# Internet Initiative Japan Inc.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, IFRS
> Unit: JPY millions
> Sources: 有価証券報告書－第34期(2025/04/01－2026/03/31) (S100YHYH)
> Page: https://vizora.meequs.com/en/company/internet-initiative-japan
> Retrieved: 2026-09-30T22:29:11.845Z

## Company

Internet Initiative Japan, founded in 1992, is a company in Broadband & ISPs listed on TSE Prime. It has 5,533 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Internet Initiative Japan Inc. |
| Ticker | 3774 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/3774.T) |
| Listing | TSE Prime |
| Head office | 東京都千代田区富士見二丁目10番2号 |
| Representative (per filing) | 代表取締役 社長執行役員 谷脇 康彦 |
| Founded | Dec 1992 |
| Share capital | ¥25.7B |
| Employees (consolidated) | 5,533 |
| Average salary (parent only) | ¥7.5M |
| Fiscal year end | March |
| Website | www.iij.ad.jp (https://www.iij.ad.jp/) |
| Corporate number | 6010001011147 |
| EDINET | E05480 |
| Industries (Vizora) | Broadband & ISPs, IT Services & System Integration, Online & Retail-Affiliated Banks |

> Profile source: annual securities report (S100YHYH, filed 2026-06-25). As of filing

## Five-axis industry profile

Primary industry: IT Services & System Integration (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 62.7 | 157 |
| Profitability | 59.4 | 196 |
| Cash conversion | 89.5 | 185 |
| Efficiency | 33.4 | 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)

- About 99% of Internet Initiative Japan's sales come from Network services and SI business, with ATM operation business making up much of the rest.
- Out of every ¥100 of sales, about ¥10 is left as operating profit.
- Revenue changed +9.0% from the prior year, operating profit +15.7%.

## Company structure

- Segment revenue mix: Network services and SI business 99.1%、ATM operation business 0.9%
- Revenue → net income: ¥345395000000 → ¥24408000000
- Net income → operating cash flow: ¥24408000000 → ¥50460000000（difference ¥26052000000）
- Main uses of operating cash flow: CapEx ¥28490000000 / dividends ¥6553000000 / buybacks —
- Change in cash: ¥5861000000
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 | ¥345.4B |  |
| Operating income | ¥34.8B | Margin 10.1% |
| Net income | ¥24.2B | Margin 7.0% |
| Free cash flow | ¥22B |  |
| Largest business | Network services and SI business | of segment revenue 99.1% |
| Employees (consolidated) | 5,533 |  |
| EPS | ¥136.51 |  |
| Diluted EPS | ¥135.92 |  |
| Book value per share | ¥731.78 |  |
| Equity ratio | 45.5% | Derived from disclosed figures |
| Shares outstanding | 183,448,852 |  |
| Treasury shares | 6,186,900 |  |
| Shareholders | 10,895 |  |
| Average salary (parent only) | ¥7.5M | Filing company only |
| Cash ratio | 11.1% | Cash ÷ revenue 11.1% |
| Vs. industry median margin | -0.6 pp | Broadband & ISPs |
| ROE | 16.2% | Derived from disclosed figures |
| ROA | 7.3% | Derived from disclosed figures |

## Notable figures

- FY2026, operating cash flow is 2.1× net income
- FY2026, one segment accounts for 96% of positive segment profit

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥213001880000 | ¥345395000000 | +62.2% |
| Operating income | ¥14247723000 | ¥34835000000 | +144.5% |
| Operating margin | 6.7% | 10.1% | +3.4 pp |
| Employees | 3,805 people | 5,533 people | +45.4% |
| Cash and equivalents | ¥42467000000 | ¥38395000000 | -9.6% |

### 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 |
| --- | ---: |
| ネットワークサービス及びSI事業 → ネットワークサービス及びSI事業 | 98.6% |
| ATM運営事業 → ATM運営事業 | 0.9% |
| ATM運営事業 → 事業再編・廃止 | 0.5% |
| 新設・再編 → ネットワークサービス及びSI事業 | 0.5% |

