ENVALITH
サークレイス株式会社 logo

circlace Inc.

5029・Growth Market・Information & Communication

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サークレイス株式会社 logo
circlace Inc.5029

Business

Circlace Inc. is a consulting company that supports corporate digital transformation (DX) by leveraging the world's most advanced IT platforms, including Salesforce, ServiceNow, Databricks, AWS, Microsoft, and Anaplan. The company operates two segments: the Consulting Business (77% of revenue composition) and the Aoranau Business (23%), providing one-stop support from strategy formulation to design, implementation, operation, and adoption support. In addition, the company operates its proprietary SaaS "AGAVE (SaaS Service)", which specializes in overseas expatriate management (with over 12,000 contracted user IDs), giving it a recurring revenue base as well. Its main customers are the information systems, human resources, and corporate planning departments of major and mid-tier domestic companies, and the company listed on the Tokyo Stock Exchange Growth Market in April 2022.

Business Model

In the Consulting Business, project-based revenue from cloud implementation, business process design, and AI utilization support is combined with recurring revenue from Onsite Service and customer success initiatives. The SaaS service AGAVE (SaaS Service) secures stable revenue through a monthly subscription model, achieving sales of ¥190 million (up 25.6% year-on-year) in FY2026 (ending March 2026). The Aoranau Business provides ServiceNow-specialized, hands-on consulting that offers end-to-end support from implementation through adoption, driving continued order expansion.

Company Strengths

The company supports multiple major cloud platforms including Salesforce, ServiceNow, Databricks, AWS, Microsoft, and Anaplan, enabling it to offer one-stop solutions for customers' diverse DX challenges. In FY2026 (ending March 2026), Consulting Business sales grew steadily to ¥3,498 million (up 7.9% year on year), while AI&Data Innovation recorded high growth of 17.1% year on year.

AGAVE, a SaaS service specialized in managing overseas expatriate employees, achieved over 12,000 contracted user IDs as of the end of March 2026, establishing a stable revenue base through monthly subscription billing. SaaS sales in FY2026 (ending March 2026) continued to grow, reaching ¥190 million (up 25.6% year on year). The company continues to expand functionality, including the addition of an AI help desk feature utilizing generative AI, contributing to a high customer retention rate.

Aoranau Inc. (specializing in ServiceNow), established in August 2023, achieved sales of ¥1,043 million (up 85.7% year on year) and segment profit of ¥35 million (versus a loss of ¥118 million in the prior period) in FY2026 (ending March 2026), marking a turnaround to profitability. The business has moved from an investment phase into a full-fledged growth phase, with progress also being made on cross-selling collaboration with the Consulting Business.

ENVALITH's Perspective

In FY2026 (ending March 2026), the company achieved revenue of ¥4,540 million (up 19.4% year on year) and operating profit of ¥266 million (up 30.7% year on year), marking two consecutive years of revenue and profit growth. On the other hand, operating cash flow deteriorated from an inflow of ¥220 million in the previous period to an outflow of ¥57 million, mainly due to a decrease in the accrued bonus provision, an increase in trade receivables, and an increase in prepaid expenses. If the expansion of working capital accompanying sales growth continues, the assessment of cash-generating capability will become a challenge.

The company disclosed an aggressive earnings forecast for FY2027 (ending March 2027) of revenue of ¥5,700 million (up 25.5% year on year) and operating profit of ¥570 million (up 114.1% year on year). This is premised on accelerated growth in the Aoranau Business and greater efficiency in existing operations, but with fixed costs such as personnel expenses, recruitment costs, and system-related expenses continuing to rise, the bar for achieving a plan to double profit is high, making progress management important. As an external factor, the continuation of domestic DX investment demand is a precondition.

Segment profit in the Consulting Business fell to ¥231 million (down 28.2% year on year), with profit declining sharply even as revenue increased 7.9%. This is mainly due to increases in personnel expenses, recruitment costs, and outsourcing expenses associated with human capital investment, compounded by the external factor of tight supply and demand for digital talent. Whether revenue growth can absorb the increase in costs holds the key to improving profitability across the group as a whole.

Growth Strategy

Multi-cloud x generative AI x full-scale Aoranau operations to diversify medium- to long-term revenue base across multiple layers

Continuing to improve existing customer satisfaction and drive upsell in consulting services utilizing Salesforce, Anaplan, and other platforms, while maintaining steady growth in AI&Data Innovation. In areas of the consulting business that fell short of expectations, efficiency measures will continue in order to restore profit margins.

Enhancing the added value of AGAVE (SaaS Service) through the implementation of new features such as overseas payroll calculation, continuing to drive upsell and acquire new customers. Building up recurring revenue to improve earnings stability and complement the volatility risk associated with project-based revenue.

Achieved profitability (segment profit of ¥35 million) in FY2026 (ending March 2026), concluding the investment phase. Against the backdrop of an expanding ServiceNow market, order intake growth and reinforcement of the revenue base will continue, with the aim of achieving accelerated growth in FY2027 (ending March 2027). Cross-selling with the Consulting Business will also be strengthened.

Executed the underwriting of convertible bonds (totaling ¥89 million) in April 2026, aiming to expand the channel for winning projects in which the Company is commissioned to perform development work at the time of Salesforce/ServiceNow and other solution selection. A provision allowing conversion into shares by December 21, 2027 has been granted.

Last updated: July 19, 2026