TRaaS On Product Inc.
6696・Growth Market・Electric Appliances
Business
TRaaS on Product Corporation is an IoT solutions company founded in 1995 and listed on the Tokyo Stock Exchange (currently the Growth Market) in 2017. With "SaaS services originating from things" at the core of its management strategy, the company operates three segments: TRaaS Business (monthly SaaS subscriptions for digital signage, AI energy conservation, store DX, etc.), Order-Based Product Business (vertically integrated development and manufacturing of IoT products such as STB (Set-Top Box)), and Technical Service Business (Contracted System Development & Maintenance Service and Engineer Dispatch Service). Its main customers are BtoB corporations such as Kaga Electronics, Cross Value, dinos, and GAP Corporation. In August 2025, the company made Axto East Japan Corporation a wholly owned subsidiary, gaining a customer network totaling 1,500 companies. The company is moving away from mere hardware sales and is promoting a structural shift toward recurring subscription-based service businesses.
Business Model
Revenue is structured across three layers: ① SaaS monthly subscription fees from the TRaaS Business (CELDIS, Tenpo no Hoshi, AIrux, etc.), ② IoT product development and delivery (STB, etc.) from the Order-Based Product Business, and ③ engineer dispatch and contracted development from the Technical Service Business. Hardware is manufactured on a fabless basis, outsourced to Chinese EMS providers to achieve low costs. Software development costs are kept down through in-house development and horizontal deployment. The company expands sales channels through VAR partners and opens up new markets through collaborative arrangements with specialized partners.
Company Strengths
Through a vertically integrated model covering design, software development, contracted manufacturing, and operational maintenance in one continuous flow, the company has achieved high gross margins of 53.1% for the Order-Based Product Business and 48.2% for the TRaaS Business. In-house software development and its horizontal deployment across products contribute to reduced development costs.
Installation of the digital signage platform "CELDIS" at approximately 2,000 major mobile carrier shops was completed in the third quarter, and the full-year accumulation of monthly subscription revenue is now in full swing. This serves as a stable stock revenue base that contributes significantly to consolidated results.
The company holds patents for "Tenpo no Hoshi" (acquired September 2023) and "AIrux8" (acquired May 2024). In addition, by horizontally deploying firmware and middleware IP accumulated through STB (Set-Top Box), wearable devices, digital signage, and other products, the company is able to develop new products in a short period with a small team.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years has fluctuated significantly, moving from ¥405 million → ¥496 million → ¥311 million → ¥411 million → ¥486 million, and the full-year forecast for FY2027 (ending January 2027) is ¥535 million (up 10.3% year on year). However, Q1 revenue remained at only ¥74 million, representing a progress rate of approximately 13.8% against the full-year forecast. The main causes were a rebound decline from the prior-period's initial installation revenue for a major mobile carrier's shops in the TRaaS Business, and the completion of a large-scale development project in the Technical Service Business. While the gross profit margin of 37.9% shows a structurally improving trend, heavy SG&A expenses of ¥68 million resulted in an operating loss of ¥39 million. As external factors, yen depreciation, rising raw material costs, and geopolitical risks continue to act as downside risk factors.
Growth Strategy
Deepening the BtoB IoT market through SaaS monthly recurring revenue expansion, M&A utilization, and collaboration with specialized partners
Building on the completed installation at approximately 2,000 major mobile carrier shops, the company aims to continuously accumulate monthly recurring revenue. Following the emergence of a rebound decline in initial installation revenue from Q1 of FY2027 (ending January 2027) onward, the focus is on whether monthly recurring revenue can function as the primary revenue source.
The AI-based power reduction solution "AIrux8" is being evolved into a DX solutions platform that leverages AI to solve customer challenges, with a collaborative framework being built with specialized partners. Building on the completion of installation at JA Yamanashi Kosei Ren facilities in March 2026, the company aims to expand into the medical and welfare fields.
For "Tenpo no Hoshi," a DX product for distribution and retail stores, the company is promoting expansion into new overseas markets beyond its current countries of deployment, as well as domestic expansion. Development is underway in Q1 of a "Customer Review App" (an add-on feature to the existing member app) that allows direct collection of product evaluations from store visitors.
Leveraging the customer network acquired through making Akusuto East Japan Co., Ltd. a wholly owned subsidiary, the company is promoting cross-selling of IoT products and solution deployment to restaurant customers against the backdrop of growing inbound demand. In Q1, this was confirmed to have contributed as a factor in revenue growth for the Order-Based Product Business.
Last updated: July 17, 2026