E-Guardian Inc.
6050・Prime Market・Services
Internet Security Business (Single Segment)
The sole business segment of a comprehensive internet security company whose strength lies in the "hybrid of AI and people"
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (cumulative first half of FY2026, ending March 2026) | ¥5,464 million | ¥5,868 million (first half of FY2025, ending March 2025) | ↓ |
| Operating profit (cumulative first half of FY2026, ending March 2026) | ¥567 million | ¥929 million (first half of FY2025, ending March 2025) | ↓ |
| Operating margin (cumulative first half of FY2026, ending March 2026) | 10.4% | 15.8% (first half of FY2025, ending March 2025) | ↓ |
| Ordinary profit (cumulative first half of FY2026, ending March 2026) | ¥590 million | ¥933 million (first half of FY2025, ending March 2025) | ↓ |
| Net income attributable to owners of parent, interim (cumulative first half of FY2026, ending March 2026) | ¥373 million | ¥607 million (first half of FY2025, ending March 2025) | ↓ |
| Interim net income per share (first half of FY2026, ending March 2026) | ¥32.22 | ¥52.64 (first half of FY2025, ending March 2025) | ↓ |
| Total assets (end of first half of FY2026, ending March 2026) | ¥13,382 million | ¥13,728 million (end of FY2025, ended March 2025) | ↓ |
| Equity ratio (end of first half of FY2026, ending March 2026) | 89.9% | 87.8% (end of FY2025, ended March 2025) | ↑ |
| Revenue (full-year forecast for FY2026, ending March 2026) | ¥12,009 million | ¥11,321 million (full-year actual for FY2025, ended March 2025) | ↑ |
| Operating profit (full-year forecast for FY2026, ending March 2026) | ¥1,604 million | ¥1,504 million (full-year actual for FY2025, ended March 2025) | ↑ |
Business Details
E-Guardian upholds "We Guard All" as its management philosophy, providing five integrated business lines: Social Support (post monitoring, customer support, eKYC), Game Support, Ad Process (advertising review), Cybersecurity (Vulnerability Assessment, WAF, Consulting), and Other (Hardware Debugging). Its major clients include TikTok Pte. Ltd. (revenue of ¥1,207 million, 10.7% of sales) and Mercari, Inc. (revenue of ¥1,570 million, 13.9% of sales), and it maintains a broad customer base of domestic and overseas internet service providers. In collaboration with parent company Change Holdings, the company aims to become a top domestic cybersecurity vendor.
Recent Overview
In the first half, revenue declined 6.9% and operating profit declined 39.0%, a significant decrease in both; the full-year forecast remains unchanged
In the first half of FY2026 (ending March 2026) (October 2025 to March 2026), the decline in revenue from existing Social Support monitoring clients and the completion of a large-scale Game Support project ordered in the prior first half weighed on results, leading to a significant decrease in revenue and profit: revenue of ¥5,464 million (down 6.9% year on year) and operating profit of ¥567 million (down 39.0% year on year). Selling, general and administrative expenses increased to ¥962 million from ¥898 million in the prior-year period, as recruitment of advanced talent in the AI strategy, sales, and marketing areas pressured profit. On the other hand, the Cybersecurity business was the only segment to post an increase in revenue (up 15.0% year on year) due to higher WAF sales. Although results fell short of the forecast for the cumulative second quarter, the full-year forecast (revenue of ¥12,009 million, operating profit of ¥1,604 million) was left unchanged, in anticipation of large-scale project orders in the second half and beyond, growth in new-area clients, and improvement in gross margin through AI implementation. As a subsequent event, the company absorbed its wholly owned subsidiary E-Guardian Tohoku Co., Ltd. through a merger effective April 1, 2026, in order to centralize and streamline the management of its resources.
Key Products
Growth Drivers
- Expanding demand for customer support for e-commerce/flea market sites and fintech identity verification operations
- Increased WAF sales (both cloud-based and software-based) in the Cybersecurity business and strengthened organizational capabilities through recruitment of advanced talent
- Improvement in gross margin through the establishment of the AI Strategy Division, which promotes AI implementation on a per-project basis
- Strengthened new-client development in new areas such as real estate and education through reorganization of the sales organization by service category
- Efforts to become a top domestic cybersecurity vendor through collaboration with the parent Change Holdings group
- Expansion of security demand across the market amid growing security risks associated with the spread of generative AI
Risks
- Risk of decline in existing-client revenue and completion of large-scale projects in Social Support monitoring operations and Game Support
- Risk of margin decline due to increased costs of recruiting advanced talent in the AI strategy, sales, and marketing areas (interim SG&A expenses increased 7.2% year on year)
- Risk of failing to achieve the full-year performance forecast if large-scale project orders and growth in new clients do not materialize in the second half (interim progress rate: 45.5% for revenue, 35.3% for operating profit)
- Risk of client concentration in TikTok Pte. Ltd. (10.7% of revenue) and Mercari, Inc. (13.9% of revenue)
- Risk of structural market contraction due to the absence of a major hit title in the domestic social game market
- Rising recruitment costs and difficulty securing talent due to a declining working population and shortage of IT personnel
- Risk of economic downturn due to overseas economic uncertainty and price increases stemming from US trade policy and geopolitical risks
Last updated: December 10, 2025