ENVALITH
ミガロホールディングス株式会社 logo

MIGALO HOLDINGS Inc.

5535・Prime Market・Real Estate

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ミガロホールディングス株式会社 logo
MIGALO HOLDINGS Inc.5535

Business

Migaro Holdings is a Tokyo Stock Exchange Prime Market-listed company that transitioned to a holding company structure in October 2023, guided by its corporate philosophy of "creating new value through the fusion of digital and physical realms and contributing to solving social challenges." The company consists of two segments: the DX Promotion Business, which handles the facial recognition ID platform "FreeiD (Facial Recognition ID Platform)" and AI Solutions and contracted cloud system development, and the DX Real Estate Business, which develops and sells new and used condominiums, and operates leasing management, building management, and crowdfunding services centered on a DX real estate membership base of over 190,000 members. Its main customers are real estate investors, end-users, and corporate DX promotion managers, and the company leverages group-wide synergies to apply AI and DX technologies across both businesses.

Business Model

In the DX Real Estate Business, the company acquires customers through digital marketing starting from a membership database of 191,153 members, building up revenue from new and used condominium sales together with recurring fee income from leasing and building management. Using this stable revenue as a funding source, the company continues to make upfront investments in the DX Promotion Business, which handles FreeiD's recurring revenue and Digital Integration Service contract development. Through M&A to expand engineering talent and group companies, the company aims to scale up the DX Promotion Business, with the overall structure designed to enhance the enterprise value of the group as a whole.

Company Strengths

As of the end of FY2026 (ending March 2026), the number of DX Real Estate Business members reached 191,153, with continuous member acquisition through digital marketing forming the revenue base. This member database serves as a primary channel for new and used condominium sales, and is a proprietary asset directly linked to the expansion of stock revenue from 7,272 units under leasing management and 6,115 units under building management—an asset that is difficult for competitors to replicate in a short period.

The company holds patents related to facial recognition implementation across entire apartment complexes (Patent No. 6690074, No. 6839313, etc.), and as of the end of FY2026 (ending March 2026), had achieved implementation in 376 condominium buildings (1.8 times year-on-year for the same period). This creates a structure in which recurring revenue accumulates from post-installation operation and maintenance, with high switching costs underpinning the stability of revenue.

Since 2021, the company has sequentially made subsidiaries of multiple companies, including Avant, CloudTechPlus, AKI Commerce, Terra Web Create, and U-System Creation, building a track record of expanding engineering talent and service areas within the DX Promotion Business. Through the mutual utilization of skills, know-how, and track records within the group, the company has achieved increased order intake and efficient handling of projects.

ENVALITH's Perspective

FY2026 (ending March 2026) saw revenue of ¥57,532 million (+11.3% YoY) and operating profit of ¥3,061 million (+12.8% YoY), marking the third consecutive year of revenue and profit growth and setting a new record high. However, the operating margin remained at only 5.3%, constrained by the high cost ratio of the DX Real Estate Business (cost of sales ratio of approximately 84%) and the burden of company-wide expenses (¥1,540 million). Accelerating profitability in the DX Promotion Business will be key to future margin improvement, but under the policy of continuing upfront investment, significant near-term improvement seems unlikely.

As of the end of FY2026 (ending March 2026), interest-bearing debt (short-term borrowings of ¥8,592 million + long-term borrowings of ¥18,013 million + corporate bonds of ¥566 million) totaled over ¥27,171 million, accounting for approximately 47% of total assets. Amid the Bank of Japan's upward revision of its policy interest rate and growing pressure for long-term rates to rise, interest expenses increased from ¥480 million in the previous period to ¥618 million in the current period. As an external factor, deterioration in the interest rate environment directly affects both earnings and financial conditions, requiring continuous monitoring of rising borrowing costs and trends in property sale prices. The improvement in the equity ratio from 20.4% to 26.3%, aided by the public offering, is commendable.

The DX Promotion Business's operating profit surged 384.0% YoY to ¥366 million, turning significantly profitable, which can be evaluated as a result of upfront investment. Meanwhile, the company's forecast for FY2027 (ending March 2027) calls for revenue of ¥65,000 million (+13.0%), operating profit of ¥3,300 million (+7.8%), and net income of ¥1,500 million (+4.6%), indicating an anticipated slowdown in the pace of profit growth. This appears to be a conservative plan factoring in continued upfront investment in the DX Promotion Business as well as rising construction costs and interest rates affecting the DX Real Estate Business. Whether there is room for upside will depend on the pace of FreeiD adoption and the timing of M&A execution.

Growth Strategy

A dual-axis strategy of accelerated growth in the DX Promotion Business through M&A and talent acquisition, combined with steady scale expansion in the DX Real Estate Business

The company is expanding the number of firms adopting FreeiD as a standard for condominiums through the launch of the new product "FreeiD Mansion Plus." Building on adoption results of 376 buildings as of the end of FY2026 (ending March 2026) (1.8x year-on-year), the company is pursuing stable revenue generation through the accumulation of monthly usage fee income. It plans to continue investing in system development and promotional advertising expenses in FY2027 (ending March 2026 [sic]).

During the current fiscal year, the company acquired two companies (Tera Web Create and U-System Creation) to strengthen its engineering base. Centered on AI Solutions (in-house AI Lab), the company aims for substantial growth in the DX Promotion Business through increased new order intake, acquisition of large-scale projects such as core systems, and the realization of mutual synergies among group companies.

Amid an external environment of rising construction costs and interest rates, the company prioritizes expanding DX Real Estate membership, improving sales staff productivity, and strengthening property procurement capabilities. It also continues to increase recurring stock income by accumulating leasing management and building management units. The company expects continued expansion of the DX Real Estate Business in FY2027 (ending March 2026 [sic]).

During the current fiscal year, the company carried out the merger of Banners Co., Ltd. and Best Practice Co., Ltd. (surviving company: TIERO Co., Ltd., October 2025), as well as the absorption-type merger of Omniscience by Avant Co., Ltd. and the absorption-type split of C.B. Lab (January 2026). The company aims to enhance competitiveness through optimization of group management resources and the realization of synergies.

Last updated: July 19, 2026