Ridge-i Inc.

Business Details

Under the mission of "tackling unresolved challenges and realizing a new society by leveraging cutting-edge technology and business insight harnessing data and AI," the segment provides optimal AI solutions combining multimodal AI, end-to-end from strategy formulation through assessment, development, and maintenance & operation, based on a deep understanding of customers' objectives, on-site processes, and challenges. Its main customers are domestic companies, primarily major manufacturers. The business model is centered on flow revenue (AI Utilization Consulting & AI Development) while building up stock revenue (AI Maintenance & Operation). Recently, demand related to generative AI has surged rapidly, and combined with large-scale orders from the SBI Group, high growth has continued.

Recent Overview

Profit margin improved significantly on large SBI Group order and surge in generative AI projects

For the cumulative nine months ended Q3 FY2026 (ending July 2026), sales in the Custom AI Solutions Business expanded rapidly to ¥1,189 million (up 21.0% year on year) and segment profit rose to ¥349 million (up 142.1% year on year). Through the capital and business alliance with SBI Holdings entered into in September 2025, the company received a large-scale AI project order (approximately ¥4 million in scale) in March 2026, with partial revenue recognized. Large-scale, long-duration generative AI-related projects increased, driving the profit margin sharply higher to 29.4%. In addition, as a subsequent event, in May 2026 the company acquired SK Collaboration Co., Ltd. (a grandchild company, Soken Joho Co., Ltd., an independent SI vendor with 80 employees) for ¥200 million, strengthening its delivery capabilities for AX (AI Transformation) projects.

Key Products

Growth Drivers

• Rapid expansion of generative AI-related demand driving an increase in large-scale, long-term projects from existing and new customers
• Acquisition of large-scale projects leveraging financial data and corporate networks through the capital and business alliance with SBI Holdings (including the order received in March 2026)
• Accumulation of stock revenue through the AI Maintenance & Operation Service (continuation and expansion of large-scale maintenance and operation contracts)
• Strengthening of the AX delivery framework (FDE personnel and PM personnel) and enhanced capability to handle large-scale AX projects through the consolidation of Soken Joho Co., Ltd. as a subsidiary
• Maintaining and strengthening technological advantage through advance research and development in multimodal AI and next-generation AI technology

Risks

• Risk of losing competitive advantage due to delayed response to rapid technological innovation in AI-related technologies
• Risk of difficulty in hiring and rising personnel costs due to intensifying competition for AI and engineering talent
• Risk of customer concentration due to increasing dependence on SBI Group projects
• Risk of shrinking sales in the Satellite Data AI Analysis Service following the transition to the maintenance and operation phase after completion of the large-scale satellite AI project
• PMI (post-merger integration) risk and goodwill impairment risk associated with the integration of Soken Joho Co., Ltd. and the conversion of its personnel to FDE roles
• Risk of declining gross profit margin due to a rising outsourcing cost ratio