# Digital Arts Inc.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第31期(2025/04/01－2026/03/31) (S100YKKS)
> Page: https://vizora.meequs.com/en/company/digital-arts
> Retrieved: 2026-09-30T21:06:53.292Z

## Company

Digital Arts, founded in 1995, is a company in Cybersecurity listed on TSE Prime. It has 279 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Digital Arts Inc. |
| Ticker | 2326 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/2326.T) |
| Listing | TSE Prime |
| Head office | 東京都千代田区大手町一丁目5番1号 |
| Representative (per filing) | 代表取締役社長 道具 登志夫 |
| Founded | Jun 1995 |
| Share capital | ¥713M |
| Employees (consolidated) | 279 |
| Average salary (parent only) | ¥7M |
| Fiscal year end | March |
| Website | www.daj.jp (https://www.daj.jp/) |
| Corporate number | 3010001096117 |
| EDINET | E05303 |
| Industries (Vizora) | Cybersecurity |

> Profile source: annual securities report (S100YKKS, filed 2026-06-25). As of filing

## Five-axis industry profile

Primary industry: Cybersecurity (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 57.5 | 20 |
| Profitability | 98.3 | 29 |
| Cash conversion | 83.3 | 27 |
| Efficiency | 1.7 | 29 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- Digital Arts brought in ¥10.8B in revenue.
- Out of every ¥100 of sales, about ¥44 is left as operating profit.
- Revenue changed +8.5% from the prior year, operating profit +5.1%.

## Company structure

- Segment revenue mix: Segment revenue breakdown is not disclosed
- Revenue → net income: ¥10835000000 → ¥3427000000
- Net income → operating cash flow: ¥3427000000 → ¥8381000000（difference ¥4954000000）
- Main uses of operating cash flow: CapEx ¥1260000000 / dividends ¥1219000000 / buybacks ¥1134000000
- Change in cash: ¥5131000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥10.8B |  |
| Operating income | ¥4.79B | Margin 44.2% |
| Net income | ¥3.43B | Margin 31.6% |
| Free cash flow | ¥7.12B |  |
| Employees (consolidated) | 279 |  |
| EPS | ¥254.45 |  |
| Diluted EPS | ¥249.02 |  |
| Book value per share | ¥1378.56 |  |
| Equity ratio | 66.1% |  |
| Shares outstanding | 14,133,000 |  |
| Treasury shares | 689,200 |  |
| Shareholders | 5,399 |  |
| Average salary (parent only) | ¥7M | Filing company only |
| Cash ratio | 82.8% | Cash ÷ revenue 213.0% |
| Vs. industry median margin | +29.8 pp | Cybersecurity |
| ROE | 19.2% | Derived from disclosed figures |
| ROA | 13.6% | Derived from disclosed figures |

## Notable figures

- FY2026, operating cash flow is 2.4× net income
- FY2026, cash is 83% of total assets
- FY2026, operating income keeps 44 per ¥100 of revenue

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥6825000000 | ¥10835000000 | +58.8% |
| Operating income | ¥2977000000 | ¥4791000000 | +60.9% |
| Operating margin | 43.6% | 44.2% | +0.6 pp |
| Employees | 295 people | 279 people | -5.4% |
| Cash and equivalents | ¥11382000000 | ¥23083000000 | +102.8% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 10,835 | 100.0% | S100YKKS |
| Cost of revenue | 3,334 | 30.8% | S100YKKS |
| Gross profit | 7,500 | 69.2% | S100YKKS |
| SG&A | 2,708 | 25.0% | S100YKKS |
| Operating income | 4,791 | 44.2% | S100YKKS |
| Ordinary income | 4,840 | 44.7% | S100YKKS |
| Pretax income | 4,840 | 44.7% | S100YKKS |
| Income tax | 1,413 | 13.0% | S100YKKS |
| Net income | 3,427 | 31.6% | S100YKKS |
| Net income attributable to owners | 3,427 | 31.6% | S100YKKS |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 31 |
| SG&A | 25 |
| Operating income | 44 |
| (Ref.) Net income | 32 |

