ENVALITH
株式会社エムティーアイ logo

MTI Ltd.

9438・Prime Market・Information & Communication

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株式会社エムティーアイ logo
MTI Ltd.9438

Business

MTI Ltd. was founded in 1996 and is listed on the Prime Market of the Tokyo Stock Exchange. The group, comprising 20 consolidated subsidiaries and 6 affiliated companies, operates four segments: (1) the Content Business, which provides monthly subscription content for smartphones (video, music, security apps, etc.); (2) the Healthcare Business, which offers Cloud Yakureki for dispensing pharmacies, the women's healthcare app 'Lunaluna,' and the maternal and child health handbook app for municipalities 'Boshimo (Childcare DX)'; (3) the School DX Business, which provides the cloud-based school administration support system 'BLEND' for educational institutions; and (4) Other Businesses, which conduct the AI Business and Corporate DX Support Business. Major customers span a wide range, including telecom carriers such as NTT DoCoMo (33.6% of sales) and KDDI (12.7% of sales), dispensing pharmacies, municipalities, and educational institutions.

Business Model

The core of earnings is the BtoC Monthly Subscription Content Service handled by the Content Business (net sales of ¥17,314 million, operating margin of 24.7%). Leveraging this stable cash flow, the company is making upfront investments in the Healthcare Business (Cloud Yakureki, Boshimo, etc.) and the School DX Business (BLEND). Both growth businesses are stock-type businesses premised on long-term continuous contracts with medical institutions, local governments, and school corporations, with a structure in which revenue accumulates as the number of installations expands.

Company Strengths

The Content Business achieved net sales of ¥17,314 million, operating profit of ¥4,270 million, and an operating margin of 24.7% in FY2025 (ending September 2025). The number of paid members was maintained at 3.24 million (up 170 thousand from the end of the same period of the previous year), supported by expansion in membership for the security-related app 'AdGuard' and strong enrollment via carrier shop channels. This highly profitable business serves as a source of funds for growth investment.

The number of stores adopting Cloud Yakureki for dispensing pharmacies expanded significantly to 3,811 stores as of the end of September 2025 (up 1,283 stores from the end of the same period of the previous year). Collaboration with MEDIPAL HOLDINGS CORPORATION has contributed to accelerating adoption, and net sales of the Healthcare Business reached ¥6,676 million, up 21.8% year on year.

The School DX Business (Motivation Works) achieved net sales of ¥1,890 million (up 53.3% year on year) and operating profit of ¥550 million (compared with an operating loss of ¥66 million in the previous fiscal year) in FY2025 (ending September 2025), turning profitable with an operating margin of 29.1%. The cumulative number of schools adopting the cloud-based school affairs support system 'BLEND' reached 1,067 schools (up 292 schools year on year).

ENVALITH's Perspective

The Healthcare Business posted strong growth in the first half of FY2026 (ending March 2026), with net sales of ¥3,927 million (up 24.5% year on year), but fell into an operating loss of ¥253 million (versus a profit of ¥86 million in the same period of the prior year) due to increased system development costs for Pharmacy DX & Online Medical Consultation-related Services and Childcare DX, as well as the cost burden associated with "Lunaluna Mirai Support." While the expansion of Cloud Yakureki adoption continues, determining the timing of the transition to the investment recovery phase and identifying the break-even point are key issues for investment decision-making.

The full-year forecast for net income attributable to owners of the parent for FY2026 (ending March 2026) calls for ¥2,560 million to ¥2,840 million (down 24.8% to 16.6% year on year), representing a plan for a significant decline in profit. The main cause is the drop-off of the extraordinary gain from a consumption tax refund, etc. (¥806 million) recorded in the prior period; on an ordinary income basis, the forecast calls for a profit increase of 12.3% to 25.5%, indicating that the underlying business is on an improving trend. That said, operating cash flow for the first half was an outflow of ¥309 million (versus an inflow of ¥1,974 million in the same period of the prior year), and attention should be paid to cash flow trends, including the timing of corporate tax payments.

Ordinary income for the first half of FY2026 (ending March 2026) increased significantly to ¥2,063 million (up 19.9% year on year), but the main driver was a ¥310 million increase in equity-method investment gains, which rose from ¥92 million in the same period of the prior year to ¥403 million. The increase in operating income was limited to ¥39 million (up 2.4%), indicating that the pace of improvement in core business profitability remains modest. A close examination of the content and continuity of the equity-method investment gains is an important point in assessing the underlying strength of ordinary income.

Growth Strategy

Using content-business earnings as a funding source to cultivate stock-type businesses in Healthcare and School DX, establishing multiple stable earnings pillars

Leveraging the competitive advantage of its fully cloud-based, all-in-one service amid government-led promotion of school administration DX at the prefectural level, the company is expanding the number of schools using the service. As of April 2026, cumulative deployments reached 1,367 schools (an increase of 300 schools versus April 2025). The company is expanding its sales activities beyond private junior high and high schools, which had been its core base, to elementary schools, vocational schools, and public schools, aiming for earnings growth through both the accumulation of recurring monthly usage fee revenue and initial development revenue.

The number of stores using Cloud Yakureki continued to expand, reaching 4,458 stores as of the end of March 2026 (an increase of 647 stores versus the end of September 2025). The company aims to further expand deployment by strengthening partnerships with collaborators, while actively promoting cloud-based transformation support for dispensing pharmacies by combining multiple Pharmacy DX & Online Medical Consultation-related Services products, with the goal of improving revenue through higher revenue per customer and building long-term business relationships.

Against the external backdrop of government-led promotion of digitalization of maternal and child health information, the company is expanding the number of municipalities adopting the maternal and child health handbook app 'Boshimo' and promoting sales of multiple advanced Childcare DX services. 'Lunaluna Mirai Support' has entered into partnership agreements with Niigata Prefecture and Miyagi Prefecture, aiming for future commercialization through prefecture-wide free provision. Currently, the business is in an operating loss stage due to increased system development costs, and transitioning to an investment recovery phase remains a challenge.

Even after the sale of Video Market, the number of paid members for security-related apps such as 'AdGuard' continued to grow, keeping the overall number of paid members in the Content Business roughly flat at 3.18 million. Through cost control and reduced SG&A expenses, first-half operating profit reached ¥2,240 million (up 13.2% year on year), a significant increase, and the business continues to serve as an earnings foundation for the group as a whole.

Last updated: July 17, 2026