OBIC Business Consultants (4733): FY2025 Results Summary — Cloud Shift Drives 9.4% Sales Growth, Recurring Revenue at 83.9%

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

OBIC BUSINESS CONSULTANTS CO., LTD. (TSE Prime, Securities Code 4733), the developer of the “Bugyo” series of cloud business software, released its Full-Year FYE3/2026 results presentation dated April 22, 2026. Net sales rose 9.4% year on year to 51,400 million yen and operating profit rose 8.4% to 23,580 million yen, while profit increased 12.0% to 18,132 million yen. The recurring revenue ratio reached 83.9% of net sales, and ARR grew 12.6% year on year to ¥45.7 billion as the shift to cloud services continued.

Note: The company labels the fiscal year ended March 31, 2026 as “FYE3/2026” in its materials; this site classifies the most recent completed fiscal year as FY2025, and the tables below keep the labels as they appear in the source materials.

Consolidated Results (Full-Year FYE3/2026)

Net sales increased 4,416 million yen (up 9.4%) and gross profit increased 4,167 million yen (up 10.6%). The gross profit margin improved by 0.9 points, which the company attributes to an increase in the proportion of solution sales, which have relatively high profit margins, from 59% to 62% of total sales, as well as a decrease in outsourcing costs for instructor training. SGA expenses rose 2,330 million yen (up 13.2%), leaving operating profit up 1,836 million yen (up 8.4%). Ordinary profit rose 9.4%, helped by interest received of 365 million yen (50 million yen in Full-Year FYE3/2025) and dividends received of 1,204 million yen (1,182 million yen in Full-Year FYE3/2025). Profit rose 1,949 million yen (up 12.0%).

Item (Million yen)	FYE3/2025 Results	FYE3/2026 Forecast	FYE3/2026 Results	YoY Change	YoY (%)
Net sales	46,984	51,700	51,400	4,416	9.4
Gross profit	39,337	43,123	43,505	4,167	10.6
SGA expenses	17,593	19,123	19,924	2,330	13.2
Operating profit	21,744	24,000	23,580	1,836	8.4
Non-operating income and expenses	1,300	1,000	1,637	337	25.9
Ordinary profit	23,044	25,000	25,218	2,173	9.4
Profit	16,182	17,350	18,132	1,949	12.0

Segment Results (Breakdown of Net Sales)

Solutions sales rose 15.8% to 32,043 million yen, or 62.3% of net sales. Within Solutions, total cloud sales grew 20.8% to 31,351 million yen: Cloud (Core business) rose 26.4% to 21,758 million yen and Cloud (Bugyo Cloud Edge) rose 10.0% to 9,592 million yen, while on-premises solutions fell 60.1% to 692 million yen. The company notes that Bugyo i Cloud for SMEs, Bugyo V ERP Cloud for mid-sized and listed companies, and the Bugyo Cloud DX Suite all performed steadily, and that starting in Q4 the transition to the cloud accelerated slightly in anticipation of the end of support for Bugyo 11 (on-premises) in April 2027. Related products increased 13.7% to 4,766 million yen, with sales of other companies’ products linked with the Bugyo series up 299 million yen and an increase of ¥436 million due to the new pricing transition for IaaS model environment construction. Services declined 3.5% to 14,591 million yen, as the on-premises maintenance fee decreased by 553 million yen due to the cloud shift and guidance fee sales decreased by 34 million yen.

Category	FYE3/2025 (Million yen)	FYE3/2026 (Million yen)	YoY change (%)
Solutions	27,680	32,043	15.8
— Cloud total	25,943	31,351	20.8
— Cloud (Core business)	17,219	21,758	26.4
— Cloud (Bugyo Cloud Edge)	8,723	9,592	10.0
— On-premises	1,736	692	-60.1
Related products	4,191	4,766	13.7
Services	15,112	14,591	-3.5
— On-premises Maintenance fee	12,318	11,764	-4.5
— Other Services	2,794	2,826	1.2
Total	46,984	51,400	9.4

