4495.T

• Company Overview & Core Business

  • iCube Systems develops and provides mobile device management (MDM) software for corporate clients, founded in 2001, listed on the Tokyo Stock Exchange Growth Market.
  • Core product is CLOMO MDM, which allows enterprises to centrally manage corporate-issued mobile devices, supports remote locking and data erasure for lost/stolen devices, and enables bulk app installation across hundreds or thousands of devices.
  • The company has held the No.1 share position in Japan's domestic own-brand MDM market for 15 consecutive years, holding approximately 21% market share as of December 2025.

• Core Competitive Advantages

  • High security qualification: CLOMO MDM was registered to the government's ISMAP cloud service list in 2024, meeting strict Japanese government security requirements; most competing MDM services are not yet ISMAP registered, creating a strong differentiator for public sector expansion.
  • Strong partner recognition: The company is certified as a Gold Partner in Google's Android Enterprise Partner Program, earning high evaluation from OS platform partners.
  • High customer retention: As of the end of the 2nd quarter of the 2026 June fiscal year, annual customer retention rate is 97.6%, equal to a monthly churn rate of approximately 0.2%. Low churn is supported by an in-house customer success team that conducts regular customer check-ins and training.
  • Large existing customer base: The company serves more than 9,000 corporate clients, providing a foundation for cross-selling new products like PC asset management.

• Recent Operational Milestones

  • The 3-year transition period for migrating NTT Docomo Group's OEM MDM service to the company's Anshin Manager NEXT concluded in March 2026. Strong last-minute migration demand is expected to boost customer growth in the 4th quarter and contribute to revenue in the next fiscal year.
  • The company acquired PC security product developer Onebe Inc. (ワンビ社) in the previous fiscal period to enter the PC asset management and information security market, expanding its service lineup and go-to-market channels.

• Shareholder Return Policy

  • The company introduced a shareholder benefit system starting from the 2025 June fiscal period, and has paid dividends consistently since listing. Starting this fiscal year, it added an interim dividend.
  • The company revised its full-year dividend upward from the initial forecast of 34 yen to 36 yen per share, for an expected payout ratio of 25.0%. The company is currently prioritizing top-line growth and growth investment, so it does not disclose a target payout ratio, but will continue to implement shareholder returns in balance with business growth.

• For the full 2026 June fiscal year, consolidated guidance is maintained at 4.5 billion yen in revenue and 1.1 billion yen in operating profit. Through the first half (first two quarters), revenue progress is 47% of the full-year forecast, and operating profit progress is 61% of the full-year forecast, which is broadly in line with the initial plan (the higher operating profit progress reflects the company's cost structure that is weighted to the second half of the year).
• Three years ago, the company set a medium-term target of 5.0 billion yen in revenue for the 2026 June fiscal year. The current 4.5 billion yen forecast is set as a highly achievable base case, but the company will continue to actively pursue M&A opportunities to reach the 5.0 billion yen target by the end of the fiscal year. A new medium-term target will be shared after the full-year 2026 June fiscal results are released.
• The domestic MDM market is currently approximately 20 billion yen in size and is growing at an annual rate of around 10%. Expanding into the broader PC asset management market increases the company's total addressable market to 70 billion yen.
• The company has a medium-term target of reaching 40% share in Japan's domestic own-brand MDM market, and will pursue this growth via its partnership with the NTT Docomo Group.
• The company expects growing customer demand for unified management of both mobile devices and PCs, driven by the popularity of remote work and mobile PCs, which aligns with its expansion into the PC management market.

The company operates two main segments: 1. CLOMO Business (MDM): This is the core business segment, contributing the vast majority of total revenue. For the 2026 June fiscal year, the full-year total consolidated revenue forecast is 4.5 billion yen, which is entirely driven by this core MDM business at the current stage. 2. Investment Business: This segment centers on CVC investment activities, with the main purpose of exploring M&A opportunities that can generate synergy with the existing core business. No separate absolute financial figures or revenue contribution percentages are disclosed for this segment in the call. 3. New PC Asset Management Business: After acquiring Onebe Inc. as a subsidiary in the previous fiscal period, TRUST DELETE and other PC security product revenue from this acquisition has been added to consolidated results. This segment is still in the early expansion stage, and no separate revenue contribution percentage is disclosed.

• High OEM dependency risk was raised by investors; the call does not disclose additional details of risk mitigation or specific operational failures related to this dependency in the provided transcript.
• The core MDM market has limited ability to differentiate product functionality from competitors, as all MDM products are developed based on information provided by OS manufacturers like Apple and Google. The company mitigates this by focusing on support reliability and security trust, but it remains a structural market risk.
• When using the company's secure data erasure functionality, data cannot be restored from the device itself after erasure is completed, which creates a business risk if enterprises do not maintain independent backups of their data; the company notes that data recovery is only possible if the enterprise maintains separate backups outside the device.

Q: What are your differentiation points in the PC asset management market, where there are already multiple existing players?

A: Historically, most enterprises managed mobile devices via MDM and PCs via separate asset management software, but we expect demand for unified management of both mobile and PC devices will grow going forward. We have built our core expertise in managing mobile devices that are regularly taken outside of corporate offices, so our strengths include cloud-based multi-OS management and secure remote management regardless of location. This mobile management expertise is highly compatible with PC management amid the widespread adoption of remote work and mobile PCs. Rather than directly competing with existing players, we aim to expand into this new market as a unified device management platform. We currently have over 9,000 existing mobile MDM customers, nearly all of which also use PCs, so we can cross-sell our subsidiary Onebe's PC management services to our existing customer base. We do not have a specific current market rank, but we aim to reach a top-tier position going forward.

Q: How irreversible is the data erasure provided by your service, and can data be restored if a lost device is recovered after erasure?

A: Our CLOMO Advanced Wipe service, secured by TRUST DELETE, is provided by our subsidiary Onebe. It complies with Japanese Ministry of Internal Affairs and Communications guidelines, uses a specialized overwriting process that makes data unrecoverable with standard restoration tools, so data cannot be restored from the device itself even if the device is recovered. If the enterprise wants to reuse the device, they can reinitialize and reconfigure it for use, and any restored data will need to come from separate backups that the enterprise maintains outside of the device.

Q: How do you expect your sales mix to change as you expand into new areas like PC asset management in the future?

A: The acquisition of Onebe has added TRUST DELETE revenue to our consolidated results, and we are already pursuing shared sales channels and cross-selling between our two businesses. However, our core CLOMO MDM business is still in a growth phase with ongoing investment to accelerate OEM sales, and we are still evaluating multiple options for new M&A and new business lines. As such, we cannot disclose a specific future business portfolio forecast at this time.

Q: What is your target for MDM market share growth?

A: We have a medium-term target of reaching 40% share in the domestic own-brand MDM market. As of December 2025, we hold approximately 21% share after 15 consecutive years as the market leader. We are working to grow sales and expand share via our partnership with the NTT Docomo Group, but we have not set a specific target year for reaching 40% share.

Q: Can you share your churn rate and net retention metrics?

A: As of the end of the 2nd quarter of the 2026 June fiscal year, our annual customer retention rate is 97.6% (calculated based on churn over the prior 12 months), which translates to a monthly churn rate of approximately 0.2%, so churn remains very low. The most common reason for churn is when an enterprise changes mobile carriers and switches to the MDM product tied to the new carrier; carrier changes do not happen frequently, so churn is inherently low. Our in-house customer success team, which conducts regular customer check-ins and training, also supports high retention. We do not disclose a specific net retention rate metric at this time.