# Innovation 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26期(2025/04/01－2026/03/31) (S100YHYE)
> Page: https://vizora.meequs.com/en/company/innovation
> Retrieved: 2026-09-30T21:33:48.389Z

## Company

Innovation, founded in 2000, is a company in Software & SaaS listed on TSE Standard. It has 333 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Innovation Inc. |
| Ticker | 3970 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/3970.T) |
| Listing | TSE Standard |
| Head office | 東京都渋谷区渋谷三丁目10番13号 |
| Representative (per filing) | 代表取締役社長 CEO 富田 直人 |
| Founded | Dec 2000 |
| Share capital | ¥415.5M |
| Employees (consolidated) | 333 |
| Average salary (parent only) | ¥6.4M |
| Fiscal year end | March |
| Website | www.innovation.co.jp (https://www.innovation.co.jp/) |
| Corporate number | 5011001035806 |
| EDINET | E32766 |
| Industries (Vizora) | Software & SaaS, Internet Services & Apps, Non-life Insurance, Venture Capital |

> Profile source: annual securities report (S100YHYE, filed 2026-06-23). As of filing

## Five-axis industry profile

Primary industry: Internet Services & Apps (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 73.8 | 40 |
| Profitability | 12.7 | 51 |
| Efficiency | 35.6 | 52 |

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)

- About 53% of Innovation's sales come from Online media service, with IT solution service and Financial Platform making up much of the rest.
- It lost about ¥4 for every ¥100 of sales at the operating level.
- Revenue changed +30.4% from the prior year, operating profit -170.6%.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥6.97B |  |
| Operating income | -¥248.5M | Margin -3.6% |
| Net income | -¥458M | Margin -6.6% |
| Free cash flow | -¥70M |  |
| Largest business | Online media service | of segment revenue 53.5% |
| Employees (consolidated) | 333 |  |
| EPS | ¥-27.87 |  |
| Book value per share | ¥938.41 |  |
| Equity ratio | 36.9% |  |
| Shares outstanding | 2,762,100 |  |
| Shareholders | 1,434 |  |
| Average salary (parent only) | ¥6.4M | Filing company only |
| Cash ratio | 41.6% | Cash ÷ revenue 46.8% |
| Vs. industry median margin | -11.2 pp | Internet Services & Apps |
| ROA | -5.7% | Derived from disclosed figures |

## Notable figures

- FY2026, one segment accounts for 76% of positive segment profit
- FY2026, cash is 42% of total assets

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥3083540000 | ¥6968290000 | +126.0% |
| Operating income | ¥517679000 | ¥-248484000 | -148.0% |
| Operating margin | 16.8% | -3.6% | -20.4 pp |
| Employees | 116 people | 333 people | +187.1% |
| Cash and equivalents | ¥1997781000 | ¥3264349000 | +63.4% |

### 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.

| Flow | Revenue share |
| --- | ---: |
| オンラインメディア事業 → オンラインメディア事業 | 53.5% |
| オンラインメディア事業 → 事業再編・廃止 | 25.8% |
| ＩＴソリューション事業 → ＩＴソリューション事業 | 15.3% |
| 金融プラットフォーム事業 → 金融プラットフォーム事業 | 4.8% |
| 金融プラットフォーム事業 → 事業再編・廃止 | 0.7% |
| 新設・再編 → ＩＴソリューション事業 | 26.4% |

Segment revenue source references: 6 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Online media service | 5 years | +8.8% | ¥3721250000 | 32.0% | 2 |
| IT solution service | 5 years | +43.8% | ¥2908450000 | 13.0% | 2 |
| Financial Platform | 5 years | +14.6% | ¥332390000 | -59.3% | 2 |

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

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 6,968 | 100.0% | S100YHYE |
| Cost of revenue | 3,468 | 49.8% | S100YHYE |
| Gross profit | 3,500 | 50.2% | S100YHYE |
| SG&A | 3,749 | 53.8% | S100YHYE |
| Operating income | -248 | -3.6% | S100YHYE |
| Ordinary income | -335 | -4.8% | S100YHYE |
| Pretax income | -345 | -4.9% | S100YHYE |
| Income tax | 50 | 0.7% | S100YHYE |
| Net income | -395 | -5.7% | S100YHYE |
| Net income attributable to owners | -458 | -6.6% | S100YHYE |

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

| Part | JPY |
| --- | ---: |
| Cost of revenue | 50 |
| SG&A | 54 |
| Operating income | -4 |
| (Ref.) Net income | -7 |