### Margin funnel

Gross margin 69.2% → Operating margin 44.2% → Net margin 31.6%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +8.5%; Core profit growth: +5.1%
Growth quality: revenue-led
Operating leverage (core profit growth ÷ revenue growth): 0.60×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 9,982 | 10,835 | 853 | +8.5% |
| Gross profit | 7,033 | 7,500 | 467 | +6.6% |
| Operating income | 4,558 | 4,791 | 233 | +5.1% |
| Net income attributable to owners | 3,183 | 3,427 | 244 | +7.7% |
| Operating cash flow | 2,817 | 8,381 | 5,564 | +197.5% |
| Free cash flow | 1,747 | 7,121 | 5,374 | +307.6% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 5,641 | 2,328 | 41.3% | 1,590 | 2,686 | 1,901 | S100LMJ6 |
| FY ending Mar 2021 | 6,825 | 2,977 | 43.6% | 2,059 | 5,221 | 4,386 | S100OBVH |
| FY ending Mar 2022 | 9,051 | 4,126 | 45.6% | 2,900 | 6,169 | 5,191 | S100R3EK |
| FY ending Mar 2023 | 10,436 | 4,413 | 42.3% | 3,062 | 3,147 | 2,280 | S100TRMJ |
| FY ending Mar 2024 | 11,512 | 4,427 | 38.5% | 4,377 | 2,830 | 1,837 | S100W04H |
| FY ending Mar 2025 | 9,982 | 4,558 | 45.7% | 3,183 | 2,817 | 1,747 | S100YKKS |
| FY ending Mar 2026 | 10,835 | 4,791 | 44.2% | 3,427 | 8,381 | 7,121 | S100YKKS |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥38.8M |
| Operating income per employee (consolidated) | ¥17.2M |
| Net income per employee (consolidated) | ¥12.3M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 324 | 353 | 252 | 272 | 279 |
| Average salary (parent company) | ¥7M | ¥5.7M | ¥6.2M | ¥6.2M | ¥7M |
| Average age (parent company) | 34.3 years | 34.7 years | 34.8 years | 34.3 years | 34.9 years |
| Average tenure (parent company) | 6.1 years | 6.5 years | 6.8 years | 6.8 years | 7.1 years |

