Worth reading
59In 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
10
Year-on-year decrease in revenue (%)Wording
Conditional
How definitive the wording is.Contents of this document
Financial Results PresentationFiscal year ending March 2026, full year14 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales59,093 Millions of yen-10.0%
Operating profit3,962 Millions of yen-32.7%
Ordinary income4,191 Millions of yen-29.5%
Net income2,616 Millions of yen-65.7%
Selling, general and administrative expenses45,652 Millions of yen
Results for the three months of the current quarterFourth-quarter cost of sales decreased 30.2% year on year, while fourth-quarter SG&A expenses increased 3.6%. Fourth-quarter revenue and operating profit are presented by segment.
Full-year earnings forecast
Net Sales
50,000 Millions of yen
Operating profit
2,800 Millions of yen
Ordinary income
3,406 Millions of yen
Net income for the current fiscal year
5,464 Millions of yen
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Cost of sales: total of ¥9,478 million, down ¥3,762 million year on year. Personnel expenses were ¥3,635 million, outsourcing expenses were ¥1,966 million, and other costs were ¥3,876 million. SG&A expenses: total of ¥45,652 million, down ¥892 million year on year. Personnel expenses were ¥18,218 million, advertising and sales promotion expenses were ¥14,844 million, and other expenses were ¥12,589 million.
New initiatives
Transfer the engage business to Kakaku.com, Inc.; resume investment in en Japan; strengthen the recruitment business; acquire back check and integrate it with ASHIATO; establish en PeopleX; expand sales of AI interviews, AI meetings and AI role-play products; and jointly develop new products using HR × AI.Key KPIsA metric the company considers important as a management benchmark.
Number of companies using en Japan: 5,546, up 1.3% year on year; registered job-seeker members: 12.69 million, up 5.1%. Number of companies using Middle Career and AMBI: 10,762, down 6.6%; registered job-seeker members: 4.80 million, up 9.8%. Number of companies using engage: 16,838, down 34.7%; registered job-seeker members: 6.29 million, up 13.3%. Domestic share of the Vietnamese job site market: 51%. Independent outside directors as a percentage of the board: 42.9%; female directors: 14.3%; outside directors: 57.1%.Unit price and quantity metricsThese figures show sales broken down by price and volume.
Transaction value per customer was increased through Zekuu. Registered job-seeker members of Middle Career and AMBI: 4.80 million. Explicit breakdown metrics such as customer count, sales volume and ARPU: not disclosed.Segment results
en Japan: revenue of ¥15.30 billion and operating profit of ¥2.58 billion, with revenue down 12.0% year on year and operating profit down 47.8%. engage: revenue of ¥7.05 billion and an operating loss of ¥150 million. Other recruitment services: revenue of ¥2.53 billion and operating profit of ¥790 million, with revenue up 41.1% year on year and operating profit up 66.7%. Agent: revenue of ¥10.85 billion and operating profit of ¥1.62 billion, with revenue up 9.4% year on year and operating profit up 23.4%. Education and assessment services: revenue of ¥1.75 billion and operating profit of ¥450 million, with revenue up 3.8% year on year and operating profit down 11.9%. Overseas media and Agent: revenue of ¥2.72 billion and operating profit of ¥490 million, with revenue up 5.0% year on year and operating profit up 63.1%. Overseas IT engineer staffing: revenue of ¥3.74 billion and operating profit of ¥760 million, with revenue up 9.5% year on year and operating profit up 131.9%. Domestic sales outsourcing services: revenue of ¥1.78 billion and operating profit of ¥220 million, with revenue down 10.0% year on year and operating profit up 24.5%.Medium-term management plan targets
Establish the business portfolio by March 2028 and establish a competitive advantage in the AI × HR field. Specific financial targets: not disclosed.Financial targets
Maintain average ROE of approximately 14% over the latest 3 fiscal years. Planned ROE for the fiscal year ending March 2027: 16%; previous fiscal year actual: 7.7%. Cost of shareholders’ equity: approximately 9–10%.Market Size / Share
Japan’s reference-check market: ¥12–16 billion. Domestic share of the Vietnamese job site market: 51%.Orders received and order backlog
The company referred to an increase in orders for large-scale projects. Amount: not disclosed.Number of employees
Standalone employees: 2,014 (March 2026), down from 2,497 in April 2025. The plan for March 2027 is 1,757 employees. A reduction of 235 employees is expected as a result of the transfer of the engage business.Capital expenditures
¥40 100 million IT investment
Annual Dividend
Dividend per share for the fiscal year ending March 2027: ¥68.3. Breakdown between the interim and year-end dividends: not disclosed.Payout ratio
50% for the fiscal year ending March 2027.Acquisition of treasury shares
The company stated that it conducted a share buyback in the previous fiscal year. The amount, number of shares and period of the buyback authorization: not disclosed.| Item | Details |
|---|---|
| Document type | Financial Results Presentation |
| Fiscal Period Covered | Fiscal year ending March 2026, full year |
