Komori
Earnings presentation2175SMS CO.,LTD.Information and Communications, Services and Others

Financial Results Briefing Materials for the Fiscal Year Ending March 2026

Although the fiscal year ended March 2026 secured higher revenue and profit, results fell short of the initial plan due to revenue shortfalls in the Career and Overseas businesses and growth investments. The Company posted a net loss following a ¥22.9 billion impairment loss on the Overseas business. It also presented a growth roadmap targeting revenue of at least ¥122 billion, EBITDA of at least ¥28 billion and ROE of at least 30% for the fiscal year ending March 2031, together with its plan for the fiscal year ending March 2027.

Worth reading
71In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
229
¥100 million (impairment loss on the Overseas business)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFiscal year ending March 2026, full year12 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥64,735 million+6.0%
Operating profit¥6,787 million+7.0%
Ordinary income¥8,721 million+4.0%
Net income¥-14,317 million
Full-year earnings forecast
Net Sales
¥71,834 million
EBITDA
¥10,431 million
Operating profit
¥6,801 million
Ordinary income
¥8,731 million
Net income for the current fiscal year
¥6,165 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Below the initial plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Impairment loss on trademark rights¥13,041 million
  • Goodwill Impairment Losses¥8,649 million
  • Software impairment loss¥677 million
  • Impairment loss on customer-related assets¥589 million
New initiatives
  • Establishment of a corporate value enhancement committee
  • Building the Career business into an AI-enabled platform
  • Development of Kai Poké Connect
  • Strengthening the sales organization for Kabenashi Cloud
  • Disclosure based on 3 segments from the fiscal year ending March 2027
  • Planned overhaul of the Board of Directors structure and compensation system
Key KPIsA metric the company considers important as a management benchmark.
  • Kaipoke subscribers60,800 Facility
  • Net increase in Kai Poké members for the full year5,250 Facility
  • Number of corporate entities using Kai Poké27,000 organizations
  • CP headcount1,540 People average during period
    Year on year against the same period last year-6.5%
  • Productivity of the recruitment business¥22.9 million/person
    Year on year against the same period last year+6.5%
  • Monthly Kai Poké churn rate0.6 Below %
  • Kai Poké ARR¥135 100 million
Segment results
Career
Net Sales
¥38,279 million+6.0%
EBITDA
¥7,815 million+10.0%
Care and Disability-Welfare Management Support
Net Sales
¥13,471 million+14.0%
EBITDA
¥6,091 million+17.0%
Overseas expansion
Net Sales
¥8,851 million-6.0%
EBITDA
¥1,336 million-19.0%
Medium-term management plan targets
Target fiscal yearFiscal year ending March 2031
Net SalesAt least ¥122 billion
EBITDAAt least ¥28 billion
ROEAt least 30% (as early as possible)
Financial targets
ROE
TargetAt least 30%
Actual results△39%
Market Size / Share
  • Long-term care and disability welfare market42.9 10,000 offices
  • Kai Poké paid-member share14 %
  • Home-care connectivity share62 %
  • Career revenue share (FY25)20 %
Number of employees
Changes during the period and hiring planAggressive year-round hiring of CPs in the fiscal year ending March 2027
Annual Dividend
Fiscal year ending March 2026¥29.5/share
Forecast for the fiscal year ending March 2027Forecast: ¥30.5/share
Payout ratio
Approximately 30% (capital policy)
Acquisition of treasury shares
To be conducted flexibly depending on financial conditions and the share price. The Representative Director and President is expected to purchase a certain amount of shares in the market.
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥64,735 million (YoY +6.0%)
Operating profit¥6,787 million (YoY +7.0%)
Ordinary income¥8,721 million (YoY +4.0%)
Net income¥-14,317 million
Full-year earnings forecastNet Sales ¥71,834 million / EBITDA ¥10,431 million / Operating profit ¥6,801 million / Ordinary income ¥8,731 million / Net income for the current fiscal year ¥6,165 million
Self-assessment against the planBelow the initial plan
Segment resultsCareer Net Sales ¥38,279 million (YoY +6.0%) / EBITDA ¥7,815 million (YoY +10.0%) / Care and Disability-Welfare Management Support Net Sales ¥13,471 million (YoY +14.0%) / EBITDA ¥6,091 million (YoY +17.0%) / Overseas expansion Net Sales ¥8,851 million (YoY -6.0%) / EBITDA ¥1,336 million (YoY -19.0%)
Breakdown of Factors Affecting the ChangeFactors Impairment loss on trademark rights / Amount ¥13,041 million, Factors Goodwill Impairment Losses / Amount ¥8,649 million, Factors Software impairment loss / Amount ¥677 million, Factors Impairment loss on customer-related assets / Amount ¥589 million
Key KPIsIndicator name Kaipoke subscribers / Value 60,800 Facility / Year on year against the same period last year Not disclosed, Indicator name Net increase in Kai Poké members for the full year / Value 5,250 Facility / Year on year against the same period last year Not disclosed, Indicator name Number of corporate entities using Kai Poké / Value 27,000 organizations / Year on year against the same period last year Not disclosed, Indicator name CP headcount / Value 1,540 People (average during period) / Year on year against the same period last year -6.5 People (average during period), Indicator name Productivity of the recruitment business / Value ¥22.9 million/person / Year on year against the same period last year ¥6.5 million/person, Indicator name Monthly Kai Poké churn rate / Value 0.6 Below % / Year on year against the same period last year Not disclosed, Indicator name Kai Poké ARR / Value ¥135 100 million / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees Not disclosed / Changes during the period and hiring plan Aggressive year-round hiring of CPs in the fiscal year ending March 2027
Medium-term management plan targetsTarget fiscal year Fiscal year ending March 2031 / Net Sales At least ¥122 billion / EBITDA At least ¥28 billion / ROE At least 30% (as early as possible)
Financial targetsROE Target At least 30% / Actual results △39%
Annual DividendFiscal year ending March 2026 ¥29.5/share / Forecast for the fiscal year ending March 2027 Forecast: ¥30.5/share / Breakdown Not disclosed
Payout ratioApproximately 30% (capital policy)
Acquisition of treasury sharesTo be conducted flexibly depending on financial conditions and the share price. The Representative Director and President is expected to purchase a certain amount of shares in the market.
Market Size / ShareSubject Long-term care and disability welfare market / Value 42.9 10,000 offices, Subject Kai Poké paid-member share / Value 14 %, Subject Home-care connectivity share / Value 62 %, Subject Career revenue share (FY25) / Value 20 %
New initiativesEstablishment of a corporate value enhancement committee, Building the Career business into an AI-enabled platform, Development of Kai Poké Connect, Strengthening the sales organization for Kabenashi Cloud, Disclosure based on 3 segments from the fiscal year ending March 2027, Planned overhaul of the Board of Directors structure and compensation system
Items this document does not state (12)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In the Career business, revenue growth was constrained by longer lead times before job seekers started work and the discontinuation of retention bonuses for DR. In the Overseas business, growth was held back by reduced marketing budgets at pharmaceutical companies and worsening conditions in the Middle East. The Company also explained that it made investments to support medium- to long-term growth and conducted impairment testing for the Overseas business based on conservative assumptions.

How to read this page

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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Briefing Materials for the Fiscal Year Ending March 2026 | SMS CO.,LTD. (2175) timely disclosure | Komori