenue through NTT DOCOMO OEM provision

Improving ARPU and promoting cross-selling through expanded option services

Entry into the PC asset management market through collaboration with Wombat Security Co., Ltd.

New customer development through a specialized approach to the healthcare and government markets

New business development through M&A and corporate venture capital

Disclaimer