Segment revenue source references: 4 (derived)

## Income statement（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 345,395 | 100.0% | S100YHYH |
| Cost of revenue | 269,228 | 77.9% | S100YHYH |
| Gross profit | 76,167 | 22.1% | S100YHYH |
| SG&A | 42,445 | 12.3% | S100YHYH |
| Operating income | 34,835 | 10.1% | S100YHYH |
| Pretax income | 35,242 | 10.2% | S100YHYH |
| Income tax | 10,834 | 3.1% | S100YHYH |
| Net income | 24,408 | 7.1% | S100YHYH |
| Net income attributable to owners | 24,188 | 7.0% | S100YHYH |

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

| Part | JPY |
| --- | ---: |
| Cost of revenue | 78 |
| SG&A | 12 |
| Operating income | 10 |
| (Ref.) Net income | 7 |

### Margin funnel

Gross margin 22.1% → Operating margin 10.1% → Net margin 7.0%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +9.0%; Core profit growth: +15.7%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 1.74×
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 | 316,831 | 345,395 | 28,564 | +9.0% |
| Gross profit | 68,402 | 76,167 | 7,765 | +11.4% |
| Operating income | 30,104 | 34,835 | 4,731 | +15.7% |
| Net income attributable to owners | 19,933 | 24,188 | 4,255 | +21.3% |
| Operating cash flow | 28,528 | 50,460 | 21,932 | +76.9% |
| Free cash flow | 8,413 | 21,970 | 13,557 | +161.1% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2017 | 157,789 | 5,134 | 3.3% | 3,167 | 7,368 | — | S100LUYO |
| FY ending Mar 2018 | 176,233 | 6,762 | 3.8% | 4,423 | 14,664 | — | S100OFU7 |
| FY ending Mar 2019 | 192,430 | 6,208 | 3.2% | 3,521 | 25,152 | — | S100QZG8 |
| FY ending Mar 2020 | 204,474 | 8,225 | 4.0% | 4,007 | 33,394 | 21,555 | S100LUYO |
| FY ending Mar 2021 | 213,002 | 14,248 | 6.7% | 9,712 | 40,544 | 29,537 | S100OFU7 |
| FY ending Mar 2022 | 226,335 | 23,547 | 10.4% | 15,672 | 43,573 | 32,056 | S100QZG8 |
| FY ending Mar 2023 | 252,708 | 27,221 | 10.8% | 18,852 | 38,529 | 21,271 | S100TTHB |
| FY ending Mar 2024 | 276,080 | 29,029 | 10.5% | 19,831 | 40,780 | 21,837 | S100W7DL |
| FY ending Mar 2025 | 316,831 | 30,104 | 9.5% | 19,933 | 28,528 | 8,413 | S100YHYH |
| FY ending Mar 2026 | 345,395 | 34,835 | 10.1% | 24,188 | 50,460 | 21,970 | S100YHYH |

## People and productivity（FY ending Mar 2026, consolidated, IFRS）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥62.4M |
| Operating income per employee (consolidated) | ¥6.3M |
| Net income per employee (consolidated) | ¥4.4M |

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) | 4,147 | 4,451 | 4,803 | 5,221 | 5,533 |
| Average salary (parent company) | ¥7.4M | ¥7.4M | ¥7.4M | ¥7.3M | ¥7.5M |
| Average age (parent company) | 37.7 years | 37.9 years | 37.6 years | 37.4 years | 37.5 years |
| Average tenure (parent company) | 9.1 years | 9.3 years | 9.2 years | 9.0 years | 9.3 years |

Year over year: Employees (consolidated) +6.0% · Revenue (consolidated) +9.0%

## Segments（FY ending Mar 2026, consolidated, IFRS、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Network services and SI business | 342,377 | 99.1% | 33,603 | 9.8% |
| ATM operation business | 3,018 | 0.9% | 1,232 | 40.8% |

