AR advanced technology, Inc.
5578・Growth Market・Information & Communication
Business
AR Advanced Technology, Inc. (ARI) operates the DX Solutions Business (AR Advanced Technology, Inc. — single segment), supporting customers' realization of DX (digital transformation). Its core service is "DX Consulting and AI-Driven Cloud Integration," providing everything from upstream IT consulting and requirements definition through design, construction, maintenance, and operation on a one-stop basis. The company also owns proprietary products (LOOGUE, ZiDOMA, and Mieta) and provides multi-cloud technology centered on AWS and Microsoft Azure to a wide range of customers spanning manufacturing, distribution, finance, and government sectors. It listed on the Tokyo Stock Exchange Growth Market in June 2023. The company comprises 4 consolidated subsidiaries and 2 equity-method affiliates.
Business Model
The company employs a hybrid approach that provides cloud integration, proprietary products, and DX talent services in a one-stop manner, starting from consulting proposals. Know-how gained from the flow business (integration) is fed back into the stock business (products and solutions), building a virtuous cycle that maximizes customer LTV. Subsidiary ATS functions as a resource pool for DX talent, and its procurement capability spanning over 300 business partners supplements manpower shortages. Stable revenue is secured through a combination of contracting, quasi-delegation, and staffing-type contract arrangements.
Company Strengths
Obtained AWS's "AWS 500 APN Certification Distinction" (total of 766 certifications) and is certified as an APN Advanced Tier Services Partner. Also holds 102 Microsoft Azure certifications, giving it multi-cloud capability. In addition, a procurement network of over 300 business partners supports securing the manpower needed for large-scale projects.
Established an AI-driven development framework utilizing generative AI, advancing multiple projects that leverage natural language processing and image recognition technologies. In FY2025 (ended August 2025), efforts to strengthen orders for high-value-added projects proved successful, with gross profit reaching ¥3,771 million (up 32.9% year on year), exceeding the 27.2% revenue growth rate. The company invested ¥58 million in R&D expenses, continuing to reinforce its technology base.
In FY2025 (ended August 2025), orders received amounted to ¥15,003 million (132.0% of the previous period), and the order backlog reached ¥2,618 million (148.1% of the previous period), both showing substantial buildup, providing a favorable leading indicator for revenue recognition in future periods. Cash flow from operating activities also improved significantly to ¥1,141 million (up 214.3% year on year), and cash and cash equivalents increased to ¥2,902 million.
ENVALITH's Perspective
Performance Trend
For the cumulative nine months of FY2026 (ending March 2026) [September 2025–May 2026], net sales were ¥12,145 million (+17.7% YoY), operating profit ¥908 million (+61.8%), ordinary profit ¥927 million (+63.3%), and quarterly net income attributable to owners of the parent ¥528 million (+112.4%), representing substantial growth across all profit stages. Gross margin improved by approximately 5 points, from 26.3% in the same period last year to 31.2%, driven by an increasing proportion of high-value-added projects through AI-driven development. The absence of extraordinary losses in the current period (versus ¥47 million in impairment losses and headquarters relocation costs recorded in the same period last year) also contributed significantly to the sharp increase in net income. As an external factor, robust demand for DX and AI investment aimed at labor-saving and productivity improvement provided a tailwind. Historical performance shows net sales of ¥10,162 million and operating profit of ¥528 million in FY2023, ¥11,130 million and ¥422 million in FY2024, and ¥14,153 million and ¥829 million in FY2025, with progress tracking well toward the full-year FY2026 forecast of ¥16,433 million in net sales and ¥1,166 million in operating profit.
Growth Strategy
Pursuing medium- to long-term growth through four pillars: AI-driven development, enhanced recruitment, and group synergy
Through the expansion of generative AI development environments and the establishment of a company-wide AI-native development framework, the company provides seamless, end-to-end services from upstream consulting through to AI-native development. Large-scale AI development-related orders from leading domestic companies are expanding, and results are already evident in the structural improvement of gross profit margin (26.3% → 31.2%).
Recruitment is progressing at a pace exceeding the plan, and measures to rapidly deploy newly hired personnel into productive roles have proven effective. The expansion of human resources is supporting both net sales growth and profit margin improvement simultaneously, with cumulative EBITDA for the third quarter of FY2026 (ending March 2026) reaching ¥1,073 million (up 56.0% year on year), maintaining high growth.
The company is building its business foundation through collaboration among group companies, including P.R.O Corporation. It is pursuing a hybrid approach combining deeper engagement with existing customers and development of new customers. Meanwhile, the company has streamlined the group structure by transferring all shares in equity-method affiliate emotivE, aiming to concentrate management resources.
Stable profit generation has improved the equity ratio to 38.7% (from 31.4% at the previous fiscal year-end). Dividends are planned at ¥7.00 per share (post-stock split) at fiscal year-end for the FY2026 (ending March 2026) forecast. The company has adopted improving capital efficiency alongside sustainable growth as a management policy, and improvement in financial soundness continues.
Last updated: July 17, 2026