ENVALITH
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Fines inc.

5125・Growth Market・Information & Communication

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株式会社ファインズ logo
Fines inc.5125

Business

Fines Inc. is a Tokyo Stock Exchange Growth Market-listed company founded in 2009 (the current legal entity was established in 2019). Its core business is the Video Cloud Business (accounting for 97.2% of sales composition), which centers on two pillars—the video distribution platform "Video Cloud" and the marketing platform "Raise"—to provide DX solutions to small and medium-sized businesses (SMBs) and sole proprietors nationwide. The cumulative number of client companies stands at 24,022 (as of end-June 2025). The company is also expanding peripheral solutions such as SFA, billing management, talent development, and MEO management, and has set forth the mid-term mission of "supporting DX for all small and medium-sized businesses." As a subsequent event, the company is also expanding into the staffing agency field through the acquisition of subsidiaries Orpla Inc. and Nexil Inc.

Business Model

A hybrid model combining Video Cloud's monthly subscription (stock revenue) with flow revenue from video production, website production, and other services. While expanding the stock revenue base through the accumulation of active contracts, the Customer Success department utilizes customer data to drive cross-selling into DX Consulting (Raise) and other offerings. In FY2025 (ended June 2025), the number of active Video Cloud contracts was 5,637 (+30% year-on-year), and the churn rate remained low at 0.6%.

Company Strengths

Video Cloud's churn rate remained at an extremely low level of 0.6% in FY2025 (ending June 2025) (0.5% in the prior period). The DX Consulting (Raise) churn rate has also shown an improving trend, from 7.8% (FY2023) to 5.0% (FY2025). Continuous relationship-building by the customer success department, together with issue visualization leveraging viewing data and marketing data, underpins customer loyalty.

Video Cloud's active SaaS contract count increased approximately 90% over two years, from 2,967 in FY2023 to 4,335 in FY2024 and 5,637 in FY2025. DX Consulting (Raise) also expanded from 1,664 to 2,381 contracts. Recurring contract unit prices have also remained stable, at ¥3,713 for Video Cloud and ¥8,945 for DX Consulting (Raise), supporting high revenue predictability.

As of the end of FY2025 (ending June 2025), cash and deposits stood at ¥1,962 million, and net assets were ¥2,188 million against total assets of ¥2,737 million (equity ratio of approximately 80%). The company has no interest-bearing debt and has secured sufficient retained earnings. Operating cash flow improved substantially to ¥278 million from ¥151 million in the prior period, giving the company the financial capacity to fund business investment and M&A with its own resources.

ENVALITH's Perspective

In the Q3 (FY2026 ending June 2026, or another fiscal year end—please note: consolidated to the terminology provided) financial results announced on May 15, 2026, an error was found in the accounting treatment of deferred tax assets and income tax adjustments, leading to a correction dated June 30, 2026. Quarterly net income attributable to owners of the parent was revised downward by approximately 63%, from ¥43 million to ¥16 million, and earnings per share also declined sharply from ¥9.84 to ¥3.71. As a listed Growth Market company, this incident raises questions about the reliability of its accounting management system, and investors need to closely monitor the state of internal control development going forward.

Cumulative net sales for the nine months through Q3 of FY2026 (ending June 2026) stood at ¥1,843 million, representing a progress rate of approximately 69% against the previous full-year net sales of ¥2,685 million. Meanwhile, post-correction operating income remained at only ¥57 million (operating margin of 3.1%), with ordinary income at ¥63 million. Post-correction SG&A expenses increased to ¥1,429 million compared to the pre-correction figure, reflecting a structure in which rising personnel costs and M&A-related expenses are compressing profit margins. Recovery of profitability for the full fiscal year will hinge on the earnings contribution in the fourth quarter.

The subsidiarization of Orpla and Nexil to expand AI-driven RPO services, along with the expansion of new services such as MEO Navi and the AI website package, represent strategic moves that capitalize on the tailwind of the expanding SME DX market (an external factor, with Fuji Keizai Research estimating the market size will reach ¥9,266.6 billion by 2030). However, the recoverability of goodwill amounting to ¥843 million (24% of total assets) and the absorption of post-M&A integration costs remain prerequisites for improving profit margins.

Growth Strategy

Deepening SME DX support through three pillars: expansion of recurring revenue, diversification of solutions, and M&A

Expand the monthly recurring revenue base through the continued accumulation of active SaaS contracts, which reached 5,637 (+30% year on year). The core of revenue stabilization lies in balancing long-term customer retention, leveraging a low churn rate, with the acquisition of new customers.

Cross-sell the Raise service, which has 2,381 active contracts at a monthly unit price of ¥8,945, to Video Cloud customers to raise the revenue per customer. Aim to improve gross profit margin by combining it with flow revenue such as website production.

Roll out MEO Navi and the Fines Website AI Package to expand the DX solution lineup for SMEs. Aim for differentiation and new customer acquisition through the use of AI.

Through making Orpla Co., Ltd. and Nexil Co., Ltd. subsidiaries, enter the recruitment field and roll out AI-driven RPO services. The recoverability of goodwill of ¥843 million (24% of total assets) and the absorption of integration costs will be key to future improvement in profit margins.

Last updated: July 17, 2026