### 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 | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Network services and SI business | 99.1% | 96.5% | -2.7 | 9.8% |
| ATM operation business | 0.9% | 3.5% | 2.7 | 40.8% |

Segment → industry: Network services and SI business → Broadband & ISPs / Network services and SI business → IT Services & System Integration / ATM operation business → Online & Retail-Affiliated Banks

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 50,460 | 14.6% | S100YHYH |
| Capital expenditure | 28,490 | 8.2% | S100YHYH |
| Free cash flow | 21,970 | 6.4% | 算出 |
| Investing cash flow | -26,329 | -7.6% | S100YHYH |
| Financing cash flow | -19,110 | -5.5% | S100YHYH |
| Dividends paid | 6,553 | 1.9% | S100YHYH |
| Change in cash | 5,861 | 1.7% | S100YHYH |
| Cash and equivalents | 38,395 | 11.1% | S100YHYH |

## 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 | 47,391 | 42,472 | 45,474 | 32,534 | 38,395 | S100TTHB, S100W7DL, S100YHYH |
| Total assets | 231,805 | 246,318 | 273,713 | 312,435 | 346,933 | S100QZG8, S100TTHB, S100W7DL, S100YHYH |
| Net assets | 104,621 | 119,427 | 127,032 | 142,086 | 159,471 | S100TTHB, S100W7DL, S100YHYH |
| Share capital | 25,562 | 25,562 | 25,562 | 25,577 | 25,663 | S100QZG8, S100TTHB, S100W7DL, S100YHYH |
| Property, plant and equipment | 17,846 | 23,321 | 29,072 | 33,771 | 45,114 | S100QZG8, S100TTHB, S100W7DL, S100YHYH |
| Goodwill | 9,479 | 9,859 | 10,328 | 10,307 | 10,773 | S100QZG8, S100TTHB, S100W7DL, S100YHYH |
| Current assets | 104,485 | 106,678 | 119,889 | 130,195 | 152,167 | S100QZG8, S100TTHB, S100W7DL, S100YHYH |
| Total liabilities | 127,184 | 126,891 | 146,681 | 170,349 | 187,462 | S100QZG8, S100TTHB, S100W7DL, S100YHYH |
| Equity attributable to owners of parent | 103,528 | 118,242 | 125,751 | 140,683 | 158,007 | S100QZG8, S100TTHB, S100W7DL, S100YHYH |
| Retained earnings | 37,024 | 51,202 | 65,616 | 79,885 | 98,163 | S100QZG8, S100TTHB, S100W7DL, S100YHYH |
| Treasury stock | -1,851 | -1,831 | -12,027 | -11,910 | -11,755 | S100QZG8, S100TTHB, S100W7DL, S100YHYH |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 11% | S100YHYH |
| Property, plant and equipment | 13% | S100YHYH |
| Intangibles and goodwill | 3% | — |
| Other assets | 73% | S100YHYH |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 54% | S100YHYH |
| Equity | 46% | S100YHYH |

### 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 | 231,805 | 246,318 | 273,713 | 312,435 | 346,933 |
| Equity | 104,621 | 119,427 | 127,032 | 142,086 | 159,471 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 47,391 | 42,472 | 45,474 | 32,534 | 38,395 |

## 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) | 13.1% | S100YHYH |
| Fixed assets ÷ total assets | 13.0% | S100YHYH |
| Goodwill ÷ parent equity | 6.8% | S100YHYH |

Goodwill over 4 years: 9,479 → 10,773 JPY; total investing cash flow: -96,229 JPY. This does not imply causation.

