Ubiteq, INC.

Business Details

In addition to hardware product development and production of sensor-equipped communication terminal devices (such as the Car-Sharing Onboard Device), the segment provides server/web application development, cloud services, and IoT infrastructure construction, operation, and maintenance services. It develops solutions that integrate hardware, software, and networks, and has strengthened its collaborative framework with ORIX Auto Corporation. Under the new three-year plan (FY2026 (ending June 2026) to FY2028 (ending June 2028)), it is positioned as the core segment during the SaaS service growth phase.

Recent Overview

Strong performance of D-Drive and Work Mate drove cumulative Q3 net sales of ¥738 million and segment profit of ¥188 million

During the cumulative nine-month period of FY2026 (ending June 2026) (July 2025 to March 2026), sales of "D-Drive" and "Work Mate" progressed favorably, achieving net sales of ¥738 million (up 24.7% year on year) and segment profit of ¥188 million (a substantial improvement from ¥8 million in the same period of the prior year). This represents a profit improvement of approximately ¥180 million from the segment profit of ¥8 million in the same period of the prior year, with the expansion of SaaS service sales contributing significantly to the improvement in the earnings structure.

Key Products

Growth Drivers

• Expansion of sales of D-Drive's alcohol interlock functionality: orders have expanded rapidly amid demand driven by the revised Road Traffic Act, supported by strengthened collaboration with ORIX Auto
• Regulatory tailwind for Work Mate: the June 2025 revision of the Industrial Safety and Health Regulations made heatstroke prevention measures mandatory for all business operators, steadily increasing installations and inquiries
• Expansion of alcohol check management system integrations: sales channels have diversified through integrations with Suzuyo Shinwart's "Asa Repo" and PI-R Corporation's "Alkiller NEX"
• Concentrated investment under the new three-year plan (FY2026 (ending June 2026) to FY2028 (ending June 2028)): positioned as the SaaS service growth phase, with management resources concentrated on achieving operating profitability and improving cash flow
• Creation of a third growth pillar through utilization of accumulated proprietary service data: development of new revenue sources is being promoted as a basic policy of the new three-year plan

Risks

• Dependence on specific customers for revenue: sales concentration risk exists with respect to Sekisui House, Ltd. and Sumitomo Riko Company Limited, among others
• Dependence on collaboration with ORIX Auto Corporation: the main channel for expanding D-Drive sales is concentrated in collaboration with this company, and changes in the relationship could affect performance
• An impairment loss of ¥289 million on fixed assets was recorded in the prior consolidated fiscal year, indicating that the risk of impairment to IoT Business assets has materialized in the past
• The segment has only just turned profitable after five consecutive fiscal years of operating losses, and is being asked to accelerate growth at a stage where the material events related to going concern assumptions have not yet been resolved
• Full-year earnings guidance for FY2026 (ending June 2026) has not been determined, leaving uncertainty regarding the earnings outlook for the second half