Goodpatch Inc.

Business Details

Forms project teams combining client company designers, providing comprehensive design support spanning UI/UX design, brand design, and business strategy design, primarily under quasi-mandate contracts. Covers a wide range of industries and business formats through a two-hub structure consisting of the in-house design department (168 employees) and the fully remote organization "Goodpatch Anywhere" (664 registered designers). Also integrates the creative and branding capabilities of the consolidated subsidiary Studio Details Inc., providing seamless support from strategy formulation through product development.

Recent Overview

Number of client companies remained at a record level, but monthly unit price fell 7.9% year-on-year due to the ending of spot projects

Cumulative revenue for the third quarter of FY2026 (ending August 2026) was ¥3,553 million (up 0.3% year-on-year), only a slight increase, while operating profit fell sharply to ¥380 million (down 29.5% year-on-year). The number of client companies remained at a record-high level of 64.7, and the number of valid business negotiations reached a record high in the second quarter; however, the ending and downsizing of spot projects such as commercial production and website renewals pushed the average monthly customer unit price down to ¥5,821 thousand (down 7.9% year-on-year), pressuring profitability. The number of in-house designers continued to grow through active recruitment, reaching 168 (up 12.0% year-on-year), while the company strengthened its efforts to acquire AI-related projects and advance its design-times-AI initiatives.

Key Products

Growth Drivers

• Rising demand for corporate UI/UX design driven by expanding DX investment
• Active acquisition of AI-related projects and promotion of the "Design x AI" strategy (establishing a position as an AI Driven Design Company)
• Increase in valid business negotiations through strengthened sales structure and marketing initiatives including external events (renewed record high in Q2)
• Expansion of resources through active recruitment of in-house designers (168 at the end of Q3 FY2026, ending August 2026, up 12.0% year-on-year)
• Expansion of provided value through integration of creative and branding capabilities with Studio Details Inc.
• Promotion of overall business growth through strengthened collaboration between the in-house design department and Goodpatch Anywhere

Risks

• Decline in average monthly customer unit price (down 7.9% year-on-year due to the ending and downsizing of spot projects) and deteriorating profitability
• Pressure on operating profit margin from rising personnel expenses and outsourcing costs associated with active recruitment of design talent
• Risk of design work substitution and transformation of service value due to advances in AI technology
• Risk of dependence on specific clients (business performance affected by the structure of continuation and expansion of large-scale projects)
• Decline in the number of active designers at Goodpatch Anywhere (58 in Q3 FY2026, ending August 2026, down 3.3% year-on-year)
• Risk of client companies curbing DX investment due to domestic and international economic uncertainty (US policy trends, geopolitical risk, yen depreciation, price increases)
• Risk of impairment of goodwill (¥313 million at the end of Q3 FY2026, ending August 2026)