# SHIFT: business model and financials

> Latest period: FY ending Aug 2025, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第20期(2024/09/01－2025/08/31) (S100X63F)
> Page: https://vizora.meequs.com/en/company/shift
> Retrieved: 2026-09-30T20:55:09.925Z

## Company

Shift, founded in 2005, is a company in IT Services & System Integration listed on TSE Prime. It has 11,688 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | SHIFT Inc. |
| Ticker | 3697 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/3697.T) |
| Listing | TSE Prime |
| Head office | 東京都港区麻布台一丁目3番1号麻布台ヒルズ 森JPタワー |
| Representative (per filing) | 代表取締役社長 丹下 大 |
| Founded | Sep 2005 |
| Share capital | ¥21M |
| Employees (consolidated) | 11,688 |
| Average salary (parent only) | ¥6.8M |
| Fiscal year end | August |
| Website | www.shiftinc.jp (https://www.shiftinc.jp/) |
| Corporate number | 8010401073462 |
| EDINET | E30969 |
| Industries (Vizora) | IT Services & System Integration, Advertising |

> Profile source: annual securities report (S100X63F, filed 2025-11-21). As of filing

## Five-axis industry profile

Primary industry: IT Services & System Integration (2025-08-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 97.8 | 157 |
| Profitability | 74.2 | 196 |
| Cash conversion | 68.4 | 185 |
| Efficiency | 84.9 | 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)

- About 64% of Shift's sales come from Software Testing Related Services, with Software Development Related Services and Other Proximate Services making up much of the rest.
- Out of every ¥100 of sales, about ¥12 is left as operating profit.
- Revenue changed +17.3% from the prior year, operating profit +48.3%.

## Company structure

- Segment revenue mix: Software Testing Related Services 64.3%、Software Development Related Services 28.6%、Other Proximate Services 7.1%
- Revenue → net income: ¥129819000000 → ¥9004000000
- Net income → operating cash flow: ¥9004000000 → ¥15652000000（difference ¥6648000000）
- Main uses of operating cash flow: CapEx ¥1478000000 / dividends — / buybacks ¥999000000
- Change in cash: ¥2755000000
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 | ¥129.8B |  |
| Operating income | ¥15.6B | Margin 12.0% |
| Net income | ¥8.94B | Margin 6.9% |
| Free cash flow | ¥14.2B |  |
| Largest business | Software Testing Related Services | of segment revenue 64.3% |
| Employees (consolidated) | 11,688 |  |
| EPS | ¥35.05 |  |
| Diluted EPS | ¥35.01 |  |
| Book value per share | ¥128.9 |  |
| Equity ratio | 52.7% |  |
| Shares outstanding | 267,500,670 |  |
| Treasury shares | 917,000 |  |
| Shareholders | 18,644 |  |
| Average salary (parent only) | ¥6.8M | Filing company only |
| Cash ratio | 30.6% | Cash ÷ revenue 18.2% |
| Vs. industry median margin | +3.1 pp | IT Services & System Integration |
| ROE | 24.0% | Derived from disclosed figures |
| ROA | 12.8% | Derived from disclosed figures |

## Notable figures

- FY2025, revenue is 2.8× its level five years ago
- FY2025, one segment accounts for 87% of positive segment profit
- FY2025, segment profit share differs by 22 points

## What changed in 5 years

| Metric | FY ending Aug 2020 | FY ending Aug 2025 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥28712177000 | ¥129819000000 | +352.1% |
| Operating income | ¥2353376000 | ¥15628000000 | +564.1% |
| Operating margin | 8.2% | 12.0% | +3.8 pp |
| Employees | 2,958 people | 11,688 people | +295.1% |
| Cash and equivalents | ¥6524000000 | ¥23600000000 | +261.7% |

### Change in segment revenue mix

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

| Flow | Revenue share |
| --- | ---: |
| エンタープライズ市場 → 事業再編・廃止 | 90.5% |
| エンターテインメント市場 → 事業再編・廃止 | 9.5% |
| 新設・再編 → ソフトウェアテスト関連サービス | 64.3% |
| 新設・再編 → ソフトウェア開発関連サービス | 28.6% |
| 新設・再編 → その他近接サービス | 7.1% |

