SystemSoft Corporation
7527・Standard Market・Information & Communication
Business
SystemSoft Corporation is a TSE Standard-listed IT services company founded in 1983. It has strengths in Web technology-based system development and has long provided System Development & Solution Services to customers in the real estate, information and communications, life and non-life insurance, and education sectors. It also offers SaaS such as RPA Solution Services and the SS Cloud Series (SaaS), aiming to accumulate stock-type revenue. In addition, it operates an Open Innovation Business handling DX promotion, open innovation, and FA consulting, but this business has been rapidly shrinking following the transfer of its main operations to TKP Corporation in February 2025. The group operates its business through a structure that includes six consolidated subsidiaries.
Business Model
In the core Technology Business, the company builds its revenue base on system development and outsourced services for clients in the real estate, telecommunications, life and non-life insurance, and education sectors, while accumulating SaaS subscription revenue through the SS Cloud Series (SaaS) and RPA Solution Services. In the Open Innovation Business, the company provides DX consulting, alliance services, and FA advisory services. Of the ¥1,373 million in net sales for FY2025 (ending September 2025), the Technology Business accounted for ¥1,047 million (76.3%).
Company Strengths
The company has provided System Development & Solution Services for many years in the real estate, information and communications, life and non-life insurance, and education sectors, with existing projects generally progressing smoothly. In FY2025 (ending September 2025), Apaman Network Co. (14.9%) and Mitsubishi Electric Software Co. (14.9%) emerged as major customers, forming a stable revenue base.
As of the end of FY2025 (ending September 2025), the equity ratio stood at 83.3%, with cash and cash equivalents of ¥3,242 million. Against total assets of ¥4,869 million, total liabilities were ¥515 million, indicating high financial soundness and a financial base that can be utilized as funding for M&A and investment activities.
The company successively made JPAX FUND Co., Ltd. a subsidiary in August 2025, Mom Create Co., Ltd. in September of the same year, and Wasabi Co., Ltd. and Green&Digital Partners in October of the same year. By acquiring SES and DX consulting capabilities from outside the company, it is agilely expanding its business scale and strengthening its competitiveness.
ENVALITH's Perspective
Performance Trend
Revenue for the interim period of FY2026 (ending September 2026) (October 2025 to March 2026) was ¥636 million (down 13.0% year on year), continuing the revenue decline, but the major structural change seen in the prior period has run its course following completion of the business transfer of the Open Innovation Business. Operating loss improved significantly to ¥75 million from ¥396 million in the same period of the prior year, and the Technology Business turned profitable with segment profit of ¥10 million. In terms of the external environment, expanding demand related to AI and DX has been a tailwind, while intensifying competition for engineer recruitment and rising personnel costs continue to exert cost pressure. The full-year forecast calls for revenue of ¥1,800 million and operating profit of ¥50 million, projecting a return to profitability, but the interim progress rate stands at 35.3% for revenue, while operating profit remains in a loss position, indicating a significant weighting toward the second half.
Growth Strategy
Accelerating expansion of the Technology Business through strategic M&A and the establishment of a new base in Kyushu
Through the consolidation of Wasabi Co., Ltd. and Green&Digital Partners as subsidiaries (acquisition cost of ¥230 million), the company acquired SES and DX consulting capabilities, expanding Technology Business net sales by 40.6% year on year to ¥602 million. As a subsequent event, the company has secured ¥893 million in acquisition funds and plans further M&A activity from May 2026 through September 2027.
Of the funds raised through the third-party allotment of new shares, ¥100 million is planned to be allocated to the establishment of a new base in Kyushu. The planned disbursement period is set from July 2026 through September 2027, with the aim of geographically expanding the revenue base of the Technology Business through region-focused customer development and talent acquisition.
Through the continued provision of SaaS offerings, including the SS Cloud Series (SaaS), and RPA Solution Services, the company seeks to expand stable recurring revenue that does not depend on contract-based development. Leveraging the tailwind of expanding demand related to AI and DX, the company is promoting deeper penetration among existing customers as well as the acquisition of new customers.
Following the large-scale transfer of the Open Innovation Business conducted in the previous fiscal year, selling, general and administrative expenses were significantly reduced from ¥586 million in the same period of the previous year to ¥292 million. Through further reduction of company-wide expenses to ¥108 million (down from ¥309 million in the same period of the previous year), the company aims to achieve a turnaround to full-year operating profit of ¥50 million.
Last updated: July 17, 2026