ENVALITH
株式会社デジタリフト logo

DIGITALIFT Inc.

9244・Growth Market・Services

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株式会社デジタリフト logo
DIGITALIFT Inc.9244

Business

Digitalift Inc. has set forth the vision of "facilitating customer decision-making," and provides an Integrated Digital Marketing Business by flexibly combining two areas—the advertising/consulting services domain and the brand/media services domain—to match customer needs. Founded in 2012, the company listed on the TSE Growth Market in 2021. It has made meyco Inc. and Webcocolo Inc. consolidated subsidiaries, expanding the range of services offered as a group. Its main customers are domestic companies across the board; in the previous fiscal year, Hakuhodo DY Media Partners accounted for 19.5% of net sales, but in the current fiscal year this fell below 10%, reflecting progress in customer diversification.

Business Model

In the Advertising & Consulting domain, the company provides performance-based advertising and consulting services, while in the Brand & Media domain it develops owned media and content initiatives. By providing both domains consistently in-house, the company achieves higher customer unit prices through cross-selling and builds long-term relationships. Revenue, gross profit, operating profit, and ordinary profit serve as the main KPIs, and the company manages its business portfolio with an emphasis on improving profitability (gross margin).

Company Strengths

Established a structure to provide both advertising/consulting and brand/media domains in a fully integrated manner within the company. By sharing and accumulating expertise from both domains internally, the company enhances the reproducibility of successful case studies, achieving higher customer unit prices and strengthened competitiveness through cross-selling.

In FY2025 (ended September 2025), the company advanced a portfolio shift toward higher-profitability business domains and cost optimization. Gross profit increased 48.4% from ¥762,858 million to ¥1,131,900 million, while operating profit achieved a substantial improvement of 453.7%, rising from ¥33,861 million to ¥187,494 million.

Made meyco Inc. a consolidated subsidiary in January 2023 and Webcocor Inc. a consolidated subsidiary in January 2025. The company recorded income of ¥146,398 million from the acquisition of subsidiary shares associated with the consolidation of Webcocor, and continues to expand its group business foundation and improve profitability through M&A.

ENVALITH's Perspective

The 34.7% gross profit margin for the first half of FY2026 (ending September 2026) represents a notable achievement, improving approximately 10 percentage points year-on-year, but the client portfolio review may include temporary effects. Against the full-year earnings forecast (revenue of ¥4,321 million, operating profit of ¥210 million), the first-half progress rate stood at 40.8% for revenue and 57.1% for operating profit, with profitability tracking well. Whether the gross margin level can be maintained amid continued increases in SG&A expenses in the second half will be the deciding factor in the assessment.

Revenue for the first half of FY2026 (ending September 2026) was ¥1,763 million (up 3.0% year-on-year), a relatively low growth rate given that Japan's internet advertising expenditure continued to grow strongly, up 10.8% year-on-year in 2025, as a market environment. The profitability-focused portfolio review has had the effect of restraining revenue scale expansion, and it will be necessary to assess the scenario for a medium- to long-term recovery in revenue growth.

The equity ratio improved to 37.1% from 32.0% at the end of the previous fiscal year, and net assets also increased to ¥835 million (from ¥778 million at the end of the previous fiscal year). On the other hand, cash and deposits decreased by ¥87 million to ¥1,379 million (from ¥1,466 million at the end of the previous fiscal year), mainly due to repayment of long-term borrowings (¥179 million). Short-term borrowings of ¥500 million remain outstanding, and the degree of financial flexibility is limited when compared against operating cash flow (¥113 million). The continuation of no dividend (forecast annual dividend of ¥0) may also affect investor evaluation.

Growth Strategy

Aiming to expand the scale of profitability through three pillars: strengthening cross-selling, efficiency improvement through AI utilization, and active use of M&A

Structurally raise the gross profit margin through profitability-focused project selection and a review of the client portfolio. A gross profit margin of 34.7% (versus 24.9% in the same period of the previous year) was achieved in the first half of FY2026 (ending September 2026), and the goal is to maintain and improve this on a full-year basis.

Streamline business processes through the active introduction of AI tools, aiming to reduce cost of sales and improve productivity. In the first half of FY2026 (ending September 2026), cost of sales was reduced by ¥133 million year on year, and continued efforts are being promoted.

As each group company actively pursues new customer acquisition, cross-selling across the three service areas to existing customers is being strengthened to increase per-customer revenue and retention rates. In the first half of FY2026 (ending September 2026), net sales increased only 3.0% year on year, and accelerating sales growth remains a challenge.

Expand service areas and the customer base through the consolidation of subsidiaries such as Webcocor Inc. In financing activities cash flow, an expenditure of ¥17 million occurred for the acquisition of subsidiary shares not accompanied by a change in the scope of consolidation, and the reorganization of capital relationships within the group is also underway.

Last updated: July 17, 2026