Segment revenue source references: 5 (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 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Software Testing Related Services | 3 years | +25.9% | ¥83437000000 | 25.8% | 2 |
| Software Development Related Services | 3 years | +28.1% | ¥37118000000 | 7.0% | 2 |
| Other Proximate Services | 3 years | +19.8% | ¥9264000000 | 7.9% | 2 |

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

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 129,819 | 100.0% | S100X63F |
| Cost of revenue | 84,803 | 65.3% | S100X63F |
| Gross profit | 45,016 | 34.7% | S100X63F |
| SG&A | 29,387 | 22.6% | S100X63F |
| Operating income | 15,628 | 12.0% | S100X63F |
| Ordinary income | 15,181 | 11.7% | S100X63F |
| Pretax income | 13,674 | 10.5% | S100X63F |
| Income tax | 4,669 | 3.6% | S100X63F |
| Net income | 9,004 | 6.9% | S100X63F |
| Net income attributable to owners | 8,935 | 6.9% | S100X63F |

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

| Part | JPY |
| --- | ---: |
| Cost of revenue | 65 |
| SG&A | 23 |
| Operating income | 12 |
| (Ref.) Net income | 7 |

### Margin funnel

Gross margin 34.7% → Operating margin 12.0% → Net margin 6.9%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +17.3%; Core profit growth: +48.3%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 2.79×
Calculated from comparable annual consolidated filings.

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

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 110,627 | 129,819 | 19,192 | +17.3% |
| Gross profit | 35,360 | 45,016 | 9,656 | +27.3% |
| Operating income | 10,537 | 15,628 | 5,091 | +48.3% |
| Net income attributable to owners | 5,127 | 8,935 | 3,808 | +74.3% |
| Operating cash flow | 9,088 | 15,652 | 6,564 | +72.2% |
| Free cash flow | 3,377 | 14,174 | 10,797 | +319.7% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Aug 2019 | 19,532 | 1,541 | 7.9% | 970 | 1,134 | 854 | S100K9M6 |
| FY ending Aug 2020 | 28,712 | 2,353 | 8.2% | 1,649 | 2,251 | 1,767 | S100MYNI |
| FY ending Aug 2021 | 46,005 | 3,995 | 8.7% | 2,819 | 4,758 | 4,322 | S100PPZT |
| FY ending Aug 2022 | 64,873 | 6,913 | 10.7% | 4,974 | 7,392 | 6,624 | S100SDFR |
| FY ending Aug 2023 | 88,030 | 11,565 | 13.1% | 6,245 | 10,248 | 8,992 | S100UVHV |
| FY ending Aug 2024 | 110,627 | 10,537 | 9.5% | 5,127 | 9,088 | 3,377 | S100X63F |
| FY ending Aug 2025 | 129,819 | 15,628 | 12.0% | 8,935 | 15,652 | 14,174 | S100X63F |

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

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥11.1M |
| Operating income per employee (consolidated) | ¥1.3M |
| Net income per employee (consolidated) | ¥764.5K |

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

| History | FY ending Aug 2021 | FY ending Aug 2022 | FY ending Aug 2023 | FY ending Aug 2024 | FY ending Aug 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 4,440 | 6,208 | 8,423 | 10,266 | 11,688 |
| Average salary (parent company) | ¥5.9M | ¥6M | ¥6.4M | ¥6.7M | ¥6.8M |
| Average age (parent company) | 35.0 years | 36.0 years | 37.0 years | 38.0 years | 38.0 years |
| Average tenure (parent company) | 2.0 years | 2.0 years | 2.0 years | 3.0 years | 3.2 years |

Year over year: Employees (consolidated) +13.9% · Revenue (consolidated) +17.3%

## Segments（FY ending Aug 2025, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Software Testing Related Services | 83,437 | 64.3% | 21,518 | 25.8% |
| Software Development Related Services | 37,118 | 28.6% | 2,610 | 7.0% |
| Other Proximate Services | 9,264 | 7.1% | 736 | 7.9% |

