E-Guardian Inc.
6050・Prime Market・Services
Business
E-Guardian, Inc. operates under the corporate philosophy of "We Guard All," providing one-stop internet security-related services. The business consists of five operations: Social Support (post monitoring, customer support, eKYC), Game Support (customer service, debugging, localization), Ad Process (ad review and operation outsourcing), Cybersecurity (Vulnerability Assessment, WAF, Consulting), and Other (Hardware Debugging). Major customers include e-commerce and flea market sites, social game companies, advertising agencies, and small-to-medium-sized enterprises, with net sales of ¥11,321 million in FY2025 (ending September 2025). In October 2023, the company became a consolidated subsidiary of Change Holdings, Inc., and it is promoting business expansion through group collaboration. It operates multiple operation centers both domestically and internationally, with overseas locations in the Philippines and Vietnam.
Business Model
The core Social Support business operates on a volume-based billing model tied to the number of posts visually inspected and processed, making it easier to secure a stable order backlog. Cybersecurity combines subscription-based sales of WAF with project-based revenue from vulnerability assessment and consulting. Through a "hybrid" operation combining AI-driven automated processing with human monitoring, the company achieves both quality and efficiency, maintaining a high retention rate as a BPO service that addresses diverse customer needs.
Company Strengths
Social Support revenue for FY2025 (ended September 2025) was ¥7,141 million (up 5.7% year on year), accounting for approximately 63% of total company revenue of ¥11,321 million. CS for e-commerce and flea market sites and Fintech identity verification operations grew, and revenue from new customers also increased. Revenue from the major customer Mercari expanded to ¥1,570 million (up 28.3% year on year).
At the end of FY2025 (ended September 2025), the equity ratio was 87.8% (improved from 85.4% in the previous period), with zero interest-bearing debt. Cash and cash equivalents stood at ¥10,986 million, accounting for approximately 80% of total assets of ¥13,728 million. Total liabilities were compressed to ¥1,675 million, providing financial flexibility that can be allocated to M&A and capital expenditure.
Cybersecurity (Vulnerability Assessment, WAF, Consulting) revenue for FY2025 (ended September 2025) was ¥939 million (up 4.0% year on year). Cloud-based WAF and consulting services grew, and revenue from new customers increased as a result of strengthened organizational capabilities through the hiring of a business head and sales head. Joint proposals with the Change Holdings group have also resulted in orders received, and the business is beginning to function as a growth area.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥11,752 million in FY2022 and declined for four consecutive periods, reaching ¥11,321 million in FY2025. In the cumulative interim period of FY2026 (ending September 2026), revenue was ¥5,464 million, a widening year-on-year decline of 6.9%. Operating profit declined for five consecutive periods from ¥2,273 million in FY2022, and the interim operating profit margin fell to 10.4% (versus 15.8% in the same period of the previous year). The decline in revenue was driven by a contraction in existing customers in the Social Support monitoring business and the conclusion of a large-scale Game Support project. On the cost side, an increase in SG&A expenses due to the hiring of highly skilled personnel pressured profits. Meanwhile, operating cash flow also slowed to ¥128 million (versus ¥296 million in the same period of the previous year), indicating a deceleration in the cash conversion of earnings. The full-year forecast maintains a projection of revenue and profit growth, with revenue of ¥12,009 million (up 6.1% year-on-year) and operating profit of ¥1,604 million (up 6.7% year-on-year); however, given the progress rate in the interim period, this forecast is premised on a sharp recovery in the second half.
Growth Strategy
Aiming to transform the earnings structure through three pillars: advancing AI in BPO, expanding the cybersecurity business, and developing new business domains and customer segments
The company established an AI Strategy Division to promote AI implementation on a project-by-project basis within existing client services. Combined with strengthened profitability management at each center, the initiative aims to improve gross profit margin. Efforts began during the interim period, but the profit margin improvement effect is expected to materialize in earnest from the second half onward.
Centered on growing sales of WAF (cloud-based and software-based), the company is hiring highly skilled personnel in sales and marketing and renewing its organizational structure. In the first half of FY2026 (ending September 2026), this segment achieved a 15.0% year-on-year increase in revenue, the only category to record growth, and continued expansion is expected. Through collaboration with the Change HD group, the company aims to become a top domestic cybersecurity vendor.
The sales organization was reorganized by service category, strengthening sales activities in new domains such as real estate and education. In the first half of FY2026 (ending September 2026), revenue from new customers increased year on year across all business segments. However, this has not yet been sufficient to offset the decline from existing customers, and accelerating the accumulation of new customers remains a challenge.
Effective April 1, 2026, the company completed the absorption-type merger of E-Guardian Tohoku Co., Ltd., achieving centralized management and optimal allocation of management resources as well as greater efficiency in decision-making processes. The company also revised the estimated useful life and restoration cost estimates in connection with the determination of the timing for vacating the Tachikawa and Koriyama centers (impact on interim operating profit: a decrease of ¥4 million).
Last updated: July 17, 2026