ibis inc.

Business Details

A proprietary product segment centered on the development and operation of the mobile painting application "ibisPaint." It supports all major devices—iOS, Android, Windows, and Mac—and is deployed across more than 200 countries and regions worldwide. Revenue sources consist of three pillars: app advertising (via SSPs), subscription billing (monthly/annual), and one-time paid apps. In the first quarter of FY2026 (ending December 2026), the segment recorded revenue of ¥809 million (up 20.7% year on year) and segment profit of ¥451 million (up 26.5% year on year), clearly marking a shift toward a revenue structure in which subscription billing surpasses app advertising.

Recent Overview

Subscription billing revenue exceeded advertising revenue for the first time, clearly stabilizing the revenue structure

In the first quarter of FY2026 (ending December 2026), subscription billing revenue of ¥416 million (up 69.3% year on year) exceeded app advertising revenue of ¥303 million (down 14.6% year on year) for the first time. The new advertising investment model introduced in late December 2025 proved effective, with the net increase in subscriptions reaching 50,368—an all-time quarterly high. The number of premium members reached 448,008 (up 63.5% year on year). On the other hand, app advertising revenue declined due to fluctuations in the advertising market and a decline in eCPM. On March 31, 2026, a major update to Ver.14.0.0 was implemented, adding professional-oriented features such as CMYK output.

Key Products

Growth Drivers

• Rapid expansion of subscription billing: achieved a quarterly net increase of 50,368 (an all-time high) through the new advertising investment model and contract promotion measures, expanding the number of premium members to 448,008 (up 63.5% year on year) and shifting to become the main pillar of revenue
• High growth in overseas revenue: overseas subscription billing revenue surged 82.5% year on year, raising the overseas revenue ratio from 74.0% to 78.2%
• Expansion of user base through enhanced professional features: added printing/publishing support features such as CMYK output and monochrome 2-tone output in Ver.14.0.0, strengthening appeal to the professional market
• Continued expansion of cumulative downloads: reached 537.91 million as of the end of March 2026 (up 14.9% year on year), with a large user base of 40 million MAU forming the foundation for monetization
• Continuation of organic growth strategy: maintained a segment profit margin of 55.7% while sustaining the advertising cost efficiency approach adopted since FY2024 (ended December 2024), preserving a highly profitable structure
• Promotion of continued usage and improved subscription conversion rates through enhanced learning content such as the official YouTube channel

Risks

• Risk of soft advertising market conditions and eCPM decline: app advertising revenue declined 14.6% year on year amid changes in ad delivery algorithms, with structural downward pressure on revenue continuing
• Platform dependency risk: revenue concentration on Google LLC and Apple Inc. continues, and policy changes or fee revisions by either company could directly affect performance
• Foreign exchange risk: with an overseas revenue ratio as high as 78.2%, yen appreciation could reduce yen-denominated revenue (in this first quarter, yen depreciation contributed ¥5 million in foreign exchange gains)
• Intensifying competition risk: risk of user attrition due to feature enhancements and price competition from competitors in the mobile painting app market
• Risk related to securing and retaining development talent: intensifying competition for engineers with advanced image processing and AI technology skills could affect the pace of product development