Cross Marketing : FY2026/6 Q3 Analyst Report (Shared Research)

Coverage initiated on: 2022 11 29 Last update: 2026 05 14

3675

Cross Marketing Group

Company Name

Cross Marketing Group Inc.

Head Office

Tokyo Opera City, 3 20 2 Nishi-Shinjuku, Shinjuku-ku, Tokyo

Listed On

Tokyo Stock Exchange, Standard Market

Fiscal Year-End Jun

Established 2013 06 03

Exchange Listing 2013 06 03

Shared Research Inc. has produced this report by request from the company discussed in the report. The aim is to provide an "ownerʼs manual" to investors. We at Shared Research Inc. make every effort to provide an accurate, objective, and neutral analysis. In order to highlight any biases, we clearly attribute our data and findings. We will always present opinions from company management as such. Our views are ours where stated. We do not try to convince or influence, only inform. We appreciate your suggestions and feedback. Write to us at [e-mail].

Research Coverage Report by Shared Research Inc.

Table of Contents

Executive summary 4

Business overview 4

Earnings trends 5

Strengths and weaknesses 5

Key financial data 7

Recent updates 8

Trends and outlook 10

Quarterly trends and results 10

Cumulative Q3 FY06/26 results (out May 14, 2026 11

FY06/26 company forecast 12

Historical initial forecasts versus results 13

Medium-term outlook 14

Business 16

Review of the previous medium-term management plan (reference) 15

Business overview 16

Targeted management indicators 16

Business segments 16

Group companies 18

CMG's customer base 20

Business overview by segment 20

Digital Marketing 20

Research Insight 23

M&A, business alliances, and establishment of new companies 28

Market and value chain 30

Market strategy 30

Global insight market 30

Domestic digital transformation market 30

Domestic marketing research market 30

Peers 30

Intage Holdings Inc. TSE Prime: 4326 34

Macromill, Inc. (unlisted) 34

Members Co., Ltd. TSE Prime: 2130 34

Orchestra Holdings Inc. TSE Prime: 6533 34

Macbee Planet, Inc. TSE Growth: 7095 34

Strengths and weaknesses 34

Strengths 34

Weaknesses 35

Historical results and financial statements 37

1H FY06/26 results (out February 12, 2026 37

Q1 FY06/26 results (out November 14, 2025 39

Full-year FY06/25 results (out August 12, 2025 41

Cumulative Q3 FY06/25 results (out May 15, 2025 42

Income statement 45

Balance sheet 47

Assets 47

Liabilities 48

Net assets 48

Other information 49

Cash flow statement 48

History 49

Corporate governance 51

Shareholder returns 51

Top management 51

Environment 52

Corporate governance 52

Corporate governance overview 52

Employees 52

News and topics 53

‌Executive summary

‌Business overview

Cross Marketing Group Inc. TSE Standard: 3675; CMG provides marketing DX solutions, supporting client companies comprehensively by leveraging digital transformation DX in their marketing activities. Marketing DX refers to the use of advanced digital technologies to efficiently collect and analyze data in order to better understand consumers and enable effective targeting and personalized marketing initiatives. Since its founding, CMG has built one of the largest online panel networks in Japan through internet-based research. Leveraging this panel network, the company offers optimal promotional and sales support based on research findings. In addition to research, CMG also develops smartphone apps, builds websites, conducts influencer marketing, and operates media platforms that support sales promotions.

CMG was established in 2003 by its current President and CEO, Mikio Igarashi, to launch an internet research business. In 2011, the company acquired part of the mobile solutions business from Index Corporation, marking its entry into the system development and operations field. That same year, CMG established a local subsidiary in China, followed by one in Singapore in 2013. In 2014, it acquired shares in Kadence International Business Research Pte. Ltd., making it a consolidated subsidiary, as part of its overseas expansion strategy. To date, the company has completed 25 M&A transactions involving 39 companies, aiming to broaden its business domains and deepen its expertise. As of end-June 2025, the CMG Group comprises 31 consolidated subsidiaries and one equity-method affiliate.

In FY06/25, CMG reported revenue of JPY28.9bn, operating profit of JPY2.5bn, and an operating profit margin of 8.7%. Over the past 10 years, the company achieved a CAGR of 6.9% for revenue and 7.4% for operating profit. From FY06/26, CMG began applying a new business segment structure. Restating FY06/25 results under the new segmentation, Digital Marketing accounted for 43.3% of revenue with an operating profit margin of 7.2%, while Research Insight accounted for 56.7% of revenue with a margin of 23.3%. Over the past 10 years, revenue CAGR was 20.4% for Digital Marketing and 2.4% for Research Insight. The company has a broad customer base of over 7,800 companies across diverse industries, with no reliance on any specific client.

The Digital Marketing business comprises three subcategories: social & digital promotion (approx. 66% of segment revenue), SI/DX consulting (approx. 17% , and marketing HR (approx. 17% . Within the social & digital promotion subcategory, the company provides IP/influencer marketing services and operates a sampling media platform.

IP/influencer marketing involves promotional campaigns that link client products with intellectual property IP content-such as anime characters-or with influencers. In its sampling media business, the company operates the e-commerce site Moratame.net, through which it distributes client products to its members either free of charge or for a nominal fee. Members then provide product evaluations and comments, which the company aggregates and delivers as feedback to clients.