### Margin funnel

Gross margin 50.2% → Operating margin -3.6% → Net margin -6.6%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Turned to a loss
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 | 5,344 | 6,968 | 1,625 | +30.4% |
| Gross profit | 2,312 | 3,500 | 1,189 | +51.4% |
| Operating income | 352 | -248 | -600 | -170.6% |
| Net income attributable to owners | 67 | -458 | -525 | -778.7% |
| Operating cash flow | 73 | 315 | 242 | +330.8% |
| Free cash flow | -37 | -70 | -33 | — |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 2,022 | 175 | 8.6% | 92 | 262 | 203 | S100LQ77 |
| FY ending Mar 2021 | 3,084 | 518 | 16.8% | 293 | 423 | 354 | S100PR2R |
| FY ending Mar 2022 | 4,380 | 778 | 17.8% | 448 | 466 | 338 | S100R861 |
| FY ending Mar 2023 | 4,571 | 343 | 7.5% | 63 | 113 | -1 | S100TY99 |
| FY ending Mar 2024 | 4,813 | 400 | 8.3% | 245 | 345 | 275 | S100W428 |
| FY ending Mar 2025 | 5,344 | 352 | 6.6% | 67 | 73 | -37 | S100YHYE |
| FY ending Mar 2026 | 6,968 | -248 | -3.6% | -458 | 315 | -70 | S100YHYE |

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

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥20.9M |
| Operating income per employee (consolidated) | -¥746.2K |
| Net income per employee (consolidated) | -¥1.4M |

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) | 147 | 167 | 157 | 394 | 333 |
| Average salary (parent company) | ¥6.1M | ¥6M | ¥6.4M | ¥7.1M | ¥6.4M |
| Average age (parent company) | 33.6 years | 33.6 years | 32.9 years | 33.5 years | 34.8 years |
| Average tenure (parent company) | 4.4 years | 4.6 years | 3.8 years | 4.1 years | 4.3 years |

Year over year: Employees (consolidated) -15.5% · Revenue (consolidated) +30.4%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Online media service | 3,721 | 53.5% | 1,189 | 32.0% |
| IT solution service | 2,908 | 41.8% | 379 | 13.0% |
| Financial Platform | 332 | 4.8% | -197 | -59.3% |
| VC fund | — | 0.0% | -287 | — |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Profit share | Margin |
| --- | ---: | ---: |
| Online media service | 75.8% | 32.0% |
| IT solution service | 24.2% | 13.0% |
| Financial Platform | — | -59.3% |
| VC fund | — | — |

Loss-making segment (excluded from profit shares): Financial Platform -197 JPY mn

Loss-making segment (excluded from profit shares): VC fund -287 JPY mn

Segment → industry: IT solution service → Software & SaaS / Financial Platform → Internet Services & Apps / Online media service → Internet Services & Apps / Financial Platform → Non-life Insurance / VC fund → Venture Capital

## 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 | 315 | 4.5% | S100YHYE |
| Capital expenditure | 385 | 5.5% | S100YHYE |
| Free cash flow | -70 | -1.0% | 算出 |
| Investing cash flow | -298 | -4.3% | S100YHYE |
| Financing cash flow | -332 | -4.8% | S100YHYE |
| Dividends paid | 109 | 1.6% | S100YHYE |
| Change in cash | -312 | -4.5% | S100YHYE |
| Cash and equivalents | 3,264 | 46.8% | S100YHYE |

