# Headwaters Co.,Ltd: business model and financials

> Latest period: FY ending Dec 2025, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第21期(2025/01/01－2025/12/31) (S100XUSL)
> Page: https://vizora.meequs.com/en/company/headwaters
> Retrieved: 2026-09-30T18:34:44.015Z

## Company

Headwaters, founded in 2005, is a company in IT Services & System Integration listed on TSE Growth. It has 389 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Headwaters Co.,Ltd |
| Ticker | 4011 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/4011.T) |
| Listing | TSE Growth |
| Head office | 東京都新宿区西新宿6丁目5番1号 |
| Representative (per filing) | 代表取締役 篠田 庸介 |
| Founded | Nov 2005 |
| Share capital | ¥389.9M |
| Employees (consolidated) | 389 |
| Average salary (parent only) | ¥5.6M |
| Fiscal year end | December |
| Website | www.headwaters.co.jp (https://www.headwaters.co.jp/) |
| Corporate number | 4011101040211 |
| EDINET | E35941 |
| Industries (Vizora) | IT Services & System Integration |

> Profile source: annual securities report (S100XUSL, filed 2026-03-27). As of filing

## Five-axis industry profile

Primary industry: IT Services & System Integration (2025-12-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Profitability | 28.3 | 196 |
| Cash conversion | 4.6 | 185 |
| Efficiency | 58.9 | 196 |

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)

- Headwaters brought in ¥3.9B in revenue.
- Out of every ¥100 of sales, about ¥6 is left as operating profit.
- Revenue changed +34.2% from the prior year, operating profit -25.6%.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥3.9B |  |
| Operating income | ¥229.3M | Margin 5.9% |
| Net income | ¥57.7M | Margin 1.5% |
| Free cash flow | -¥61.6M |  |
| Employees (consolidated) | 389 |  |
| EPS | ¥-1.46 |  |
| Diluted EPS | ¥13.84 |  |
| Book value per share | ¥287.83 |  |
| Equity ratio | 34.5% |  |
| Shares outstanding | 3,844,144 |  |
| Treasury shares | 100 |  |
| Shareholders | 3,162 |  |
| Average salary (parent only) | ¥5.6M | Filing company only |
| Cash ratio | 16.2% | Cash ÷ revenue 16.0% |
| Vs. industry median margin | -3 pp | IT Services & System Integration |
| ROE | 4.5% | Derived from disclosed figures |
| ROA | 2.0% | Derived from disclosed figures |

## What changed in 5 years

Currency or consolidation scope differs; percentage changes are omitted.

| Metric | FY ending Dec 2020 | FY ending Dec 2025 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥1153196000 | ¥3900040000 | — |
| Operating income | ¥169533000 | ¥229250000 | — |
| Operating margin | 14.7% | 5.9% | -8.8 pp |
| Employees | 75 people | 389 people | — |
| Cash and equivalents | ¥753495000 | ¥625145000 | — |

### Change in segment revenue mix

Span: FY ending Dec 2020 → FY ending Dec 2025. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

## Income statement（FY ending Dec 2025, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 3,900 | 100.0% | S100XUSL |
| Cost of revenue | 2,167 | 55.6% | S100XUSL |
| Gross profit | 1,733 | 44.4% | S100XUSL |
| SG&A | 1,503 | 38.6% | S100XUSL |
| Operating income | 229 | 5.9% | S100XUSL |
| Ordinary income | 129 | 3.3% | S100XUSL |
| Pretax income | 128 | 3.3% | S100XUSL |
| Income tax | 53 | 1.4% | S100XUSL |
| Net income | 76 | 1.9% | S100XUSL |
| Net income attributable to owners | 58 | 1.5% | S100XUSL |

## Per ¥100 of revenue（FY ending Dec 2025）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 56 |
| SG&A | 38 |
| Operating income | 6 |
| (Ref.) Net income | 1 |

