Bengo4.com (6027): FY2025 Results Summary — CloudSign Drives a 58.7% Jump in Operating Profit

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Note: Bengo4.com’s presentation labels the fiscal year ended March 31, 2026 as “FY3/2026”; this article follows this site’s convention of classifying the most recently completed fiscal year as FY2025, while keeping the fiscal-year labels used in the materials in the text, tables and charts below. Bengo4.com, Inc. reported FY3/2026 net sales of 16,288 million yen, up 15.7% year on year, and operating profit of 2,204 million yen, up 58.7%, with the company noting that results exceeded all plans. Both figures came in above the announced forecasts of 16,100 million yen and 2,000 million yen. EBITDA rose 46.9% to 3,186 million yen and net profit rose 43.9% to 1,510 million yen. For FY3/2027 the company targets net sales of 20.5 billion yen (up 25.9% YoY) and operating profit of 3,000 million yen (up 36.1% YoY).

Consolidated Results (Full-Year Actual)

The following table reproduces the “Summary for FY3/2026” slide, which compares the full-year actual results with the company’s announced forecast and with FY3/2025. Net sales exceeded the announced forecast by 1.2%, operating profit by 10.2% and net profit by 25.8%. The operating profit margin improved 3.6 points year on year to 13.5%. EBITDA is defined by the company as operating profit plus depreciation and amortization, goodwill amortization, stock-based compensation expense and equity gains (losses) of affiliated companies.

Item (Mil. Yen)	FY3/2026 Actual	FY3/2026 Announced Forecast	Actual / Forecast	FY3/2025 Actual	YoY
Net Sales	16,288	16,100	+1.2%	14,072	+15.7%
COGS	3,462	–	–	3,239	+6.9%
Gross Profit	12,825	–	–	10,833	+18.4%
SGA	10,620	–	–	9,443	+12.5%
EBITDA	3,186	3,000	+10.6%	2,169	+46.9%
Operating Profit	2,204	2,000	+10.2%	1,389	+58.7%
Operating Profit Margin	13.5%	12.4%	+1.1pt	9.9%	+3.6pt
Ordinary Profit	2,197	2,000	+9.9%	1,405	+56.3%
Net Profit	1,510	1,200	+25.8%	1,049	+43.9%

Results by Business

Bengo4.com presents its net sales split between the CloudSign electronic contract service and “Bengoshi.com and others”. On that basis CloudSign accounted for 8.8 billion yen of FY3/2026 net sales and Bengoshi.com and others for 7.5 billion yen, against 7.0 billion yen and 7.1 billion yen respectively in FY3/2025. Mikata Small Amount and Short Term Insurance Co., Ltd. and Japan Legal Network, Inc., which joined the Group during the fiscal year, are included in “Bengoshi.com and others”. On the dedicated CloudSign business slide, CloudSign net sales were 8,756 million yen with an operating profit margin of 17.1% on a management-accounting basis (company-wide costs allocated to the business), and a Rule of 40 score (net sales growth rate plus operating profit margin) of 42.7%. In the fourth quarter the company reported the highest-ever quarter-on-quarter increase in sales, excluding one-time sales increases due to M&A activities.

Business	Metric	FY3/2026	FY3/2025
CloudSign	Net sales (Bil. Yen)	8.8	7.0
Bengoshi.com and others	Net sales (Bil. Yen)	7.5	7.1
Total	Net sales (Bil. Yen)	16.28	14.07
CloudSign business	Net sales (Mil. Yen)	8,756	6,969
CloudSign business	Operating profit margin (management accounting)	17.1%	13.5%
CloudSign business	Rule of 40	42.7%	37.5%

Key Operating Indicators

Company-wide ARR (annual recurring revenue, calculated by multiplying monthly recurring revenue at the end of each period by 12) stood at 14.59 billion yen at the end of FY3/2026, with CloudSign ARR growing 20.5% year on year. CloudSign reported record-high new MRR and net MRR and record-high new acquisitions, exceeding the levels seen during the COVID-19 pandemic, and the number of contracts sent bearing an electronic signature and a timestamp surpassed 3.24 million in the fourth quarter at 3,246 thousand contracts. On the media side, Bengoshi.com had 5.891 million visitors per month as of March 2026 and 29,172 registered lawyers, which the company states is a 61% share of domestic lawyers. Zeirishi.com posted record-high quarterly net sales of 415 million yen in the fourth quarter, up 27.3% year on year.