### 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) | 11.1% |
| Cash ÷ revenue | 11.1% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 144.9% |
| Cash vs. profit gap | 26,272 JPY mn (of net income 108.6%) |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 27.1% |
| Shareholder payments — dividends / FCF | 29.8% |
| CapEx intensity (capex ÷ revenue) | 8.2% |
| Investing CF relative to operating CF | 52.2% |

## 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 | 6.9% | 0.98× | 6.8% | 2.24× | 15.1% | S100QZG8 |
| 2023 | 7.5% | 1.06× | 7.9% | 2.16× | 17.0% | S100TTHB |
| 2024 | 7.2% | 1.06× | 7.6% | 2.13× | 16.3% | S100W7DL |
| 2025 | 6.3% | 1.08× | 6.8% | 2.20× | 15.0% | S100YHYH |
| 2026 | 7.0% | 1.05× | 7.3% | 2.21× | 16.2% | S100YHYH |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| KDDI株式会社 | Major shareholder | 11.5% | 2026-03-31 |
| NTT株式会社 | Major shareholder | 6.9% | 2026-03-31 |
| 日本マスタートラスト信託銀行株式会社（その他信託口）（注)2 | Major shareholder | 5.0% | 2026-03-31 |
| NTTドコモビジネス株式会社 | Major shareholder | 4.6% | 2026-03-31 |
| 伊藤忠テクノソリューションズ株式会社 | Major shareholder | 4.4% | 2026-03-31 |
| 鈴木 幸一 | Major shareholder | 4.2% | 2026-03-31 |
| 日本マスタートラスト信託銀行株式会社（投資信託口）（注)2 | Major shareholder | 4.0% | 2026-03-31 |
| 第一生命保険株式会社 （常任代理人 株式会社日本カストディ銀行） | Major shareholder | 2.9% | 2026-03-31 |
| 株式会社日本カストディ銀行（投資信託口）(注)3 | Major shareholder | 2.2% | 2026-03-31 |
| 株式会社KS Holdings（注)4 | Major shareholder | 1.8% | 2026-03-31 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Revenue for FY ending Mar 2026 was ¥345.4B, up +9.0% from ¥316.8B.
- Growth got stronger further down the income statement: gross profit rose +11.4%, operating income +15.7% to ¥34.8B, and net income +21.3% to ¥24.2B.
- Operating cash flow jumped +76.9% from ¥28.5B to ¥50.5B, and free cash flow climbed to ¥22B.

### Drivers

- Recurring monthly revenue from network services and system operation and maintenance kept growing
- System building sales dipped slightly after a large one-off order the year before, but operation and maintenance sales grew and carried the total
- Demand to renew corporate networks stayed strong, and the company kept winning large multi-year contracts

### Risks

- Many network service costs do not move with sales, so losing a large customer or cutting prices could hurt profit
- Much of its equipment and software is priced in US dollars, so a weak yen could push capital spending and maintenance costs higher than planned
- It relies on a few overseas suppliers; a pricing change for virtualization software already drove a sharp rise in license fees

Cited: Annual Securities Report, 34th fiscal year (Apr 2025 - Mar 2026) (経営者による財政状態、経営成績及びキャッシュ・フローの状況の分析); Annual Securities Report, 34th fiscal year (Apr 2025 - Mar 2026) (事業等のリスク)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第34期(2025/04/01－2026/03/31) | S100YHYH | 2026-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YHYH,, |
| 有価証券報告書－第33期(2024/04/01－2025/03/31) | S100W7DL | 2025-06-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W7DL,, |
| 有価証券報告書－第32期(2023/04/01－2024/03/31) | S100TTHB | 2024-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TTHB,, |
| 有価証券報告書－第31期(2022/04/01－2023/03/31) | S100QZG8 | 2023-06-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100QZG8,, |
| 有価証券報告書－第30期(令和3年4月1日－令和4年3月31日) | S100OFU7 | 2022-06-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OFU7,, |
| 有価証券報告書－第29期(令和2年4月1日－令和3年3月31日) | S100LUYO | 2021-06-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LUYO,, |

## 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).