EXTREME CO.,LTD.
6033・Growth Market・Services
Business
Extreme Co., Ltd. is a digital creative company established in 2005 and listed on the TSE Growth Market. Its core business is the Digital Talent Business, in which creators and IT engineers are hired as regular employees and dispatched on-site to client companies. It also operates the Contract Development Business, which handles take-home development such as smartphone apps, cloud, and CRM, and the Content Property Business, which utilizes game IPs such as the approximately 100 titles under the Mecyaiah brand and Momoiro Taisen Pairon for licensing and game sales. The company has five consolidated subsidiaries (EXLABO & Consulting, EXTREME VIETNAM, Dragami Games, S.A.S, and Sakata S.A.S.), with games, web services, and corporate DX as its main customer base.
Business Model
In the Digital Talent Business, regular-employee creators and engineers are stationed on-site at client companies, generating revenue as the product of the number of active projects (10,339 in FY2026 (ending March 2026)) and the utilization unit price (¥709 thousand in the same period). In the Contract Development Business, the company offers comprehensive proposals across four categories—new development, maintenance and operations, and Lab-type Development—while leveraging its Vietnam offshore base to secure cost competitiveness. In the Content Property Business, the company earns royalty income from licensing game IP and game sales revenue from Game Development & Sales by Dragami Games.
Company Strengths
Unlike registered-type staffing, the company employs all engineers as regular employees, and as a company guarantees their skills and character through internal training, education, and the technical exchange facility "Co-CORE." Utilization rate is maintained at 100% except under special circumstances, enabling the company to provide stable solutions to clients.
Leveraging technical capabilities built for the game and entertainment industry since its founding, the company has actively expanded into non-entertainment areas such as web services, corporate DX, and UI/UX. As a result, the revenue ratio between entertainment-related clients and other clients has reversed, building a client base with reduced dependence on economic sentiment risk.
As of the end of FY2026 (ending March 2026), the balance of cash and deposits plus highly liquid investment securities (such as high-rated foreign bonds) was approximately ¥6,104 million. Net assets stood at ¥7,235 million and liabilities at ¥2,206 million, reflecting high financial soundness and a financial base capable of responding flexibly to M&A and new investments.
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive fiscal periods, from ¥7,232 million in FY2022 (ending March 2022) to ¥11,796 million in FY2026 (ending March 2026), but the growth rate decelerated from 11.0% in FY2025 (ending March 2025) to 4.1% in FY2026 (ending March 2026). Operating profit turned to a 5.1% year-on-year decline in FY2026 (ending March 2026), reaching ¥1,440 million, a reversal from the 38.3% increase recorded in FY2025 (ending March 2025). The main causes were a significant decline in revenue in the Content Property Business (down 36.9% year-on-year) and an increase in selling, general and administrative expenses (outsourcing fees +¥66 million, rent +¥20 million, etc.). The forecast for FY2027 (ending March 2027) calls for revenue of ¥13,000 million (+10.2%), operating profit of ¥1,300 million (down 9.7%), and net income of ¥920 million (down 21.9%), anticipating operating profit decline for a second consecutive fiscal period. As for the external environment, sustained robust AI-related investment is expected to support demand for digital talent, while sustained high prices resulting from soaring energy prices and exchange rate fluctuations may affect corporate IT investment decisions.
Growth Strategy
Aiming for revenue exceeding ¥10 billion and an operating margin of 20% through expansion of the digital talent platform, higher profitability in contract development, and global IP expansion
Continuously expand the number of active projects through reasonable cumulative forecasting based on department-by-department hiring plans and projected turnover rates. In FY2026 (ending March 2026), the company achieved 10,339 projects (up 958 projects year-on-year). In addition to IT companies and web service providers, the company will promote expansion into non-entertainment industries (corporate DX, UI/UX, etc.).
Against a backdrop of increased corporate investment in digital initiatives, the company aims to increase orders and expand project scale, while pursuing improved profitability through more efficient use of development resources. It will strengthen the accumulation of recurring revenue from maintenance, operations, and Lab-type Development. In FY2026 (ending March 2026), segment profit was ¥870 million (down 4.8% year-on-year), a slight decline.
The company will incorporate the sales plan for its own title scheduled for release by subsidiary Dragami Games in FY2027 (ending March 2026) to drive a recovery in game sales revenue. It will also continue expanding licensing partners both domestically and overseas by leveraging owned IP such as the "Mesaiya" brand. In FY2026 (ending March 2026), revenue fell sharply to ¥926 million (down 36.9% year-on-year), making recovery an urgent priority.
Under a policy of paying dividends based on either 20% of net income attributable to owners of the parent or 5% of shareholders' equity, whichever is the standard, the company paid ¥62 per share in FY2026 (ending March 2026), a significant increase from ¥42 in the previous fiscal year, and forecasts a further increase to ¥68 per share in FY2027 (ending March 2026). The dividend payout ratio is expected to rise from 28.2% (FY2026, ending March 2026) to 39.6% (FY2027 forecast, ending March 2026).
Last updated: July 19, 2026