Indicator	FY3/2026 Q4	FY3/2025 Q4
Company-wide ARR (Bil. Yen)	14.59	12.73
CloudSign ARR (Bil. Yen)	9.8	8.1
Bengoshi.com and others ARR (Bil. Yen)	4.8	4.6
Zeirishi.com net sales (Mil. Yen)	415	326

FY3/2027 Forecast

For FY3/2027 Bengo4.com targets net sales of 20.5 billion yen, EBITDA of 4,300 million yen, operating profit of 3,000 million yen and net profit of 2,000 million yen, each of which the company describes as a record. The operating profit target of 3,000 million yen and the 14.6% margin are shown on a “with M&A activities” basis; excluding the impact of Mikata Small Amount and Short Term Insurance Co., Ltd. and Japan Legal Network, Inc., which joined the Group during FY3/2026, the company shows operating profit of 3,200 million yen and a margin of 16.9%. Within the plan, CloudSign business net sales are targeted at 10,700 million yen with an operating profit margin of 22.0% and a Rule of 40 score of 44.2%. The company states that Legal Brain will make a full-scale contribution to business performance, that new products related to CloudSign are scheduled to launch, and that it aims for record highs in net MRR, new MRR and new acquisitions.

Item	FY3/2027 Target	FY3/2026 Actual	YoY
Net sales (Bil. Yen)	20.5	16.28	+25.9%
EBITDA (Mil. Yen)	4,300	3,186	+35.0%
EBITDA margin	21.0%	19.6%	–
Operating profit (Mil. Yen)	3,000	2,204	+36.1%
Operating profit margin	14.6%	13.5%	–
Operating profit excluding M&A activities (Mil. Yen)	3,200	–	–
Operating profit margin excluding M&A activities	16.9%	–	–
Net profit (Mil. Yen)	2,000	1,510	+32.4%
Rule of 40 (net sales growth rate + operating profit margin)	40.5%	29.2%	–

Shareholder Returns and Capital Allocation

On the “Investment Priorities” slide the company states that, at the current stage, which it describes as a growth phase for both the market and the Company, funds are prioritized for M&A and business investments, and that it will continue to consider policies that contribute to maximizing shareholder value, without excluding options such as dividends and share buybacks. The slide sizes M&A and business investment funds at 15-20 billion yen, built from cash and deposits on hand of approximately 4 billion yen, operating cash flow for the next 2-3 years of 5-10 billion yen and borrowing capacity of 10 billion yen, less working capital in 2-3 years of -5 billion yen and debt repayment of -1.5 billion yen. A dividend per share for FY3/2026 or FY3/2027 cannot be confirmed from the materials. Separately, the company raised the incentive grant rate for its employee stock ownership plan from 5% to 25% (25% for up to 10,000 yen and 5% for the portion exceeding 10,000 yen) and expanded the scope to include Group companies; the participation rate in the stock ownership association rose from 24.8% to 64.4%, approximately 2.6 times.

Balance Sheet

Net assets increased by 1,734 million yen, mainly reflecting an increase in retained earnings, and the capital-to-asset ratio rose 5.6 points to 53.2%.

Item (Mil. Yen)	FY3/2026 Q4	FY3/2025 Q4	YoY
Current Assets	8,525	6,604	+1,921
Cash and equivalents	5,199	4,171	+1,028
Fixed Assets	4,855	4,692	+163
Total Assets	13,381	11,296	+2,084
Current Liabilities	3,770	3,253	+517
Fixed Liabilities	2,400	2,604	-203
Net Assets	7,209	5,438	+1,734
Capital-to-Asset Ratio	53.2%	47.6%	+5.6pt

Growth Strategy and Topics

Bengo4.com positions its Legal Brain initiative, and in particular Legal Brain Agent, as an AI business that will begin contributing to performance in FY3/2027. Legal Brain Agent, which supports legal research work, was launched in May 2025 and is used in the legal departments of major financial institutions, large corporations and law firms; the company shows an index of its rapid growth rising from 100 in January 2026 to 180 in May 2026, described as a 1.3x increase in one month. The company sizes the potential market for business expansion through Legal Brain at 12.2 trillion yen for finance markets, 7.5 trillion yen for the corporate legal affairs and contract-related market, 3.5 trillion yen for the lawyer market and 1.2 trillion yen. On M&A, the two companies acquired in the past are reported to have delivered results after joining the Group: LIC (joined October 2023) recorded operating profit of 400 million yen in the current fiscal year against an EBITDA multiple relative to the acquisition price of 3.6x, while Bengo Kakumei (joined April 2024) posted current fiscal year ARR growth of +80% against an ARR multiple relative to the acquisition price of 1.5x. The company also reports a “BBB” rating from MSCI ESG Ratings, and had 638 consolidated employees as of March 31, 2026.

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.