ITFOR Inc.
4743・Prime Market・Information & Communication
Business
ITFOR Inc. was founded in 1959 and is listed on the Tokyo Stock Exchange Prime Market as an independent IT services company. The group consists of 7 consolidated subsidiaries. In its core "System Development & Sales" segment, the company provides personal loan business support systems for financial institutions (SCOPE and WELCOME), support for information system standardization at local governments, and core systems for retail and department stores (RITS), among others. The "Recurring" segment builds up stable earnings centered on maintenance services, BPO (Business Process Outsourcing) Service, cloud services, and payment processing agency services. Major customers include regional banks, credit unions (shinkin banks), card companies, leasing companies, and local governments, and the company positions regional revitalization and community-circulating business as its corporate purpose.
Business Model
A two-tier structure in which the System Development & Sales segment captures initial revenue from software design, development, and hardware sales, subsequently migrating customers to maintenance contracts, BPO, and Cloud Service to build up stable recurring revenue in the Recurring segment. Of the ¥23,101 million in net sales for FY2026 (ending March 2026), Recurring accounted for 40.8%, while an order backlog of ¥17,512 million enhances visibility into future revenue. Horizontal expansion within financial institution groups (from the core bank to affiliated card, leasing, and guarantee companies) simultaneously expands both revenue per customer and the number of customers.
Company Strengths
Order intake for the System Development & Sales segment in FY2026 (ending March 2026) was ¥15,065 million (137.3% YoY). Growth was driven by horizontal expansion of SCOPE, the personal loan business support system for financial institutions, across regional bank affiliates, and an increase in projects related to standardization of municipal information systems. Order backlog also increased to ¥7,390 million (123.2% YoY), providing high visibility into future revenue.
In FY2026 (ending March 2026), the Recurring segment posted sales of ¥9,429 million and segment profit of ¥1,903 million (profit margin of 20.2%). With continuous maintenance service contracts at its core, the segment builds on BPO, cloud, and payment agency services, and an order backlog of ¥10,122 million secures medium- to long-term revenue visibility.
At the end of FY2026 (ending March 2026), the equity ratio stood at 73.6% and the current ratio at 330.4%. Working capital and capital expenditures are basically funded through own capital, and the company also maintains commitment line agreements with its main banks. This near debt-free financial structure supports the agility needed for strategic M&A and CVC investments, and during the fiscal year the company made investments in several startups.
ENVALITH's Perspective
Performance Trend
Revenue expanded 35.7% over 5 periods, from ¥17,022 million in FY2022 (ending March 2022) to ¥23,101 million in FY2026 (ending March 2026). FY2025 (ending March 2025) saw a slight decline in revenue and operating profit, but FY2026 (ending March 2026) recovered with accelerating growth of +12.4% in revenue and +9.2% in operating profit. The main drivers were: (1) full-scale progress on projects related to standardization of local government information systems (a tailwind from the government's standardization policy as an external factor), (2) accelerated horizontal expansion into financial institution groups, and (3) additional revenue from the consolidation of 3 companies including Icell. The operating margin declined slightly to 16.7% (down 0.5pt from 17.2% in the prior period), mainly due to increased SG&A expenses (human capital investment and M&A-related costs), but the structural earning power has been maintained.
Growth Strategy
Aiming for net sales of ¥28,000 million and operating profit of ¥4,800 million in the final year of "FLY ON 2026"
Leveraging its track record with core banks, the company is accelerating platform expansion into affiliated card companies, leasing companies, guarantee companies, and others. By reliably capturing system renewal demand from existing customers while introducing new, high-value-added solutions, it is achieving steady revenue growth.
Support for the standardization of local government information systems in the public sector was an extremely significant factor in the current period's business expansion. Order intake in the System Development & Sales segment surged 137.3% year on year, and continued growth in orders is expected as the full-scale phase of standardization support progresses.
In addition to making Icell and two other companies consolidated subsidiaries (October 2025), the company has invested in ZenTech, MetCom, and WAmazing. It is pursuing a strategy of combining external technologies in areas such as inbound tourism, disaster prevention, and AI with its own resources to rapidly create new services aimed at solving social issues.
Accelerating AI implementation into existing core systems for financial institutions, local governments, and distribution. The company is introducing next-generation products such as "Pay Collect," an automated debt collection solution; "Agent Hub," which facilitates information sharing between financial institutions and law firms; and "DigiShare," for passing on information to family members, in order to enhance added value and create new revenue opportunities.
The final-year target of the Fourth Medium-Term Management Plan "FLY ON 2026" is to achieve ROE and ROIC of 15% or higher. ROE for FY2026 (ending March 2026) was 13.9% (down from 15.4% in the previous period), falling short of the target. The increase in assets accompanying the expansion of the scope of consolidation has temporarily depressed the ratio, and improvement through profit growth remains a challenge.
Last updated: July 19, 2026