Worth reading
58In 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
798
¥ million (year-on-year increase in interim-period revenue)Wording
Conditional
How definitive the wording is.Contents of this document
Presentation materials for financial resultsSecond quarter (interim period) of the fiscal year ending February 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥14,192 million+6.0%
Operating profit¥52 million-80.2%
Ordinary income¥-5 million
Net income¥77 million
Results for the three months of the current quarter
Net Sales
¥7,199 million
Operating profit
¥399 million
Ordinary income
¥357 million
Net income
¥256 million
Full-year earnings forecast
Net Sales
¥28,505 million
Operating profit
¥785 million
Ordinary income
¥558 million
Net income for the current fiscal year
¥200 million
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales49.8
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Broadly within the assumptions of the initial plan and progressing steadily toward achieving the full-year earnings forecastBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Interim Operating Profit DeclineHuman capital investment and restructuring costs, and seasonal fluctuations in the cram school business
Interim Net Income Improvement
Impairment loss
Prior-year period¥157 million
Current fiscal year¥16 million
Second-Quarter ImprovementThe loss recognized in the first quarter due to human capital investment and restructuring costs was recovered in the second quarter
New initiatives
- Closing 16 unprofitable classrooms and opening new classrooms in the Tokyo metropolitan area
- Integration of 4 affiliated companies in the Japanese-language education business
- Opening the HOPPA Nagaokakyo School after-school club
- Opening the Pita Lab Otsu Ojikoyama rehabilitation fitness facility
- Filing a patent application for technology supporting AI-based people-facing services through a joint PoC with LangGenius
- Introduction of an Employee Stock Benefit Trust
- Establishment of Kyoshin Digital Academy, a DX and digital talent development platform
Key KPIsA metric the company considers important as a management benchmark.
- New-year enrollment at the 2 major brandsSolid compared with the previous yearYear on year against the same period last yearSteady
- Student count at existing schools, excluding closed schoolsSignificantly above the previous yearYear on year against the same period last yearIncreased
- Number of employees2,195 People
- New graduate hires with teaching backgroundsMore than 30%
Segment results
Interim Period: 6 Months
Cram-school business
Net Sales
¥4,789 million
Year-on-Year Change in Revenue (%)0.5
Segment profit
¥487 million
Profit year-on-year change_pct-1.2
Language-related business
Net Sales
¥2,184 million
Year-on-Year Change in Revenue (%)3.1
Segment profit
¥-57 million
Childcare and nursing-care business
Net Sales
¥7,219 million
Year-on-Year Change in Revenue (%)10.9
Segment profit
¥367 million
Profit year-on-year change_pct-40.5
Second Quarter: 3 Months
Cram-school business
Net Sales
¥2,756 million
Year-on-Year Change in Revenue (%)1.4
Segment profit
¥594 million
Profit year-on-year change_pct11.2
Language-related business
Net Sales
¥1,058 million
Year-on-Year Change in Revenue (%)3.1
Segment profit
¥3 million
Profit year-on-year change_pct-90.1
Childcare and nursing-care business
Net Sales
¥3,385 million
Year-on-Year Change in Revenue (%)14.8
Segment profit
¥215 million
Profit year-on-year change_pct299.4
Medium-term management plan targets
Medium- to Long-Term Management Policy 2035
Consolidated revenue400 %
Revenue unitHundreds of millions of yen
Consolidated operating margin10 %
Medium-Term Management PlanUnder review and consideration with a view to announcing it in April 2027
Number of stores and locations
Tutoring schools16 classrooms closed and 2 classrooms opened in the Tokyo metropolitan area in spring 2026
Number of Major Brand Locations218 School One classrooms, 64 TOPΣ junior high and high school entrance exam schools, 9 university entrance exam schools, 11 Japanese-language schools, 21 English conversation schools, 1 overseas language school, and approximately 142 childcare, nursing care and other locations
Number of employees
Number of Employees2,195 people consolidated, as of the end of February 2026
Annual Dividend
Annual dividend per share¥7.81
End of period¥7.81
Payout ratio
30 %
TargetConsolidated payout ratio target of 30%
Acquisition of treasury shares
On 26 October 2026, treasury shares will be disposed of and a trust established for an employee stock benefit trust. The amount and number of shares under the acquisition limit are Not disclosed.| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | Second quarter (interim period) of the fiscal year ending February 2027 |
| Net Sales | ¥14,192 million (YoY +6.0%) |
| Operating profit | ¥52 million (YoY -80.2%) |
| Ordinary income | ¥-5 million |
| Net income | ¥77 million |
| Results for the three months of the current quarter | Net Sales ¥7,199 million / Operating profit ¥399 million / Ordinary income ¥357 million / Net income ¥256 million |
| Full-year earnings forecast | Net Sales ¥28,505 million / Operating profit ¥785 million / Ordinary income ¥558 million / Net income for the current fiscal year ¥200 million |