SI/DX consulting provides design, development, operation, and maintenance services for client websites and applications. The company has a strong track record in developing and operating smartphone apps for securities firms and banks. Marketing HR offers outsourcing and staffing services in the digital marketing domain. Specifically, the company supports recruitment of engineers, marketers, and creators, and also dispatches directors and engineers to client companies.

The core service of the Research Insight segment is online research conducted via the internet, leveraging one of the largest panel networks in the industry, with approximately 14.1mn registered panelists as of end-June 2025. Panels consist of pre-registered respondents with diverse attributes who are available to participate in surveys. Compared to traditional methods such as in-person or mail-based surveys, online research offers significantly faster turnaround times and lower costs. Clients can initiate surveys starting at JPY90,000 for 10 questions and 100 responses, with results available in as little as two days.

In addition to online research, the company leverages its panel network to conduct group interviews, central location tests, and in-store surveys. Group interviews involve gathering approximately eight participants for roundtable-style discussions. In central location tests, pre-recruited participants are invited to a designated venue to, for example, sample or taste products and complete surveys on-site. Combined, the company conducts approximately 1,000 offline research projects annually.

Approximately 70% of revenue in the Research Insight segment is generated in Japan, with the remaining 30% coming from overseas. The company operates research bases in the US, UK, China, India, Thailand, Singapore, Indonesia,

Vietnam, and the Philippines. The company experienced a period of weak profitability in its overseas business, but structural reforms implemented between FY12/17 and FY12/19 improved performance.

Over the 10 years through FY06/25, CMGʼs operating profit margin ranged between 4.3% and 10.1%. Due to the companyʼs diverse business portfolio, analyzing cost components in detail is challenging. During the same period, the cost ratio ranged from 58.5% to 63.2%, and the SG&A ratio from 29.6% to 35.2%. Although the company does not disclose a detailed breakdown of cost of revenue, approximately 30% consists of outsourcing fees and around 20% is labor costs. Personnel expenses account for the majority of SG&A. Over the past six years, segment-level operating profit margins (before intersegment adjustments) ranged from 5.2% to 9.7% for Digital Marketing and from 17.4% to 25.2% for Research Insight. Although the company has actively pursued M&A, goodwill amortization in FY06/25 accounted for only 0.9% of revenue.

In FY2024, the domestic marketing research market was worth JPY241bn (source: Japan Marketing Research Associationʼs "Fact-Finding Survey of Management Operations"). Shared Research believes CMG to be third in terms of revenue scale, following Intage Holdings Inc. TSE Prime: 4326 and Macromill, Inc. (unlisted). Established in March 1960, Intage Holdings has a long track record in nationwide consumer and retailer panel surveys that regularly collect information from panelists. Established in January 2000, Macromill was a pioneer in the area of online research.

CMG aims to be a marketing DX partner for its clients by providing total marketing support. For this reason, it believes its competitors to be closer in style to Dentsu Digital Inc. (unlisted), which is more steeped in the online domain when compared to other members of Dentsu Group Inc. TSE Prime: 4324 than it is when compared to online advertising agencies or to marketing research firms such as Intage Holdings and Macromill. According to Fuji Chimera Research Institute, Inc., the domestic digital transformation DX market is projected at JPY4.0tn in FY2023 and is expected to grow to JPY8.0tn by FY2030.

‌Earnings trends

In FY06/25, the company reported revenue of JPY28.9bn 10.4% YoY , operating profit of JPY2.5bn 36.8% YoY , recurring profit of JPY2.4bn 25.5% YoY , and net income attributable to owners of the parent of JPY1.4bn 13.7% YoY . Both revenue and operating profit reached record highs. Double-digit revenue and profit growth in the Data Marketing and Digital Marketing businesses drove overall results, while the Insight business saw declines in both revenue and profit due to weakness in Indonesia and Singapore.

For FY06/26, the company forecasts revenue of JPY32.0bn 10.7% YoY , operating profit of JPY2.8bn 11.0% YoY , recurring profit of JPY2.7bn 12.5% YoY , and net income attributable to owners of the parent of JPY1.6bn 14.3% YoY . The company will revise its segment classifications. It expects revenue in Digital Marketing to rise 18.2% YoY and in the Research Insight segment to grow 5.0% YoY.

In August 2025, the company announced its medium-term management policy, aiming to achieve revenue of JPY50.0bn and operating profit of JPY5.0bn within five years. In the Digital Marketing business, it will focus strategically on marketing HR and IP/influencer marketing, targeting average annual revenue growth of 20%. In the Research Insight segment, it plans to deepen and expand its presence in the consulting and insight domains, while generating synergies with the Digital Marketing business.

‌Strengths and weaknesses

Shared Research views the companyʼs strengths as the following:

High growth rate and capital efficiency realized by transitioning from being a comprehensive research firm to being a marketing DX solutions firm

Rapid business development due to a corporate culture born from the companyʼs vision ("Just go for it!") and policy (one aspect of which is "Getting past failure")

Use of its own e-commerce sites, Moratame.net and Tentame!, to obtain consumer evaluations through unconventional methods, complementing its capacity to provide clients with comprehensive marketing support as a marketing DX partner