Commerce One Holdings Inc.

Business Details

Seven companies—Future Shop Co., Ltd. (EC site construction and operation support), Softel Co., Ltd. (unified back-office management), TradeSafe Co., Ltd., Sorairo Co., Ltd., Kidoku Co., Ltd., Commerce Connect Co., Ltd., and AttendMe Co., Ltd.—provide one-stop SaaS-based support from EC site front-end to back-office. Primary customers are mid-tier and small-to-medium domestic EC operators. In FY2026 (ending March 2026), revenue increased, but operating profit declined significantly due to higher SG&A expenses associated with growth investments.

Recent Overview

Revenue increased, but operating profit fell 40% due to growth investments; net income recovered significantly as the equity-method investment loss disappeared

In FY2026 (ending March 2026), revenue increased to ¥3,895 million (+5.5% year on year), while SG&A expenses ballooned to ¥1,754 million (+19.9% year on year) due to enhanced hiring, renewal of existing systems, and new business development investments, resulting in a significant decline in operating profit to ¥380 million (-40.4% year on year). However, as the ¥250 million equity-method investment loss recorded in the prior period disappeared in the current period, ordinary profit increased to ¥472 million (+11.6% year on year). Net income attributable to owners of parent recovered significantly to ¥302 million (+230.1% year on year). Commerce Connect and AttendMe (formed through the merger of former PINES and Newrona) newly joined the scope of consolidation. For FY2027 (ending March 2027), the company plans revenue of ¥4,345 million and operating profit of ¥500 million (+31.5% year on year). An annual dividend of ¥42, including a commemorative dividend for the 20th anniversary of the company's founding, is planned.

Key Products

Growth Drivers

• Continued expansion of the domestic BtoC-EC market (the EC penetration rate is around 9% domestically, versus approximately 19.4% in Europe, the US, and China, indicating significant room for growth)
• Increased revenue per customer for futureshop (expansion of monthly usage fees and affiliated service revenue) and increased gross merchandise value via payment processing partners
• Expanded service offerings addressing diversifying retail EC usage, including omnichannel strategies, cross-border EC, social commerce, and AI-driven operational efficiency
• Development and rollout of the AI-Powered Next-Generation Integrated EC Platform by Commerce Connect Co., Ltd.
• Enhanced customization project proposals and improved profitability at Softel Co., Ltd. (operating profit +60.6% in FY2026, ending March 2026)
• Support for back-office efficiency improvements at EC operators through generative AI-powered solutions (such as AI Creative One)
• Strengthening of the group's one-stop SaaS-based structure covering everything from EC site front-end to back-end

Risks

• Increased SG&A expenses from enhanced hiring and new business development investment continuing to pressure operating profit (operating profit -40.4% in FY2026, ending March 2026)
• Rising development costs related to existing system renewal and new business initiatives at Future Shop (operating profit -17.3%)
• Risk of rising engineer costs at Softel Co., Ltd. due to increased maintenance man-hours from responding to major mall specification changes, among other factors
• Upfront investment burden associated with business launches at newly consolidated subsidiaries such as Commerce Connect and AttendMe
• Intensifying competition for hiring development and marketing talent in the internet sector
• Uncertainty regarding profit contribution from subsidiaries such as Sorairo Co., Ltd. and Kidoku Co., Ltd.
• Risk of group-wide resource allocation strain due to expanded development investment in the environmental energy business (Enecycle Corporation)