## 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 | 2,181 | 2,295 | 3,280 | 3,576 | 3,264 | S100TY99, S100W428, S100YHYE |
| Total assets | 3,769 | 3,795 | 4,678 | 8,322 | 7,848 | S100R861, S100TY99, S100W428, S100YHYE |
| Net assets | 3,022 | 3,180 | 3,567 | 4,067 | 3,651 | S100TY99, S100W428, S100YHYE |
| Share capital | 1,002 | 1,113 | 1,211 | 1,241 | 416 | S100R861, S100TY99, S100W428, S100YHYE |
| Trade receivables | 704 | 512 | 694 | — | — | S100R861, S100TY99 |
| Property, plant and equipment | 19 | 17 | 31 | 75 | 122 | S100R861, S100TY99, S100W428, S100YHYE |
| Intangible assets excluding goodwill | 216 | 179 | 190 | 2,886 | 2,726 | S100R861, S100TY99, S100W428, S100YHYE |
| Goodwill | — | — | — | 1,438 | 1,294 | S100YHYE |
| Investment securities | 390 | 370 | 115 | 104 | 95 | S100R861, S100TY99, S100W428, S100YHYE |
| Current assets | 3,015 | 3,085 | 4,214 | 4,976 | 4,714 | S100R861, S100TY99, S100W428, S100YHYE |
| Current liabilities | 727 | 592 | 884 | 3,748 | 2,041 | S100R861, S100TY99, S100W428, S100YHYE |
| Short-term borrowings | — | — | — | 2,200 | 21 | S100YHYE |
| Long-term borrowings | — | — | 200 | 155 | 1,835 | S100W428, S100YHYE |
| Bonds | — | — | — | 20 | — | S100YHYE |
| Interest-bearing debt | — | — | — | 2,375 | — | 算出 |
| Total liabilities | 747 | 615 | 1,111 | 4,254 | 4,197 | S100R861, S100TY99, S100W428, S100YHYE |
| Non-controlling interests | 43 | 19 | 40 | 681 | 750 | S100R861, S100TY99, S100W428, S100YHYE |
| Equity attributable to owners of parent | 2,986 | 3,176 | 3,524 | 3,427 | 2,899 | S100R861, S100TY99, S100W428, S100YHYE |
| Retained earnings | 1,041 | 1,005 | 1,151 | 1,107 | 540 | S100R861, S100TY99, S100W428, S100YHYE |
| Treasury stock | -38 | -32 | -25 | -90 | -81 | S100R861, S100TY99, S100W428, S100YHYE |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 42% | S100YHYE |
| Property, plant and equipment | 2% | S100YHYE |
| Intangibles and goodwill | 51% | S100YHYE |
| Investment securities | 1% | S100YHYE |
| Other assets | 4% | S100YHYE |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 53% | S100YHYE |
| Equity | 47% | S100YHYE |
| Other liabilities | 0% | S100YHYE |

### 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 | 3,769 | 3,795 | 4,678 | 8,322 | 7,848 |
| Equity | 3,022 | 3,180 | 3,567 | 4,067 | 3,651 |
| Interest-bearing debt | — | — | — | 2,375 | — |
| Cash | 2,181 | 2,295 | 3,280 | 3,576 | 3,264 |

## 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) | 1.7% | S100YHYE |
| Fixed assets ÷ total assets | 1.5% | S100YHYE |
| Goodwill ÷ parent equity | 44.7% | S100YHYE |

### 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) | 41.6% |
| Cash ÷ revenue | 46.8% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | — |
| Cash vs. profit gap | 773 JPY mn |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | — |
| Shareholder payments — dividends / FCF | — |
| CapEx intensity (capex ÷ revenue) | 5.5% |
| Investing CF relative to operating CF | 94.7% |

## 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 | 10.2% | 1.16× | 11.9% | 1.26× | 15.0% | S100R861 |
| 2023 | 1.4% | 1.21× | 1.7% | 1.23× | 2.0% | S100TY99 |
| 2024 | 5.1% | 1.14× | 5.8% | 1.26× | 7.3% | S100W428 |
| 2025 | 1.3% | 0.82× | 1.0% | 1.87× | 1.9% | S100YHYE |
| 2026 | — | —× | -5.7% | —× | — | S100YHYE |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 富田 直人 | Major shareholder | 31.6% | 2026-03-31 |
| 株式会社ＮＴＩ | Major shareholder | 7.2% | 2026-03-31 |
| 株式会社ファインドスターグループ | Major shareholder | 5.1% | 2026-03-31 |
| 合同会社センス | Major shareholder | 4.1% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 2.8% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託E口） | Major shareholder | 2.7% | 2026-03-31 |
| 佐藤 文則 | Major shareholder | 2.5% | 2026-03-31 |
| 光通信ＫＫ投資事業有限責任組合 | Major shareholder | 2.2% | 2026-03-31 |
| 内藤 征吾 | Major shareholder | 2.0% | 2026-03-31 |
| 遠藤 俊一 | Major shareholder | 1.8% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第26期(2025/04/01－2026/03/31) | S100YHYE | 2026-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YHYE,, |
| 有価証券報告書－第25期(2024/04/01－2025/03/31) | S100W428 | 2025-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W428,, |
| 有価証券報告書－第24期(2023/04/01－2024/03/31) | S100TY99 | 2024-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TY99,, |
| 有価証券報告書－第23期(2022/04/01－2023/03/31) | S100R861 | 2023-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R861,, |
| 訂正有価証券報告書－第22期(令和3年4月1日－令和4年3月31日) | S100PR2R | 2022-12-06 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100PR2R,, |
| 有価証券報告書－第21期(令和2年4月1日－令和3年3月31日) | S100LQ77 | 2021-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LQ77,, |

## 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).