Atled Q1 FY2026 slides: Revenue up 8.4% as cloud services drive growth

Introduction & Market Context

Atled Corp (TSE:3969), a leading provider of workflow management solutions, reported its first quarter fiscal year 2026 results on July 24, 2025, showing continued revenue growth driven primarily by its cloud services business. The company, which recently reached a milestone of 5,000 customers, has been successfully transitioning from a traditional software package model to a cloud-based subscription model.

Atled’s stock closed at 1510 yen on September 8, 2025, trading within its 52-week range of 1300-1695 yen. The company continues to maintain its #1 market share position in the SaaS workflow and SMB SaaS workflow segments for the 13th consecutive year.

Quarterly Performance Highlights

Atled reported solid financial results for Q1 FY2026, with revenue increasing 8.4% year-over-year to 695 million yen, up from 641 million yen in the same period last year. Operating profit rose 4.4% to 223 million yen, while net profit increased 1.8% to 142 million yen.

The growth was primarily driven by a 31.2% increase in cloud service revenue, which more than offset a 12.2% decrease in package sales. The company noted that increased raw material prices were successfully absorbed by the revenue growth.

As shown in the following chart summarizing the first quarter earnings:

The company’s quarterly revenue has shown consistent growth over the past five years, with an increasing proportion coming from recurring "stock" revenue rather than one-time "flow" revenue. The stock ratio has increased from 74.1% in Q1 FY2021 to 90.0% in Q1 FY2026, indicating a highly stable business model.

The following chart illustrates this long-term revenue trend and the increasing proportion of recurring revenue:

Cloud Transition Strategy

Atled’s strategic shift toward cloud services continues to gain momentum. The product revenue breakdown shows cloud revenue increasing significantly over the past five years, now representing 57.5% of total revenue compared to 33.7% in Q1 FY2021.

This product mix evolution is clearly illustrated in the following chart:

The company highlighted several factors driving this transition, including increasing cloud adoption among customers and the planned end-of-service for older products. Notably, X-point Cloud is now eligible for IT subsidies in 2025, which the company expects will make it easier for customers to implement the solution.

Operating profit has remained strong despite increased investments in cloud infrastructure and personnel. The operating profit margin for Q1 FY2026 was 32.1%, slightly down from 33.3% in the previous fiscal year, but still indicating a highly profitable business model.

The following chart shows the operating profit variance analysis:

Financial Outlook

Looking ahead, Atled forecasts continued growth for the full fiscal year 2026, with total revenue projected at 3,120 million yen. The company expects cloud sales to be the primary driver of growth, forecasting cloud revenue to increase from 1,360 million yen in FY2025 to 1,749 million yen in FY2026.

The revenue forecast by product line is illustrated in the following chart:

For operating income, the company forecasts 1,170 million yen for FY2026, representing a 10.6% increase from 1,058 million yen in FY2025. While package sales are expected to decrease by 35 million yen, and costs are projected to increase across human resources (+112 million yen), depreciation (+64 million yen), and cloud infrastructure (+25 million yen), these will be more than offset by the growth in cloud service revenue.

The operating income forecast breakdown is shown in the following chart:

The company’s Q1 FY2026 progress rate is slightly below its five-year average, with sales at 22.3% of the full-year forecast compared to the historical average of 22.6%. Similarly, operating income is at 19.1% versus the historical 20.0%, and net income at 18.2% versus 19.6%.

Market Position and Strategic Initiatives

Atled has maintained its leadership position in the workflow management market, with the #1 market share in SaaS workflow and SMB SaaS workflow segments. The company highlighted its 99% continuous contract rate, demonstrating strong customer retention.

The company’s revenue structure shows a healthy balance between cloud (49%) and package (51%) revenue, with a high stock ratio of 83% providing stability and predictability to the business.

As shown in the following revenue structure chart:

Atled’s milestone of reaching 5,000 customers underscores its market penetration and brand recognition. The company reaffirmed its vision of "Workflow Power to All Companies" and continues to focus on its core values of user empathy, continuous evolution, security, embracing challenges, and collaboration.

With its strong market position, high recurring revenue, and successful cloud transition strategy, Atled appears well-positioned to continue its growth trajectory in the workflow management market.

Full presentation:

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