One of the standout sectors this earnings season is IT consulting, driven by Japanese companies’ urgent push to enhance their digital operations.

f-code is scheduled to report on August 14, 2025*, and while strong results are anticipated, even a potential miss wouldn’t undermine its long-term appeal. The company’s strategic positioning as a growth-through-M&A player within a resilient industry makes it a compelling investment opportunity, regardless of short-term fluctuations.

*I plan to meet with the management after their earnings.

I used to view M&A-driven growth as inherently risky, especially when acquisitions are financed through borrowed capital. However, if M&A activity follows a disciplined framework and additional funding does not result in dilution that outweighs EPS growth, it can be a strategic way to expand a company’s total addressable market (TAM) and workforce to pursue larger opportunities.

In my view, f-code exemplifies this approach. Operating and conducting M&As in the IT space—a sector where Japan faces an urgent need for modernization—f-code’s M&A execution appears conservative and well-structured. That’s why I believe f-code is in a stronger position, even compared to Genda, whose TAM lies in the entertainment industry. f-code CEO’s extensive experience running an IT consultancy since his time at the University of Tokyo further strengthens the company’s ability to successfully integrate acquired businesses.

I provide a detailed discussion of the company’s M&A strategy, its strong track record of successful acquisitions, and the key drivers behind its high operating profit margin in a note which is available for my clients.

If you’re interested in learning more about f-cord and its growth potential, I’d like to invite you to experience my service—completely free of charge. I am confident that once you discover the value, convenience, and quality I offer, you’ll be glad you gave me a try.