### 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 |
| --- | ---: | ---: | ---: | ---: |
| Software Testing Related Services | 64.3% | 86.5% | 22.3 | 25.8% |
| Software Development Related Services | 28.6% | 10.5% | -18.1 | 7.0% |
| Other Proximate Services | 7.1% | 3.0% | -4.2 | 7.9% |

Segment → industry: Other Proximate Services → IT Services & System Integration / Software Development Related Services → IT Services & System Integration / Software Testing Related Services → IT Services & System Integration / Other Proximate Services → Advertising

## Revenue by geography

No geographic revenue breakdown was disclosed.

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

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 15,652 | 12.1% | S100X63F |
| Capital expenditure | 1,478 | 1.1% | S100X63F |
| Free cash flow | 14,174 | 10.9% | 算出 |
| Investing cash flow | -11,697 | -9.0% | S100X63F |
| Financing cash flow | -1,192 | -0.9% | S100X63F |
| Share buyback | 999 | 0.8% | S100X63F |
| Change in cash | 2,755 | 2.1% | S100X63F |
| Cash and equivalents | 23,600 | 18.2% | S100X63F |

## 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 Aug 2021 | FY ending Aug 2022 | FY ending Aug 2023 | FY ending Aug 2024 | FY ending Aug 2025 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 14,147 | 12,899 | 17,551 | 20,844 | 23,600 | S100SDFR, S100UVHV, S100X63F |
| Total assets | 34,272 | 40,230 | 49,530 | 62,717 | 77,001 | S100PPZT, S100SDFR, S100UVHV, S100X63F |
| Net assets | 22,683 | 26,007 | 29,578 | 34,522 | 41,037 | S100SDFR, S100UVHV, S100X63F |
| Share capital | 12 | 77 | 11 | 21 | 21 | S100PPZT, S100SDFR, S100UVHV, S100X63F |
| Inventories | 604 | 799 | 733 | 977 | 1,626 | S100PPZT, S100SDFR, S100UVHV, S100X63F |
| Property, plant and equipment | 805 | 1,194 | 1,961 | 6,818 | 7,923 | S100PPZT, S100SDFR, S100UVHV, S100X63F |
| Intangible assets excluding goodwill | 7,448 | 7,461 | 10,428 | 13,877 | 12,188 | S100PPZT, S100SDFR, S100UVHV, S100X63F |
| Goodwill | 6,485 | 6,488 | 8,997 | 9,262 | 7,866 | S100PPZT, S100SDFR, S100UVHV, S100X63F |
| Investment securities | 3,598 | 7,469 | 3,081 | 1,145 | 9,583 | S100PPZT, S100SDFR, S100UVHV, S100X63F |
| Current assets | 21,305 | 22,423 | 30,513 | 37,022 | 43,123 | S100PPZT, S100SDFR, S100UVHV, S100X63F |
| Current liabilities | 8,596 | 11,726 | 18,319 | 19,653 | 25,028 | S100PPZT, S100SDFR, S100UVHV, S100X63F |
| Short-term borrowings | — | 20 | 2,470 | 50 | — | S100SDFR, S100UVHV, S100X63F |
| Long-term borrowings | 2,672 | 2,306 | 1,367 | 6,671 | 8,504 | S100PPZT, S100SDFR, S100UVHV, S100X63F |
| Total liabilities | 11,588 | 14,222 | 19,951 | 28,195 | 35,963 | S100PPZT, S100SDFR, S100UVHV, S100X63F |
| Non-controlling interests | 287 | 359 | 451 | 482 | — | S100PPZT, S100SDFR, S100UVHV, S100X63F |
| Equity attributable to owners of parent | 22,087 | 25,386 | 28,809 | 33,964 | 40,516 | S100PPZT, S100SDFR, S100UVHV, S100X63F |
| Retained earnings | 6,682 | 11,655 | 17,901 | 23,029 | 31,964 | S100PPZT, S100SDFR, S100UVHV, S100X63F |
| Treasury stock | -972 | -2,963 | -4,948 | -4,940 | -5,834 | S100PPZT, S100SDFR, S100UVHV, S100X63F |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 31% | S100X63F |
| Inventories | 2% | S100X63F |
| Property, plant and equipment | 10% | S100X63F |
| Intangibles and goodwill | 26% | S100X63F |
| Investment securities | 12% | S100X63F |
| Other assets | 19% | S100X63F |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 47% | S100X63F |
| Equity | 53% | S100X63F |
| Other liabilities | 0% | S100X63F |