| Progress against full-year forecast | Net Sales 49.8 |
| Self-assessment against the plan | Broadly within the assumptions of the initial plan and progressing steadily toward achieving the full-year earnings forecast |
| Segment results | Interim Period: 6 Months Cram-school business Net Sales ¥4,789 million / Year-on-Year Change in Revenue (%) 0.5 / Segment profit ¥487 million / Profit year-on-year change_pct -1.2 / Language-related business Net Sales ¥2,184 million / Year-on-Year Change in Revenue (%) 3.1 / Segment profit ¥-57 million / Profit year-on-year change_pct Not disclosed / Childcare and nursing-care business Net Sales ¥7,219 million / Year-on-Year Change in Revenue (%) 10.9 / Segment profit ¥367 million / Profit year-on-year change_pct -40.5 / Second Quarter: 3 Months Cram-school business Net Sales ¥2,756 million / Year-on-Year Change in Revenue (%) 1.4 / Segment profit ¥594 million / Profit year-on-year change_pct 11.2 / Language-related business Net Sales ¥1,058 million / Year-on-Year Change in Revenue (%) 3.1 / Segment profit ¥3 million / Profit year-on-year change_pct -90.1 / Childcare and nursing-care business Net Sales ¥3,385 million / Year-on-Year Change in Revenue (%) 14.8 / Segment profit ¥215 million / Profit year-on-year change_pct 299.4 |
| Breakdown of Factors Affecting the Change | Interim Operating Profit Decline Human capital investment and restructuring costs, and seasonal fluctuations in the cram school business / Interim Net Income Improvement Impairment loss Prior-year period ¥157 million / Current fiscal year ¥16 million / Second-Quarter Improvement The loss recognized in the first quarter due to human capital investment and restructuring costs was recovered in the second quarter |
| Key KPIs | Indicator name New-year enrollment at the 2 major brands / Value Solid compared with the previous year / Year on year against the same period last year Steady, Indicator name Student count at existing schools, excluding closed schools / Value Significantly above the previous year / Year on year against the same period last year Increased, Indicator name Number of employees / Value 2,195 People / Year on year against the same period last year Not disclosed, Indicator name New graduate hires with teaching backgrounds / Value More than 30% / Year on year against the same period last year Not disclosed |
| Number of stores and locations | Tutoring schools 16 classrooms closed and 2 classrooms opened in the Tokyo metropolitan area in spring 2026 / Number of Major Brand Locations 218 School One classrooms, 64 TOPΣ junior high and high school entrance exam schools, 9 university entrance exam schools, 11 Japanese-language schools, 21 English conversation schools, 1 overseas language school, and approximately 142 childcare, nursing care and other locations |
| Number of employees | Number of Employees 2,195 people (consolidated, as of the end of February 2026) / Change during the period Not disclosed / Hiring plan Not disclosed |
| Medium-term management plan targets | Medium- to Long-Term Management Policy 2035 Consolidated revenue 400 % / Revenue unit Hundreds of millions of yen / Consolidated operating margin 10 % / Medium-Term Management Plan Under review and consideration with a view to announcing it in April 2027 |
| Annual Dividend | Annual dividend per share ¥7.81 / Interim Not disclosed / End of period ¥7.81 |
| Payout ratio | 30 % |
| Acquisition of treasury shares | On 26 October 2026, treasury shares will be disposed of and a trust established for an employee stock benefit trust. The amount and number of shares under the acquisition limit are Not disclosed. |
| New initiatives | Closing 16 unprofitable classrooms and opening new classrooms in the Tokyo metropolitan area, Integration of 4 affiliated companies in the Japanese-language education business, Opening the HOPPA Nagaokakyo School after-school club, Opening the Pita Lab Otsu Ojikoyama rehabilitation fitness facility, Filing a patent application for technology supporting AI-based people-facing services through a joint PoC with LangGenius, Introduction of an Employee Stock Benefit Trust, Establishment of Kyoshin Digital Academy, a DX and digital talent development platform |
Items this document does not state (11)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesUnit price and quantity metricsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsCapital expendituresOrders received and order backlogMarket Size / ShareKey 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.The factors behind the first-half profit decline were strategic investments, including human capital investment and restructuring costs, and seasonal fluctuations in the cram school business. The return to a net profit was due to a significant decrease in impairment losses. Factors cited for the improvement in the second quarter alone included strong performance in the cram school business, stable earnings contributions from the childcare and nursing care businesses, and the cost-control effects of restructuring.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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