Key Recurring-Revenue Indicators

As of March 2026, ARR stood at ¥45.7 billion (¥40.5 billion a year earlier), up 12.6% year on year due to growth in cloud users, and cloud ARR grew 21.4% year on year. Cloud ARPU rose to ¥579 thousand from ¥534 thousand, driven by an increased weight of high-priced products, and the number of systems in operation reached 275K systems (including 147K Cloud & Cloud Edge systems), up from 258K a year earlier. The recurring revenue ratio was 83.9% of net sales versus 81.8% in the prior year, with recurring revenue of 43,104 million yen in FYE3/2026 and a recurring revenue CAGR of 18.7% from 23/03 to 26/03. The unearned revenue balance rose by 2.18 billion yen to ¥35.8 billion, as the impact of the long-term contract abolition has run its course, and the contract retention rate remained high at 99.4%.

FYE3/2027 Forecast

For FYE3/2027, the company plans net sales of 57,500 million yen (up 11.9%), operating profit of 26,500 million yen (up 12.4%), ordinary profit of 28,260 million yen (up 12.1%) and profit of 19,350 million yen (up 6.7%), assuming an effective corporate tax rate of 31.5%. By category, Solutions sales are planned at 39,915 million yen (up 24.6%), driven by the upcoming end of support for the on-premise Bugyo 11 in April 2027 and continued capture of new demand through expanded sales of Bugyo V ERP Cloud and increased market penetration of Bugyo Cloud Edge. Related products are planned at 4,471 million yen (down 6.2%), reflecting the falloff of revenue from IaaS model environment setup following the prior-year price revision, and Services at 13,114 million yen (down 10.1%) on a moderate decline in on-premise maintenance contract revenues due to the cloud shift. The company expects gross profit margin to remain roughly flat due to higher cloud costs (Azure usage fees), and SG&A expenses to rise on higher personnel costs, increased AI-/security-/cloud shift-focused advertising expenses, and strengthened exhibition activities. Full-year dividend income from listed REITs and interest income from time deposits and bonds is expected to total ¥1.7 billion.

Item (Million yen)	FYE3/2026 (Actual)	FYE3/2027 (Plan)	Increase/Decrease	YoY change (%)
Net sales	51,400	57,500	6,100	11.9
Gross profit	43,505	48,600	5,095	11.7
SG&A expenses	19,924	22,100	2,176	10.9
Operating profit	23,580	26,500	2,919	12.4
Non-operating income and expenses	1,637	1,760	122	7.5
Ordinary profit	25,218	28,260	3,041	12.1
Profit	18,132	19,350	1,218	6.7

Shareholder Returns

The dividend slide in the materials shows the annual dividend increasing from 111 yen in the previous year to 130 yen (interim 65 yen), shown for FY’27/3 in the dividend-per-share chart, with the dividend payout ratio expected to be 50.5%. The chart also notes that the fiscal year ended March 31, 2014 and the fiscal year ending March 31, 2019 were split 2-for-1 and are shown as retroactive to the split. In FYE3/2026, dividends paid amounted to 7,743 million yen according to the cash flow statement.

Business Strategy for FYE3/2027 / Topics

Under the theme “Expanding the Value of Bugyo in the Age of AI and Security,” the company lists five important strategies for FYE3/2027: (1) Up to Cloud in the Bugyo 11 series, (2) the Bugyo V ERP Cloud sales expansion strategy, (3) promoting the digitalization of peripheral operations using Bugyo Cloud Edge, (4) a sales expansion strategy utilizing expert channels, and (5) enhanced AI and security (AX). The Bugyo 11 series totals approximately 110K systems, of which Phase 1 (approximately 40K systems, products shipped from March 2020 to March 2023) reaches end of support at the end of April 2027. On security, the Bugyo Cloud series became the first domestic business ERP system to be registered to ISMAP, Japan’s security evaluation system for government cloud procurement, with registration completed by the end of June 2025. On AI, an AI assistant is built into Bugyo Cloud and Bugyo Cloud Edge, the Bugyo AI Agent New Lease Accounting Identification Cloud was released in August 2025 and the Bugyo AI Agent Consolidated Accounting Support Cloud was launched in December 2025, and the company plans to launch AI Cowork by the end of the year. The company was also selected under the 2026 KENKO Investment for Health Stock Selection for the first time and recognized as a 2026 Outstanding Organization of KENKO Investment for Health (White 500) for the second consecutive year.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.