### Margin funnel

Gross margin 44.4% → Operating margin 5.9% → Net margin 1.5%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue up, profit down
Revenue growth: +34.2%; Core profit growth: -25.6%
Growth quality: revenue-led
Operating leverage (core profit growth ÷ revenue growth): -0.75×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Dec 2024 → FY ending Dec 2025、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 2,906 | 3,900 | 994 | +34.2% |
| Gross profit | 1,240 | 1,733 | 493 | +39.7% |
| Operating income | 308 | 229 | -79 | -25.6% |
| Net income attributable to owners | 273 | 58 | -215 | -78.9% |
| Operating cash flow | 144 | -39 | -183 | -126.8% |
| Free cash flow | 118 | -62 | -179 | -152.3% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Dec 2019 | 1,068 | 121 | 11.3% | 100 | 212 | 201 | S100L2GN |
| FY ending Dec 2020 | 1,153 | 170 | 14.7% | 153 | 179 | 172 | S100NRTJ |
| FY ending Dec 2021 | 1,171 | 91 | 7.8% | 27 | 48 | 45 | S100NRTJ |
| FY ending Dec 2022 | 1,575 | 110 | 7.0% | 75 | 84 | 43 | S100T69Y |
| FY ending Dec 2023 | 2,315 | 95 | 4.1% | 71 | 88 | 71 | S100VGDD |
| FY ending Dec 2024 | 2,906 | 308 | 10.6% | 273 | 144 | 118 | S100XUSL |
| FY ending Dec 2025 | 3,900 | 229 | 5.9% | 58 | -39 | -62 | S100XUSL |

## People and productivity（FY ending Dec 2025, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥10M |
| Operating income per employee (consolidated) | ¥589.3K |
| Net income per employee (consolidated) | ¥148.2K |

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

| History | FY ending Dec 2021 | FY ending Dec 2022 | FY ending Dec 2023 | FY ending Dec 2024 | FY ending Dec 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 88 | 113 | 165 | 240 | 389 |
| Average salary (parent company) | ¥4.4M | ¥4.4M | ¥4.5M | ¥5.1M | ¥5.6M |
| Average age (parent company) | 33.8 years | 33.1 years | 34.2 years | 34.3 years | 35.2 years |
| Average tenure (parent company) | 6.5 years | 5.5 years | 6.0 years | 5.0 years | 4.4 years |

Year over year: Employees (consolidated) +62.1% · Revenue (consolidated) +34.2%

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Dec 2025, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | -39 | -1.0% | S100XUSL |
| Capital expenditure | 23 | 0.6% | S100XUSL |
| Free cash flow | -62 | -1.6% | 算出 |
| Investing cash flow | -2,095 | -53.7% | S100XUSL |
| Financing cash flow | 1,914 | 49.1% | S100XUSL |
| Change in cash | -218 | -5.6% | S100XUSL |
| Cash and equivalents | 625 | 16.0% | S100XUSL |

## 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 Dec 2021 | FY ending Dec 2022 | FY ending Dec 2023 | FY ending Dec 2024 | FY ending Dec 2025 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 766 | 819 | 898 | 843 | 625 | S100NRTJ, S100VGDD, S100XUSL |
| Total assets | 973 | 1,169 | 1,294 | 1,800 | 3,850 | S100NRTJ, S100T69Y, S100VGDD, S100XUSL |
| Net assets | 800 | 875 | 962 | 1,273 | 1,354 | S100NRTJ, S100VGDD, S100XUSL |
| Share capital | 363 | 363 | 369 | 378 | 390 | S100NRTJ, S100T69Y, S100VGDD, S100XUSL |
| Property, plant and equipment | 9 | 26 | 31 | 40 | 42 | S100NRTJ, S100T69Y, S100VGDD, S100XUSL |
| Intangible assets excluding goodwill | — | 17 | 14 | 10 | 162 | S100T69Y, S100VGDD, S100XUSL |
| Goodwill | — | — | — | — | 155 | S100XUSL |
| Investment securities | — | — | — | 95 | 68 | S100XUSL |
| Current assets | 928 | 1,103 | 1,226 | 1,460 | 1,581 | S100NRTJ, S100T69Y, S100VGDD, S100XUSL |
| Current liabilities | 173 | 294 | 332 | 528 | 2,494 | S100NRTJ, S100T69Y, S100VGDD, S100XUSL |
| Short-term borrowings | — | — | — | — | 1,900 | S100XUSL |
| Total liabilities | 173 | 294 | 333 | 528 | 2,496 | S100NRTJ, S100T69Y, S100VGDD, S100XUSL |
| Non-controlling interests | — | — | 3 | 6 | 24 | S100VGDD, S100XUSL |
| Equity attributable to owners of parent | 800 | 875 | 959 | 1,250 | 1,331 | S100NRTJ, S100T69Y, S100VGDD, S100XUSL |
| Retained earnings | 85 | 160 | 231 | 504 | 561 | S100NRTJ, S100T69Y, S100VGDD, S100XUSL |
| Treasury stock | — | — | -0 | -0 | -0 | S100VGDD, S100XUSL |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 16% | S100XUSL |
| Property, plant and equipment | 1% | S100XUSL |
| Intangibles and goodwill | 8% | S100XUSL |
| Investment securities | 2% | S100XUSL |
| Other assets | 73% | S100XUSL |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 65% | S100XUSL |
| Equity | 35% | S100XUSL |

