SmartHR Surpasses 30 Billion Yen in ARR, Employee Portal Area Including "AI Assistant" Grows into New Business Pillar

SmartHR, Inc. (Headquarters: Minato-ku, Tokyo; CEO: Masato Serizawa; hereinafter "the Company") is pleased to announce that the ARR (※1) for "SmartHR," a back-office system for people and organizations, has reached 30 billion yen. In addition to continuous product expansion, the employee portal area, led by "AI Assistant," has grown into a new business pillar, with SmartHR's free cash flow for June 2025-May 2026 reaching 17.5%.

The Company is developing a product strategy that combines the HR data accumulated in "SmartHR" with new technologies centered on AI to strongly support companies in practicing "talent strategy and organizational strategy" in a rapidly changing labor environment, aiming for continued business growth and expanded value provision.

Since its release in 2015, "SmartHR" has expanded its products to support all working people, including labor functions that support paperless operations and operational efficiency for HR and labor procedures, and talent management functions that promote human capital management. Following its achievement of 10 billion yen in ARR in February 2023 and 20 billion yen in ARR in April 2025, the Company has continued to expand its products as a service supporting the entire back office, and has now surpassed 30 billion yen in ARR in July 2026. From 2026 onwards, to achieve its goal of 100 billion yen in sales by 2030, the Company is accelerating the utilization of cash flow for M&A/strategic investments, and is working not only on its SaaS business but also on entering the IT consulting domain and strengthening its BPO business.

The employee portal area (employee-focused business platform), including "AI Assistant," which was launched in July 2025, has expanded its share in a short period since its release, surpassing 1 billion yen in ARR as of July 2026 and growing into a new business pillar for the Company. This area consists of a suite of products that support smooth communication between employees and HR/labor staff/back-office personnel, including "AI Assistant," "Announcement Function," "Messages," "General Application," and the "Smartphone App" with over 2 million installations.

Notably, "AI Assistant" has exceeded 900 adopting companies within one year of its release, with the cumulative number of automated inquiry responses reaching 150,000, and continues to grow at an accelerating pace.

SmartHR's "AI Assistant" Exceeds 150,000 Automated Inquiry Responses in Approximately One Year Since Launch

※ARR (Annual Recurring Revenue): Annual Recurring Revenue

New Product Strategy to Promote the Practice of Talent and Organizational Strategy

The current Japanese labor environment is facing structural changes, such as a rapid decline in the working population and a shift towards labor mobility due to the diversification of values regarding work. Amidst record-high numbers of people seeking new jobs (※2), it is essential for companies to practice data-driven, scientific "talent strategy and organizational strategy" that does not rely on past experience or intuition, in order to remain "employers of choice" and drive management strategies.

By conducting daily labor and HR procedures, such as onboarding, attendance management, and performance reviews, within the "SmartHR" system, up-to-date data on people and organizations is accumulated naturally and accurately. The Company supports companies in practicing talent and organizational strategies by combining the HR data accumulated through daily operations with the latest technologies centered on AI.

1. AI Agent to Resolve "Unseen Tasks" in HR and Labor

In addition to regular duties, HR and labor staff handle a wide range of unseen tasks, including responding to employee inquiries, information sharing and coordination with various departments, and outputting/processing employee data. The Company is developing AI agents to support these tasks from both employee and back-office staff perspectives.

AI Agent for Employees

An AI agent for employees that can guide information and tasks related to "work," not just documents and internal rules.

By inputting work rules and internal regulations, the AI provides 24-hour responses to employee questions and inquiries.

AI Agent for Back-Office Staff

An AI agent that acts as a "right-hand" for back-office staff, handling various settings and operations within SmartHR, and automating some routine tasks.

The AI agent executes operations that back-office staff want to perform on SmartHR on their behalf, and automates routine tasks.

2. "Comparative Data" Feature to Strongly Support Data-Driven Decision-Making in HR and Management

Organizational data registered in SmartHR for companies that have granted permission for data utilization will be statistically processed using AI, including LLMs, in a way that does not identify individuals or companies, enabling cross-organizational comparisons. This feature allows companies to objectively grasp their position relative to industry standards, such as average annual salary by industry and size, age composition, and departmental ratios, without the need for time or cost, thereby supporting data-driven decision-making in HR and management.

3. AI Agent "AI HRBP" Capable of Answering All Consultations Regarding a Company's Employees and Organization

This feature addresses two critical challenges facing Japanese companies: "business restructuring" and "training and promotion of internal human resources." Based on HR data registered in SmartHR, the AI searches for personnel who match complex nuances and conditions by combining skills, experience, and aptitudes. It supports managers' tasks by acting as an agent capable of answering all consultations regarding a company's employees and organization, including training and performance evaluation.

With continuously advancing technology and ingenuity, "SmartHR" aims to become an infrastructure company for "work" that streamlines operations across the entire back office and supports the creation of new organizations.

※2: Regarding Recent Trends of Job Changers and Those Wishing to Change Jobs (Statistics Bureau of Japan, Labor Force Survey Office)

About "SmartHR"

"SmartHR" is a back-office system for people and organizations that has been the No. 1 cloud labor management system in market share for 7 consecutive years (※3).

It digitizes various labor procedures such as employment contracts, onboarding, attendance management, and payroll calculation. Through its talent management functions that utilize employee data accumulated in "SmartHR," it promotes optimal personnel allocation and human resource development, supporting data-based human capital management. Furthermore, through the app store service "SmartHR Plus," it enhances customization for individual companies and achieves highly accurate and secure data integration.

Under the service vision of "worker-friendly - easy for all workers to use," SmartHR contributes to improving corporate productivity and creating an environment where everyone can work in their own way.

※3: "State and Outlook of the HRTech Cloud Market FY2025 Edition" by Deloitte Tohmatsu Mic Research Institute Co., Ltd., Labor Management Cloud Market/Shipment Value (FY2024)

About SmartHR, Inc.

Established on January 23, 2013. Launched the back-office system for people and organizations, "SmartHR," in November 2015. In addition to functions that achieve paperless operations and improve efficiency for labor management, including attendance and payroll calculation, it provides talent management functions such as "performance evaluation" and "placement simulation" that support organizational strategy by utilizing accumulated information, and "recruitment management" functions that centralize everything from recruitment activities to employee registration. Furthermore, it offers services that meet a wide range of customer needs through extensive integration with external systems and the app store "SmartHR Plus."

SmartHR aims to realize a society where everyone can work in their own way by eliminating social issues related to labor, and supports the improvement of productivity for all working people.

Company Profile

Company Name: SmartHR, Inc.

CEO: Masato Serizawa

Business Activities: Planning, development, operation, and sales of cloud HR and labor software "SmartHR"

Established: January 23, 2013

Capital: 100 million yen

Headquarters: Sumitomo Fudosan Roppongi Grand Tower, 3-2-1 Roppongi, Minato-ku, Tokyo

Company URL: https://smarthr.co.jp/