ENVALITH
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Fast Accounting Co.,Ltd.

5588・Growth Market・Information & Communication

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ファーストアカウンティング株式会社 logo
Fast Accounting Co.,Ltd.5588

Business

First Accounting Co., Ltd. is an AI solutions company specialized in the accounting field, established in June 2016. Centered on AI-OCR technology, it provides the Robota Series (for invoices, receipts, bankbooks, journal entries, etc.), the cloud-based AI platform Remota, the Accounting AI Agent, and the Peppol Access Point, all in SaaS format. Its main target is enterprise companies with sales of ¥50 billion or more, and the number of client companies as of the end of December 2025 stood at 165. The company listed on the Tokyo Stock Exchange Growth Market in September 2023. In April 2025, it established a subsidiary in the State of Illinois, USA, and has begun overseas expansion as well.

Business Model

Revenue has a three-tier structure of monthly recurring charges (MRR), usage-based charges, and professional services. In FY2025 (ending December 2025), monthly recurring revenue was ¥1,724,709 thousand, usage-based revenue was ¥252,726 thousand, and professional services revenue was ¥387,875 thousand. While the accumulation of monthly recurring revenue secures revenue continuity, professional services revenue is expanding rapidly on the back of Accounting AI Agent adoption. Through a partner sales structure leveraging sales partners and OEM partners, the company has achieved customer acquisition while keeping the advertising expense ratio to approximately 2.6%.

Company Strengths

The gross profit margin for FY2025 (ending December 2025) was 72.4%. The subscription model, underpinned by monthly recurring revenue (MRR) of ¥1,724,709 thousand, provides high revenue continuity, with an average contract term of approximately 29 months and LTV reaching ¥108 million. The gross churn rate remained low at 0.7% in Q4 FY2025 (ending December 2025).

ARPA by service tenure shows a structure where unit prices rise substantially with longer customer relationships: ¥609 thousand for under 1 year, ¥838 thousand for 1 to under 2 years, and ¥1,317 thousand for 2 years or more. MRR expansion driven by upselling and cross-selling has been demonstrated as a track record, indicating a high revenue contribution from the existing customer base.

AI products are researched and developed by in-house AI scientists, with 32 annotation staff secured as of the end of December 2025 for creating training data. A research team called FA Research has been established, with specialized personnel including PhD holders driving the development of accounting-specialized LLMs and AI agents. R&D expenses totaled ¥198,340 thousand.

ENVALITH's Perspective

FY2026 Q1 revenue of ¥661 million represents 21.3% of the full-year forecast of ¥3,109 million, and operating profit of ¥132 million represents 42.4% of the full-year forecast of ¥312 million. The progress rate for operating profit is particularly high, with a Q1 standalone operating margin of 20.1%, a high level. However, year-on-year comparison with the same quarter of the prior year is not possible (quarterly consolidated financial statements have only been prepared since Q3 of the fiscal year ended December 2025), and further accumulation of quarterly data will be needed to grasp seasonality going forward.

Based on a resolution of the Board of Directors on February 19, 2026, the company acquired 175,600 treasury shares for ¥149,988 thousand. At the same time, it newly acquired ¥438,354 thousand of investment securities (an increase from zero at the end of the previous fiscal year). Cash and deposits decreased from ¥1,769 million to ¥1,171 million, but the equity ratio remains healthy at 56.7%. While this confirms a capital allocation direction that balances shareholder returns with strategic investment, it should be noted that disclosure regarding the content and purpose of the investment securities is limited.

Against the backdrop of a worsening shortage of accounting personnel, the company has begun full-scale sales of its Accounting AI Agent, which supports operations requiring "understanding of accounting standards and practical judgment" beyond simple data entry and reconciliation. As an external factor, the structural trend of increasing accounting DX demand continues, driven by progress in digitization through the spread of Peppol and the growing complexity of environments where paper and electronic records coexist. However, detailed KPIs relevant to the revenue contribution of agent-type services—such as unit price, churn rate, and implementation lead time—have not yet been disclosed, and quantitative confirmation of progress going forward will be key to investment decisions.

Growth Strategy

Growth acceleration driven by three pillars: expanded sales of the Accounting AI Agent, U.S. market expansion, and the Proceed alliance

Full-scale sales of the Accounting AI Agent, which supports high-value-added tasks requiring accounting standard interpretation and practical judgment, have commenced. Amid worsening shortages of accounting personnel, demand is expected to expand, with revenue contribution anticipated from both upselling to existing customers and acquisition of new customers.

The number of client companies reached 170 at the end of 1Q FY2026 (up 5 from 165 at the end of the previous fiscal year), progressing steadily. Cross-selling of Remota, the Robota Series, and the Accounting AI Agent is being pursued in parallel to raise ARPA. The low-cost customer acquisition model leveraging the partner sales structure is being maintained.

Through an alliance with Proceed, a major provider of fixed asset and lease management systems, the company aims to capture demand related to compliance with new lease accounting standards (e.g., IFRS 16). The goal is to offer a differentiated solution combining accounting document processing AI with lease management systems.

Overseas market expansion is being advanced through a U.S. subsidiary established in Illinois. The company aims to adapt its domestically developed accounting-specialized AI technology to overseas accounting standards, using this as a foothold for global expansion. Earnings contribution at this stage remains limited.

Last updated: July 17, 2026