Fusic Co., Ltd.

Business Details

The business consists of three segments: "Cross Technology Service," which combines cloud environment construction, system development, and AI data analysis; "MSP Service," centered on AWS maintenance/operation and resale; and SaaS-based proprietary products (the 360-degree evaluation tool "360 (Sanrokumaru)" and the school communication service "sigfy"). Based in Kyushu/Fukuoka, the company supports DX promotion for universities, local governments, and companies nationwide, leveraging strengths in prime contracts and an in-house, one-stop-shop model. FY2026 (ending June 2026) is positioned as a "year of investment," with the company accelerating advance investments in AI-Native development, talent expansion, the space sector, and M&A.

Recent Overview

Revenue rose 22.1% year on year to ¥1,781 million, but operating profit fell 41.5% due to advance investments

For the cumulative third quarter of FY2026 (ending June 2026) (July 2025 to March 2026), revenue reached ¥1,781 million (up 22.1% year on year), driven by growth in MSP Service resale sales (the Tokyo branch effect) and increased inquiries for Cross Technology Service. On the other hand, SG&A expenses increased substantially from ¥370 million in the same period of the prior year to ¥584 million due to accelerated advance investment in generative AI service utilization, talent, the space sector, and product advertising, and operating profit came to only ¥131 million (down 41.5% year on year). The full-year earnings forecast has been revised upward from the initial plan for both revenue and each profit line item (revenue of ¥2,353 million, operating profit of ¥9 million). Subsidy income of ¥15 million and other items arose in the third quarter, supporting ordinary profit. Shares in affiliated companies of ¥156 million have been recorded, indicating that the M&A strategy is taking concrete shape.

Key Products

Growth Drivers

• Expanding AX (AI Transformation) demand accompanying the accelerating practical application of generative AI and AI agents
• Continued growth of the domestic public cloud market (continued data center and AI infrastructure investment by major vendors such as AWS and Microsoft)
• Expansion of MSP resale sales and accelerated nationwide expansion via the Tokyo branch opened in January 2026
• Rising average unit price per customer in Cross Technology Service and deeper penetration with major customers
• Increase in the number of companies and local governments adopting 360 (Sanrokumaru) and sigfy, and receipt of large-scale orders
• New entry into the space industry-related software market and the full-scale launch of the M&A strategy (¥156 million recorded in shares of affiliated companies)

Risks

• Profit pressure from increased advance expenses (talent, generative AI, advertising, space sector) positioned as part of the "year of investment" (full-year operating profit forecast for FY2026 ending June 2026 of ¥9 million, down 96.4% year on year)
• Risk of revenue concentration in major customers (Machinowa Co., Ltd. 18.8%, Uchida Yoko Co., Ltd. 11.6%)
• Rising personnel costs and difficulty in hiring due to IT talent shortages and intensifying recruitment competition
• Downward pressure on MSP Service sales from yen depreciation and cloud usage cost optimization proposals
• Risk of existing development processes becoming obsolete due to the rapid evolution of generative AI and AI agents
• Impact of macro uncertainties such as US trade policy, Middle East conditions, and exchange rate fluctuations on customers' IT investment decisions