f-code Inc.

Business Details

The F-CODE Group is a single-segment company that provides DX support across two axes: the Marketing domain and the AI & Technology domain. It offers service groups including CX Improvement SaaS, Digital Marketing Support Service, AI & Technology Support Service, and Online School & Talent Education Service. Through aggressive M&A, the company creates cross-sell synergies by leveraging the strengths and customer bases of each group company, and continues to achieve high growth through expanding orders for technology, SaaS, and various professional services.

Recent Overview

Q1 FY2026 revenue up 61.6%; scope of consolidation continues to expand through ongoing M&A

In Q1 of FY2026 (ending December 2026), the company achieved revenue of ¥3,904 million (up 61.6% year on year) and operating profit of ¥785 million (up 38.6% year on year). During the quarter, the company executed the business transfer of the reskilling business and other operations from HIKIYOSE Co., Ltd., and made En place, AI ONE・ONE consolidated subsidiaries. As a subsequent event, on May 8, 2026, the company acquired Roombox Inc., which specializes in marketing support for the real estate industry, as a consolidated subsidiary at an acquisition cost of ¥432 million (voting rights ratio of 85.0%). Goodwill increased by ¥3,916 million from the end of the previous fiscal year to ¥15,871 million, and interest-bearing debt has also increased alongside the expansion of M&A activity. There is no change to the full-year earnings forecast (revenue of ¥14,500 million, operating profit of ¥3,300 million).

Key Products

Growth Drivers

• Continuous expansion of consolidated subsidiaries through an aggressive M&A strategy (three companies made consolidated subsidiaries during Q1 FY2026, with Roombox added as a subsequent event)
• Steady progress in orders for technology, SaaS, and various professional services
• Creation of synergies through cross-selling between services, leveraging the strengths and customer bases of each group company
• Continued expansion of the domestic DX market against the backdrop of remarkable progress in AI technology
• Provision of differentiated DX promotion services leveraging a CX data foundation built from over 1,000 client companies cumulatively
• Expansion of the addressable market through the development of industry-specific services, such as AI marketing models for the real estate industry

Risks

• Increase in interest-bearing debt (non-current bonds and borrowings of ¥10,472 million) and rising financial leverage due to aggressive M&A activity
• Impairment risk related to the goodwill balance of ¥15,871 million (50.1% of total assets)
• Declining trend in operating margin (23.5% in Q1 of FY2025 (ended December 2025) → 20.1% in Q1 of FY2026 (ending December 2026)): increase in management costs associated with M&A expansion
• Concerns over financial soundness due to a decline in the ratio of equity attributable to owners of parent (28.5% → 25.3%)
• Risk of retrospective revisions to financial results due to the finalization of provisional accounting treatment following M&A
• Rising recruitment costs and increased difficulty securing talented personnel due to intensifying competition for DX talent
• Risk of fluctuations in corporate marketing investment demand due to changes in the business climate