Year over year: Employees (consolidated) +2.6% · Revenue (consolidated) +8.5%

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 8,381 | 77.4% | S100YKKS |
| Capital expenditure | 1,260 | 11.6% | S100YKKS |
| Free cash flow | 7,121 | 65.7% | 算出 |
| Investing cash flow | -1,161 | -10.7% | S100YKKS |
| Financing cash flow | -2,095 | -19.3% | S100YKKS |
| Dividends paid | 1,219 | 11.3% | S100YKKS |
| Share buyback | 1,134 | 10.5% | S100YKKS |
| Change in cash | 5,131 | 47.4% | S100YKKS |
| Cash and equivalents | 23,083 | 213.0% | S100YKKS |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 15,773 | 17,018 | 18,339 | 17,952 | 23,083 | S100TRMJ, S100W04H, S100YKKS |
| Total assets | 19,341 | 21,149 | 22,518 | 22,627 | 27,865 | S100R3EK, S100TRMJ, S100W04H, S100YKKS |
| Net assets | 12,159 | 14,173 | 15,998 | 17,365 | 18,454 | S100TRMJ, S100W04H, S100YKKS |
| Share capital | 713 | 713 | 713 | 713 | 713 | S100R3EK, S100TRMJ, S100W04H, S100YKKS |
| Property, plant and equipment | 206 | 209 | 211 | 238 | 265 | S100R3EK, S100TRMJ, S100W04H, S100YKKS |
| Intangible assets excluding goodwill | 1,526 | 1,508 | 1,602 | 1,783 | 2,008 | S100R3EK, S100TRMJ, S100W04H, S100YKKS |
| Investment securities | 101 | 101 | 100 | — | — | S100R3EK, S100TRMJ, S100W04H |
| Current assets | 17,105 | 18,925 | 20,183 | 20,112 | 25,080 | S100R3EK, S100TRMJ, S100W04H, S100YKKS |
| Current liabilities | 7,130 | 6,924 | 6,467 | 5,209 | 9,358 | S100R3EK, S100TRMJ, S100W04H, S100YKKS |
| Total liabilities | 7,181 | 6,975 | 6,519 | 5,262 | 9,410 | S100R3EK, S100TRMJ, S100W04H, S100YKKS |
| Non-controlling interests | 17 | 20 | — | — | — | S100R3EK, S100TRMJ |
| Equity attributable to owners of parent | 12,118 | 14,127 | 15,968 | 17,318 | 18,405 | S100R3EK, S100TRMJ, S100W04H, S100YKKS |
| Retained earnings | 10,758 | 12,768 | 16,029 | 18,116 | 20,323 | S100R3EK, S100TRMJ, S100W04H, S100YKKS |
| Treasury stock | -307 | -308 | -1,730 | -2,467 | -3,589 | S100R3EK, S100TRMJ, S100W04H, S100YKKS |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 83% | S100YKKS |
| Property, plant and equipment | 1% | S100YKKS |
| Intangibles and goodwill | 7% | S100YKKS |
| Other assets | 9% | S100YKKS |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 34% | S100YKKS |
| Equity | 66% | S100YKKS |
| Other liabilities | 0% | S100YKKS |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 19,341 | 21,149 | 22,518 | 22,627 | 27,865 |
| Equity | 12,159 | 14,173 | 15,998 | 17,365 | 18,454 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 15,773 | 17,018 | 18,339 | 17,952 | 23,083 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 2.4% | S100YKKS |
| Fixed assets ÷ total assets | 1.0% | S100YKKS |
| Goodwill ÷ parent equity | — | —, S100YKKS |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 82.8% |
| Cash ÷ revenue | 213.0% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 174.9% |
| Cash vs. profit gap | 4,954 JPY mn (of net income 144.6%) |
| Shareholder returns / net income | 68.7% |
| Shareholder returns / FCF | 33.0% |
| Shareholder payments — dividends / net income | 35.6% |
| Shareholder payments — dividends / FCF | 17.1% |
| CapEx intensity (capex ÷ revenue) | 11.6% |
| Investing CF relative to operating CF | 13.9% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 32.0% | 0.47× | 15.0% | 1.60× | 23.9% | S100R3EK |
| 2023 | 29.3% | 0.52× | 15.1% | 1.54× | 23.3% | S100TRMJ |
| 2024 | 38.0% | 0.53× | 20.0% | 1.45× | 29.1% | S100W04H |
| 2025 | 31.9% | 0.44× | 14.1% | 1.36× | 19.1% | S100YKKS |
| 2026 | 31.6% | 0.43× | 13.6% | 1.41× | 19.2% | S100YKKS |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 道具 登志夫 | Major shareholder | 16.8% | 2026-03-31 |
| 日本マスタートラスト信託銀行株式会社（信託口） | Major shareholder | 13.4% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 8.1% | 2026-03-31 |
| DAM株式会社 | Major shareholder | 5.3% | 2026-03-31 |
| BNYMSANV RE BNYMSANVDUB RE LEGAL (AND) GENERAL UCITS ETF PLC（常任代理人 株式会社三菱UFJ銀行） | Major shareholder | 5.3% | 2026-03-31 |
| BNP PARIBAS LUXEMBOURG/2S/JASDEC/FIM/LUXEMBOURG FUNDS/UCITS ASSETS（常任代理人 香港上海銀行東京支店セキュリティーズ・サービシズ・オペレーションズ） | Major shareholder | 2.9% | 2026-03-31 |
| BNYM AS AGT/CLTS NON TREATY JASDEC（常任代理人 株式会社三菱UFJ銀行） | Major shareholder | 2.5% | 2026-03-31 |
| THE BANK OF NEW YORK MELLON 140040（常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 1.8% | 2026-03-31 |
| THE CHASE MANHATTAN BANK, N. A. LONDONSECS LENDING OMNIBUS ACCOUNT（常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 1.7% | 2026-03-31 |
| 光通信KK投資事業有限責任組合 | Major shareholder | 1.4% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第31期(2025/04/01－2026/03/31) | S100YKKS | 2026-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YKKS,, |
| 有価証券報告書－第30期(2024/04/01－2025/03/31) | S100W04H | 2025-06-20 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W04H,, |
| 有価証券報告書－第29期(2023/04/01－2024/03/31) | S100TRMJ | 2024-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TRMJ,, |
| 有価証券報告書－第28期(2022/04/01－2023/03/31) | S100R3EK | 2023-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R3EK,, |
| 有価証券報告書－第27期(令和3年4月1日－令和4年3月31日) | S100OBVH | 2022-06-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OBVH,, |
| 有価証券報告書－第26期(令和2年4月1日－令和3年3月31日) | S100LMJ6 | 2021-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LMJ6,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).