Soracom (147A) investor relations material

Financial profile and scale

• FY26 revenue ¥12.42bn; recurring revenue ¥9.29bn, up 41.7% YoY; EBITDA ¥1.22bn; operating profit ¥870m.

• ARR ¥11.0bn; global share of recurring revenue 48.0%; annual churn 0.4%; NRR 121% for FY26 versus FY25.

• More than 40,000 customers across industries; 197 employees, including 50 in the US and UK.

• FY31 sales ambition ¥50bn, with sales CAGR of 30%+, recurring revenue mix of 70–80%, inorganic mix of 20–30%, and organic EBITDA margin of 20%+.

Platform and competitive advantages

• Offers 23 services spanning devices, connectivity, cloud, and solutions, allowing customers to assemble IoT systems from modular services.

• Cloud-built proprietary mobile core supports cost efficiency and high-value services; more than 110 patents held as of September 2026.

• Global connectivity spans 583 carriers in 207 countries and regions; Gartner placed SORACOM among the 2026 leaders for managed IoT connectivity services.

• Self-service onboarding starts with one SIM and one device; recurring connectivity, cloud, and AI revenue can grow as customer projects expand.

AI opportunity and growth strategy

• Market focus is expanding from massive IoT and industrial DX to Physical AI, where video and AI drive higher data volumes and higher-value connectivity demand.

• AI adoption can lift recurring revenue through increased device connections, usage, cloud and security functions, and value-added services such as Flux, Query, and Agent.

• FY31 sales ambition of ¥50bn equates to about $3.3bn against estimated IoT connectivity SAM of $124.9bn and total IoT TAM of $1,239bn.

• Growth priorities include scaling core IoT, expanding overseas, serving connected-car and telecom markets, and using M&A to add regions, technology, and recurring services.

• New offerings include Physical AI Suite security and device-management functions, a cloud-native core for telecom operators, Automotive Suite, and an LTE-integrated SoraCamera model.