note inc.

Business Details

Operates the CtoC media platform "note," the corporate information-distribution media SaaS "note pro," and corporate services such as company-sponsored contests. Centered on a "CtoC × monetization" model in which creators post and sell articles, manga, audio, and video content and readers subscribe to or support them, note provides a safe creative environment with no rankings and no advertising. For corporate clients, it offers owned-media-building SaaS leveraging the note platform to support corporate information-distribution DX. This segment accounts for approximately 95% of consolidated net sales, making it the core business.

Recent Overview

First-half sales rose 32.2%, and segment profit surged 996% year on year, sharply improving profitability.

Sales of the Media Platform Business for the first half of FY2026 (ending November 2026) (December 2025–May 2026) were ¥2,475 million (up 28.0% year on year). By breakdown: note sales were ¥1,958 million (up 24.1%), note pro sales were ¥407 million (up 33.7%), corporate services sales were ¥87 million (up 114.9%), and other sales were ¥22 million (up 91.7%). Segment profit was ¥583 million (up roughly 11-fold from ¥53 million in the prior-year period), marking a substantial improvement in profitability. With selling, general and administrative expenses held nearly flat, the increase in sales flowed directly through to profit.

Key Products

Growth Drivers

• Expansion of GMV driven by continued growth in note's user base and content volume (12.48 million members and 82.09 million published content items as of the end of May 2026; Q2 GMV of ¥6,484 million, up 24.6% year on year)
• Increase in note pro paid contracts (ARR of ¥773 million as of the end of May 2026, up 26.4% year on year)
• Expansion of the creative user base driven by the spread of generative AI, and enhanced platform value through AI assistant features and other tools
• Growth of the creator economy market and increasing activity in personal information distribution and expansion of fan communities
• Expanded collaboration in IP creation, publishing DX, and fan community areas through the capital and business alliance with KADOKAWA
• Expansion of projects driven by growth in users of corporate services (note Contest) (first-half sales up 114.9% year on year)

Risks

• Risk that increases in spam content and copyright issues caused by generative AI could affect the platform's trustworthiness and safety
• Risk of creator and reader outflow due to the rise of competing platforms
• Risk of profit margin pressure from increased variable costs such as payment processing fees and infrastructure/communication costs accompanying GMV growth
• Risk of slowing ARR growth due to increased note pro cancellations or a slowdown in new contract acquisition
• Risk of declining trust due to leaks of personal or confidential information