ENVALITH
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Human Technologies, Inc.

5621・Growth Market・Information & Communication

Official website
株式会社ヒューマンテクノロジーズ logo
Human Technologies, Inc.5621

Business

Human Technologies Co., Ltd. is a single-segment SaaS company whose core business is the development and sale of the cloud-based attendance management and HR/payroll system "KING OF TIME." Since launching the service in 2003, the company has focused on small and medium-sized enterprises as its core customer base, while in recent years also expanding adoption among large enterprises. Starting from attendance management, the company has broadened its functionality to cover HR management, payroll calculation, year-end tax adjustment, and electronic contracts, pursuing a multi-product strategy. In FY2026 (ending March 2026), the number of billed companies reached 61,073 and billed IDs reached 3,586 thousand, with indirect sales through sales partners accounting for approximately 64% of billed IDs. The company listed on the Tokyo Stock Exchange Growth Market in December 2023.

Business Model

KING OF TIME is a subscription model that provides all functions at a one-price rate of ¥300 per person per month. The billing structure completed its transition from clock-in-count-based billing to registered-user-count-based billing in April 2025, and ARR expanded to ¥7,132 million (FY2026, ending March 2026). Indirect sales via sales partners and OEM partners account for approximately 64% of billed ID counts, and the structure of efficiently acquiring customers while curbing advertising expenses is contributing to improved profitability.

Company Strengths

The monthly churn rate remained low at 0.27% in FY2026 (ending March 2026). Following the completion of the transition to per-registered-user billing for all customers in April 2025, ARR grew 49% over two years, from ¥4,792 million in FY2024 (ended March 2024) to ¥7,132 million in FY2026 (ending March 2026). The establishment of a billing structure aligned with actual usage has directly contributed to stabilizing the revenue base and lifting the overall sales level.

The company has built a sales partner network, including OEM provision to Yayoi Co., Ltd., Miidas Inc., HRBrain, Inc., and others, acquiring approximately 64% of billable IDs through indirect sales. Unlike a direct-sales-centric model that requires substantial advertising expenses, the company achieves efficient customer acquisition by collaborating with partner companies that already have their own customer bases.

By granting paid AI accounts to all employees, the company has applied AI to actual operations across sales, development, and support departments. In FY2026 (ending March 2026), sales increased 23.8% year on year, while the increase in cost of sales and selling, general and administrative expenses was contained to 19.5% year on year, resulting in operating profit of ¥1,371 million, up 47.2% year on year.

ENVALITH's Perspective

The revenue growth in FY2026 (ending March 2026) (up 23.8% year-on-year) includes a boost effect from the transition to per-registered-user billing, and the company itself has clearly indicated a shift toward a "normal revenue growth trend" from the following period onward. The projected revenue growth rate for FY2027 (ending March 2027) is expected to decelerate to 14.3%, making it a key point of evaluation whether initiatives for new customer acquisition, expansion of usage among existing customers, and ARPU improvement function as planned. It will be necessary to closely monitor the accumulation of results in new user acquisition via OEM partners.

The operating margin for FY2026 (ending March 2026) achieved significant improvement to 18.3% (versus 15.4% in the previous period), but for FY2027 (ending March 2027), the forecast of operating profit of ¥1,537 million on revenue of ¥8,569 million (operating margin of 17.9%) indicates the margin will remain essentially flat. The continuation of upfront investments in AI-related initiatives, security infrastructure enhancement, SMP feature expansion, and Payroll Service for ASEAN forms a structure that constrains margin improvement, making the timing for achieving the medium-term target of a 30% operating margin a key issue. How the market evaluates the timing at which the results of these investments become apparent will influence the direction of the stock price.

As of the end of FY2026 (ending March 2026), the equity ratio stood at 77.6%, with net assets of ¥5,270 million and zero interest-bearing debt, maintaining debt-free management. On the other hand, the majority of investing cash flow (¥-2,390 million) consists of financial asset management activities such as time deposits (¥-2,100 million), money held in trust (¥-300 million), and acquisition of securities (¥-946 million), meaning active capital allocation toward business investment remains limited. The dividend payout ratio is maintained at around 30% (¥32 per share in FY2026 (ending March 2026), a 56% increase year-on-year), but explaining to investors the policy for utilizing surplus cash (M&A, share buybacks, additional dividend increases, etc.) may become a future challenge.

Growth Strategy

Aiming for a growth trajectory of around 20% and a profit margin of 30% through OEM ecosystem expansion, ARPU improvement, and AI utilization

The billing system change, progressively implemented since October 2023, was completed in April 2025, including application to existing customers via direct sales and distributors. This resulted in an increase in the number of billed IDs and a boost to sales levels, with FY2026 (ending March 2026) net sales landing above the initial forecast.

OEM provision was sequentially launched to Yayoi Co., Ltd. (April 2025), Miidas Co., Ltd. (December 2025), and HRBrain, Inc. (April 2026). The company is building a system that seamlessly connects recruitment through attendance management, payroll calculation, personnel evaluation, and development, promoting the development of new user segments.

The company is advancing feature expansion of the Subscription Management Platform (SMP) and the Payroll Service for ASEAN. Human resources freed up through AI utilization are being shifted to paid Premium Support, aiming to raise the per-customer unit price among existing customers.

By providing paid AI accounts to all employees, the company is promoting the application of AI to actual operations across sales, development, and customer support departments. In FY2026 (ending March 2026), against net sales growth of +23.8%, the increase in cost of sales and SG&A expenses was contained to +19.5%, achieving an operating margin of 18.3%. As a medium-term goal, the company aims to achieve an operating margin of around 30%.

Last updated: July 19, 2026