Linkers Corporation

Business Details

The company provides self-operated matching services centered on "Linkers Sourcing," a needs-driven technology exploration service, and "Linkers Marketing," a seeds-driven application development service, along with "LFB (Linkers for BANK / Linkers for Business)," a SaaS-type matching system for financial institutions and business corporations. Main customers include major manufacturers, small and medium-sized manufacturing companies nationwide, and regional financial institutions. Through a proprietary platform combining AI matching, an industrial coordinator network, and a self-nomination system, the company meets technology exploration and application development needs centered on manufacturing, as well as support needs for client companies of regional financial institutions.

Recent Overview

Revenue declined 8.8% and segment loss roughly doubled year over year, accelerating the deterioration in profitability

In the cumulative third quarter of FY2026 (ending July 2026), segment revenue was ¥742 million (down 8.8% year on year), and segment loss expanded significantly to ¥510 million (compared with ¥257 million in the same period of the prior year). Although sales personnel increased by 10 compared with the same period of the prior year, it has taken time to bring them up to full productivity, and the number of cases initiated fell to 69, below the prior year's 79. In addition, following a series of incidents related to the former representative director, the decision-making process for new customers and prospective adopters has lengthened, and compliance checks have become more cautious, resulting in zero new LFB adoptions in the third quarter of the current fiscal year.

Key Products

Growth Drivers

• Continued expansion of open innovation investment centered on manufacturing (medium- to long-term expansion of technology exploration and application development needs)
• Expansion of LFB's recurring revenue base (49 institutions cumulatively, with monthly usage fees from existing clients remaining generally solid)
• Improved case generation capability through strengthened sales personnel recruitment (up 10 from the same period of the prior year, with effects expected as they become fully productive)
• Growing needs among regional financial institutions to expand non-interest income and support new business creation by client companies
• Creation of new revenue sources through development and sales promotion of the new product "Linkers TX"
• Improved customer satisfaction and expanded repeat business through strengthened customer success operations

Risks

• Continuation of the declining trend in domestic exploration cases (Linkers Sourcing / Marketing) (69 cases initiated in the cumulative third quarter, down from 79 in the same period of the prior year)
• Delay in short-term earnings recovery due to the time required to bring sales personnel to full productivity
• Reputational risk stemming from a series of incidents related to the former representative director (lengthening decision-making processes for new customers and prospective adopters, stagnation in new LFB adoptions)
• More cautious investment decisions by client companies due to geopolitical risks (uncertainty over the Middle East situation and US trade policy) and interest rate fluctuations and persistently high raw material prices
• Risk of commoditization of some services due to in-house development of information gathering and summarization capabilities driven by the spread of generative AI, and changes in the competitive environment
• Risk of impairment of fixed assets (balance of software and software in progress increased from ¥175 million at the end of the prior fiscal year to ¥313 million)