### Balance sheet history

| Metric | FY ending Dec 2021 | FY ending Dec 2022 | FY ending Dec 2023 | FY ending Dec 2024 | FY ending Dec 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 973 | 1,169 | 1,294 | 1,800 | 3,850 |
| Equity | 800 | 875 | 962 | 1,273 | 1,354 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 766 | 819 | 898 | 843 | 625 |

## 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) | 1.1% | S100XUSL |
| Fixed assets ÷ total assets | 1.1% | S100XUSL |
| Goodwill ÷ parent equity | 11.6% | S100XUSL |

### 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) | 16.2% |
| Cash ÷ revenue | 16.0% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | -16.9% |
| Cash vs. profit gap | -96 JPY mn (of net income -167.1%) |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | — |
| Shareholder payments — dividends / FCF | — |
| CapEx intensity (capex ÷ revenue) | 0.6% |
| Investing CF relative to operating CF | — |

## 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 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2021 | 2.3% | 1.20× | 2.8% | 1.22× | 3.4% | S100NRTJ |
| 2022 | 4.8% | 1.35× | 6.4% | 1.34× | 8.6% | S100T69Y |
| 2023 | 3.1% | 1.88× | 5.7% | 1.34× | 7.7% | S100VGDD |
| 2024 | 9.4% | 1.88× | 17.6% | 1.40× | 24.7% | S100XUSL |
| 2025 | 1.5% | 1.38× | 2.0% | 2.19× | 4.5% | S100XUSL |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 篠田 庸介 | Major shareholder | 46.4% | 2025-12-31 |
| 水谷 量材 | Major shareholder | 3.1% | 2025-12-31 |
| 楽天証券株式会社共有口 | Major shareholder | 2.9% | 2025-12-31 |
| 疋田 正人 | Major shareholder | 1.3% | 2025-12-31 |
| 山崎 哲靖 | Major shareholder | 1.0% | 2025-12-31 |
| BCホールディングス株式会社 | Major shareholder | 0.9% | 2025-12-31 |
| 今 秀信 | Major shareholder | 0.8% | 2025-12-31 |
| 株式会社ROBOT PAYMENT | Major shareholder | 0.8% | 2025-12-31 |
| 野村證券株式会社 | Major shareholder | 0.8% | 2025-12-31 |
| 畠山 獎二 | Major shareholder | 0.7% | 2025-12-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第21期(2025/01/01－2025/12/31) | S100XUSL | 2026-03-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100XUSL,, |
| 有価証券報告書－第20期(2024/01/01－2024/12/31) | S100VGDD | 2025-03-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VGDD,, |
| 有価証券報告書－第19期(2023/01/01－2023/12/31) | S100T69Y | 2024-03-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100T69Y,, |
| 有価証券報告書－第18期(2022/01/01－2022/12/31) | S100QHOA | 2023-03-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100QHOA,, |
| 有価証券報告書－第17期(令和3年1月1日－令和3年12月31日) | S100NRTJ | 2022-03-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100NRTJ,, |
| 有価証券報告書－第16期(令和2年1月1日－令和2年12月31日) | S100L2GN | 2021-03-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100L2GN,, |

## 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).