Contents of this document
- Provision of SRAISE, a generative AI tool specializing in social insurance and labor consultant services
- Provision of F&M OneGeNNect through a community focused on the use of generative AI for accounting firms
- Expansion of services into human resources management and development, including talent management and performance evaluations
- Accounting service membership113,502 people
- F&M Club membership14,817 people
- Office Station series membership60,440 users
- AI coverage of bookkeeping processes93.1 %
- Accounting service member app penetration rate96.6 %
- Number of companies implementing instructor-dispatch training1,854 companies
- Office Station MRR¥512 million
- Office Station ARR¥6,147 million
- Office Station CAGR34.9 %
- Labor management churn rate0.99 %
- Payroll statement churn rate1.2 %
- Time and attendance churn rate1.77 %
- Year-end tax adjustment churn rate1.01 %
- Pro churn rate0.36 %
- Accounting Services businessNet Sales2,387Operating profit695Year-on-year change in revenue10.5Operating profit, year on year20
- Consulting BusinessNet Sales5,473Operating profit2,123Year-on-year change in revenue37.1Operating profit, year on year74.9
- Business Solutions businessNet Sales3,365Operating profit-98Year-on-year change in revenue30.7
- Real Estate LeasingNet Sales54Operating profit13Year-on-year change in revenue1.6Operating profit, year on year5.2
- Systems development businessNet Sales157Operating profit-63Year-on-year change in revenue10.2
- Other BusinessesNet Sales20Operating profit-4Year-on-year change in revenue-32.5
- Number of income tax filers23,535,000 people
- Business income earners3,861,000 people
- Life insurance sales representatives185,200 people
- Percentage of our members among life insurance sales personnel60.7 %
- Labor management cloud market shareNo. 1 for 6 consecutive years
| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | Second quarter of the fiscal year ending March 2027 |
| Net Sales | ¥11,458 million (YoY +27.9%) |
| Operating profit | ¥1,997 million (YoY +113.1%) |
| Ordinary income | ¥2,029 million (YoY +111.7%) |
| Net income | ¥1,381 million (YoY +113.3%) |
| Gross Profit Margin | Rate 65.5% / Year-on-year change (points) -0.8 |
| Operating profit margin | Rate 17.4% / Year-on-year change (points) 6.9 |
| Selling, general and administrative expenses | ¥5,509 million |
| Full-year earnings forecast | Net Sales ¥25,675 million / Operating profit ¥4,994 million / Ordinary income ¥5,046 million / Net income ¥3,448 million / EBITDA ¥7,560 million |
| Self-assessment against the plan | Above plan |
| Segment results | Segment Accounting Services business / Net Sales ¥2,387 million / Operating profit ¥695 million / Year-on-year change in revenue ¥10.5 million / Operating profit, year on year ¥20 million, Segment Consulting Business / Net Sales ¥5,473 million / Operating profit ¥2,123 million / Year-on-year change in revenue ¥37.1 million / Operating profit, year on year ¥74.9 million, Segment Business Solutions business / Net Sales ¥3,365 million / Operating profit ¥-98 million / Year-on-year change in revenue ¥30.7 million / Operating profit, year on year Not disclosed, Segment Real Estate Leasing / Net Sales ¥54 million / Operating profit ¥13 million / Year-on-year change in revenue ¥1.6 million / Operating profit, year on year ¥5.2 million, Segment Systems development business / Net Sales ¥157 million / Operating profit ¥-63 million / Year-on-year change in revenue ¥10.2 million / Operating profit, year on year Not disclosed, Segment Other Businesses / Net Sales ¥20 million / Operating profit ¥-4 million / Year-on-year change in revenue ¥-32.5 million / Operating profit, year on year Not disclosed |
| Breakdown of Factors Affecting the Change | Revenue increased by ¥2,502 million. Expenses including outsourcing fees, personnel expenses and commission fees increased. Amounts for individual expense items: Not disclosed. |
| Key KPIs | Indicator name Accounting service membership / Value 113,502 people / Year on year against the same period last year Not disclosed, Indicator name F&M Club membership / Value 14,817 people / Year on year against the same period last year Not disclosed, Indicator name Office Station series membership / Value 60,440 users / Year on year against the same period last year Not disclosed, Indicator name AI coverage of bookkeeping processes / Value 93.1 % / Year on year against the same period last year Not disclosed, Indicator name Accounting service member app penetration rate / Value 96.6 % / Year on year against the same period last year Not disclosed, Indicator name Number of companies implementing instructor-dispatch training / Value 1,854 companies / Year on year against the same period last year Not disclosed, Indicator name Office Station MRR / Value ¥512 million / Year on year against the same period last year Not disclosed, Indicator name Office Station ARR / Value ¥6,147 million / Year on year against the same period last year Not disclosed, Indicator name Office Station CAGR / Value 34.9 % / Year on year against the same period last year Not disclosed, Indicator name Labor management churn rate / Value 0.99 % / Year on year against the same period last year Not disclosed, Indicator name Payroll statement churn rate / Value 1.2 % / Year on year against the same period last year Not disclosed, Indicator name Time and attendance churn rate / Value 1.77 % / Year on year against the same period last year Not disclosed, Indicator name Year-end tax adjustment churn rate / Value 1.01 % / Year on year against the same period last year Not disclosed, Indicator name Pro churn rate / Value 0.36 % / Year on year against the same period last year Not disclosed |
| Number of employees | Headcount in the sales division increased by 67 year on year. Total employee count and hiring plan: Not disclosed. |
| Medium-term management plan targets | Period Covered Fiscal years ending March 2026 to March 2028 / Net Sales Fiscal year ending March 2028 ¥25,675 million / Operating profit Fiscal year ending March 2028 ¥4,994 million / Accounting service membership Fiscal year ending March 2028 120,000 people / F&M Club membership Fiscal year ending March 2028 20,000 people / Office Station membership Fiscal year ending March 2028 70,000 people |
| Financial targets | Equity ratio Actual results 74.6 % / Other Not disclosed |
| Market Size / Share | Indicator Number of income tax filers / Value 23,535,000 people, Indicator Business income earners / Value 3,861,000 people, Indicator Life insurance sales representatives / Value 185,200 people, Indicator Percentage of our members among life insurance sales personnel / Value 60.7 %, Indicator Labor management cloud market share / Value No. 1 for 6 consecutive years |
| New initiatives | Provision of SRAISE, a generative AI tool specializing in social insurance and labor consultant services, Provision of F&M OneGeNNect through a community focused on the use of generative AI for accounting firms, Expansion of services into human resources management and development, including talent management and performance evaluations |
Items this document does not state (12)
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.Revenue increased as membership remained steady across all segments and the consulting business recognized ¥1,206 million in subsidy approval fees, among other factors. Expenses, including outsourcing fees, personnel expenses and commission fees, also increased with the rise in revenue.