Bewith, Inc.

Business Details

A single-segment company built on two pillars: providing Contact Center & BPO Services and developing/externally selling its proprietary cloud PBX "Omnia LINK (Cloud PBX)" system. The company positions the finance, information & communications, and retail/distribution industries as its priority strategic areas (Smart Life domain). Full outsourcing accounts for roughly two-thirds of revenue, providing a one-stop service from business planning and design through training and operation. As of the end of FY2026 (ending May 2026), the company operated 16 sites nationwide with 6,660 booths. In May 2026, it made Malaysia's Radiant Communication Sdn. Bhd. a consolidated subsidiary (acquiring an 85% equity stake), beginning its overseas expansion.

Recent Overview

Revenue declined slightly but profit improved substantially; overseas expansion began with the Malaysian subsidiary

In FY2026 (ending May 2026), revenue was ¥36,322 million (down 0.3% year on year), a slight decline, but efforts to optimize total booth capacity across sites and curb the indirect labor cost ratio bore fruit, resulting in substantial profit improvement: operating profit of ¥1,167 million (up 9.1%), ordinary profit of ¥1,181 million (up 17.6%), and net profit of ¥579 million (up 27.9%). While reduced work volume on a specific public-sector project was a factor behind the revenue decline, new project wins progressed in the finance, information & communications, and retail/distribution industries. External sales of Omnia LINK continued to grow strongly, with license count reaching 5,721 (up 28.3% year on year) and ARR reaching ¥1.47 billion (up 37.8%). On May 29, 2026, the company made Malaysia's Radiant Communication Sdn. Bhd. (acquisition cost of ¥1,373 million, 85% equity stake acquired) a consolidated subsidiary, beginning its expansion into the ASEAN market. Goodwill of ¥684 million (provisional value) was recorded. For FY2027 (ending May 2027), the first year of the new medium- to long-term management plan, the company forecasts revenue of ¥38,300 million and operating profit of ¥1,600 million.

Key Products

Growth Drivers

• Continued expansion of Omnia LINK external sales license count and ARR (5,721 licenses and ARR of ¥1.47 billion at the end of FY2026 (ending May 2026), up 28.3% and 37.8% year on year, respectively)
• Localized expansion of Omnia LINK into the ASEAN market leveraging the Malaysian subsidiary Radiant Communication Sdn. Bhd., and provision of a comprehensive AI contact center solution through integration with the company's in-house developed AI agent "KeyAI"
• Capturing regulatory-driven demand such as asset management customer support and BPO for new lease accounting standard compliance in the finance industry
• Expansion of generative AI-related operations (identity verification screening, help desks) in the information & communications industry
• Transition to a BPM (Business Process Modernization) model: establishing a new revenue structure through high value-added creation via AI agents and migration to a transaction-based billing model
• Maintaining profit margin improvement effects through reduction of the indirect labor cost ratio and optimization of total booth capacity across sites, and promoting operational process efficiency through AI utilization
• Winning new projects through strengthened consulting-type services that provide end-to-end support for AI implementation

Risks

• Ongoing revenue decline pressure from reduced work volume on specific public-sector projects (requiring sales activity to win replacement new projects)
• Increasing difficulty securing personnel and rising labor costs due to a tightening labor market (a supply-side constraint risk)
• Impairment risk on goodwill (¥684 million, provisional value) associated with the integration and overseas expansion of the Malaysian subsidiary Radiant Communication Sdn. Bhd., and the risk of additional consideration arising from earn-out provisions (up to MYR 9.5 million)
• Customer concentration risk with Tokyo Electric Power Company Energy Partner (15.0% of revenue) and Pasona Inc. (10.3% of revenue)
• Failure to meet the tradable share market capitalization requirement for Prime Market listing maintenance criteria (premised on maintaining the consolidated relationship with Pasona Group Inc.)
• Risk of a decline in retained earnings from continuing dividend payments at a payout ratio of 188.3% (FY2026, ending May 2026), which substantially exceeds net profit
• Increased financial leverage (equity ratio declining from 61.7% to 52.7%) due to the raising of ¥1,300 million in long-term borrowings to fund the acquisition of Radiant Communication Sdn. Bhd.