Ligua Inc.

Business Details

Targeting orthopedic clinics nationwide as its primary customers, the company provides one-stop services across five categories: Software, Equipment & Consumables, Consulting, Billing Agency, and Health Support (IFMC.). In response to the industry-wide challenge of declining judo therapy (bone-setting) medical expense revenue, the business supports orthopedic clinics' profitability improvement through expansion of self-pay treatment menus and management support. In FY2026 (ending March 2026), the company rolled out a direct sales support project for IFMC. Products starting in the second half; although the number of adopting clinics increased, sales declined 4.0% year on year due to a decrease in additional orders.

Recent Overview

Sales declined 4.0% due to a decrease in additional IFMC. orders, while operating loss widened

In FY2026 (ending March 2026), Wellness Business sales were ¥1,774 million (down 4.0% year on year), and operating loss was ¥37 million (compared to a loss of ¥29 million in the prior year). Starting in the second half, the company rolled out a project in which its employees visit orthopedic clinics directly to support IFMC. sales, increasing the number of adopting clinics; however, Health Support sales fell sharply by 19.8% year on year due to a decrease in additional orders from existing adopting clinics. On the other hand, Consulting sales grew 11.2% due to the start of AI consulting and the generation of M&A brokerage fees, and Billing Agency sales also grew 6.4% due to an increase in the number of members.

Key Products

Growth Drivers

• Continuation of the direct support project for IFMC. sales, increasing the number of adopting clinics and securing additional orders from existing adopting clinics
• Expansion of new revenue sources with high gross margins, such as AI consulting and M&A brokerage fees
• Increase in membership and accumulation of recurring revenue through new customer acquisition for billing agency services
• Development and rollout of BtoB IFMC. processing business and consumer products through collaboration with other companies
• Stable sales of equipment and consumables capturing the need for expansion of self-pay treatment menus at orthopedic clinics

Risks

• Continued decline in additional orders from adopting clinics in Health Support (IFMC.) (FY2026 (ending March 2026) sales down 19.8% year on year)
• Deterioration of the orthopedic clinic industry overall due to the long-term declining trend in judo therapy medical expense revenue
• Structural decline in software sales following the transfer of the "Ligoo POS & CRM" and "Reception ONE" businesses (down 8.5% year on year)
• Risk of expanding losses due to increased selling, general and administrative expenses associated with aggressive hiring of sales personnel
• Risk of reduced recoverability of deferred tax assets (income tax adjustment of ¥89 million recorded in FY2026 (ending March 2026), with the deferred tax asset balance decreasing by more than ¥90 million year on year)