### Balance sheet history

| Metric | FY ending Aug 2021 | FY ending Aug 2022 | FY ending Aug 2023 | FY ending Aug 2024 | FY ending Aug 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 34,272 | 40,230 | 49,530 | 62,717 | 77,001 |
| Equity | 22,683 | 26,007 | 29,578 | 34,522 | 41,037 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 14,147 | 12,899 | 17,551 | 20,844 | 23,600 |

## 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) | 6.1% | S100X63F |
| Fixed assets ÷ total assets | 10.3% | S100X63F |
| Goodwill ÷ parent equity | 19.4% | S100X63F |

Goodwill over 4 years: 6,485 → 7,866 JPY; total investing cash flow: -36,483 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) | 30.6% |
| Cash ÷ revenue | 18.2% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 100.2% |
| Cash vs. profit gap | 6,717 JPY mn (of net income 75.2%) |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | — |
| Shareholder payments — dividends / FCF | — |
| CapEx intensity (capex ÷ revenue) | 1.1% |
| Investing CF relative to operating CF | 74.7% |

## 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 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2021 | 6.1% | 1.34× | 8.2% | 1.55× | 12.8% | S100PPZT |
| 2022 | 7.7% | 1.74× | 13.4% | 1.57× | 21.0% | S100SDFR |
| 2023 | 7.1% | 1.96× | 13.9% | 1.66× | 23.0% | S100UVHV |
| 2024 | 4.6% | 1.97× | 9.1% | 1.79× | 16.3% | S100X63F |
| 2025 | 6.9% | 1.86× | 12.8% | 1.88× | 24.0% | S100X63F |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 丹下 大 | Major shareholder | 30.6% | 2025-08-31 |
| 日本マスタートラスト信託銀行株式会社(信託口） | Major shareholder | 11.2% | 2025-08-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 8.0% | 2025-08-31 |
| STATE STREET BANK AND TRUST COMPANY 505001（常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 7.2% | 2025-08-31 |
| STATE STREET BANK AND TRUST COMPANY 505025（常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 2.9% | 2025-08-31 |
| JP JPMSE LUX RE BARCLAYS CAPITAL SEC LTD EQ CO （常任代理人 株式会社三菱ＵＦＪ銀行） | Major shareholder | 1.3% | 2025-08-31 |
| 日本マスタートラスト信託銀行株式会社（株式付与ESOP信託口・75876口） | Major shareholder | 1.2% | 2025-08-31 |
| STATE STREET BANK WEST CLIENT - TREATY 505234 （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 0.9% | 2025-08-31 |
| 小林 元也 | Major shareholder | 0.8% | 2025-08-31 |
| STATE STREET BANK AND TRUST COMPANY 505103 （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 0.8% | 2025-08-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第20期(2024/09/01－2025/08/31) | S100X63F | 2025-11-21 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100X63F,, |
| 有価証券報告書－第19期(2023/09/01－2024/08/31) | S100UVHV | 2024-11-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100UVHV,, |
| 有価証券報告書－第18期(2022/09/01－2023/08/31) | S100SDFR | 2023-11-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100SDFR,, |
| 訂正有価証券報告書－第17期(令和3年9月1日－令和4年8月31日) | S100PPZT | 2022-12-13 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100PPZT,, |
| 有価証券報告書－第16期(令和2年9月1日－令和3年8月31日) | S100MYNI | 2021-11-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100MYNI,, |
| 有価証券報告書－第15期(令和1年9月1日－令和2年8月31日) | S100K9M6 | 2020-11-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100K9M6,, |

## 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).