| Net Sales | 59,093 Millions of yen (YoY -10.0%) |
| Operating profit | 3,962 Millions of yen (YoY -32.7%) |
| Ordinary income | 4,191 Millions of yen (YoY -29.5%) |
| Net income | 2,616 Millions of yen (YoY -65.7%) |
| Selling, general and administrative expenses | 45,652 Millions of yen |
| Results for the three months of the current quarter | Fourth-quarter cost of sales decreased 30.2% year on year, while fourth-quarter SG&A expenses increased 3.6%. Fourth-quarter revenue and operating profit are presented by segment. |
| Full-year earnings forecast | Net Sales 50,000 Millions of yen / Operating profit 2,800 Millions of yen / Ordinary income 3,406 Millions of yen / Net income for the current fiscal year 5,464 Millions of yen |
| Segment results | en Japan: revenue of ¥15.30 billion and operating profit of ¥2.58 billion, with revenue down 12.0% year on year and operating profit down 47.8%. engage: revenue of ¥7.05 billion and an operating loss of ¥150 million. Other recruitment services: revenue of ¥2.53 billion and operating profit of ¥790 million, with revenue up 41.1% year on year and operating profit up 66.7%. Agent: revenue of ¥10.85 billion and operating profit of ¥1.62 billion, with revenue up 9.4% year on year and operating profit up 23.4%. Education and assessment services: revenue of ¥1.75 billion and operating profit of ¥450 million, with revenue up 3.8% year on year and operating profit down 11.9%. Overseas media and Agent: revenue of ¥2.72 billion and operating profit of ¥490 million, with revenue up 5.0% year on year and operating profit up 63.1%. Overseas IT engineer staffing: revenue of ¥3.74 billion and operating profit of ¥760 million, with revenue up 9.5% year on year and operating profit up 131.9%. Domestic sales outsourcing services: revenue of ¥1.78 billion and operating profit of ¥220 million, with revenue down 10.0% year on year and operating profit up 24.5%. |
| Breakdown of Factors Affecting the Change | Cost of sales: total of ¥9,478 million, down ¥3,762 million year on year. Personnel expenses were ¥3,635 million, outsourcing expenses were ¥1,966 million, and other costs were ¥3,876 million. SG&A expenses: total of ¥45,652 million, down ¥892 million year on year. Personnel expenses were ¥18,218 million, advertising and sales promotion expenses were ¥14,844 million, and other expenses were ¥12,589 million. |
| Key KPIs | Number of companies using en Japan: 5,546, up 1.3% year on year; registered job-seeker members: 12.69 million, up 5.1%. Number of companies using Middle Career and AMBI: 10,762, down 6.6%; registered job-seeker members: 4.80 million, up 9.8%. Number of companies using engage: 16,838, down 34.7%; registered job-seeker members: 6.29 million, up 13.3%. Domestic share of the Vietnamese job site market: 51%. Independent outside directors as a percentage of the board: 42.9%; female directors: 14.3%; outside directors: 57.1%. |
| Unit price and quantity metrics | Transaction value per customer was increased through Zekuu. Registered job-seeker members of Middle Career and AMBI: 4.80 million. Explicit breakdown metrics such as customer count, sales volume and ARPU: not disclosed. |
| Number of employees | Standalone employees: 2,014 (March 2026), down from 2,497 in April 2025. The plan for March 2027 is 1,757 employees. A reduction of 235 employees is expected as a result of the transfer of the engage business. |
| Medium-term management plan targets | Establish the business portfolio by March 2028 and establish a competitive advantage in the AI × HR field. Specific financial targets: not disclosed. |
| Financial targets | Maintain average ROE of approximately 14% over the latest 3 fiscal years. Planned ROE for the fiscal year ending March 2027: 16%; previous fiscal year actual: 7.7%. Cost of shareholders’ equity: approximately 9–10%. |
| Annual Dividend | Dividend per share for the fiscal year ending March 2027: ¥68.3. Breakdown between the interim and year-end dividends: not disclosed. |
| Payout ratio | 50% for the fiscal year ending March 2027. |
| Acquisition of treasury shares | The company stated that it conducted a share buyback in the previous fiscal year. The amount, number of shares and period of the buyback authorization: not disclosed. |
| Capital expenditures | ¥40 100 million (IT investment) |
| Orders received and order backlog | The company referred to an increase in orders for large-scale projects. Amount: not disclosed. |
| Market Size / Share | Japan’s reference-check market: ¥12–16 billion. Domestic share of the Vietnamese job site market: 51%. |
| New initiatives | Transfer the engage business to Kakaku.com, Inc.; resume investment in en Japan; strengthen the recruitment business; acquire back check and integrate it with ASHIATO; establish en PeopleX; expand sales of AI interviews, AI meetings and AI role-play products; and jointly develop new products using HR × AI. |
Items this document does not state (8)
Gross Profit MarginOperating profit marginProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookKey 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.For the fiscal year ended March 2026, lower revenue from the Media business led to a decline in operating profit. Net income decreased because the ¥5.43 billion gain on the sale of shares in Timee, Inc. recognized in the previous fiscal year did not recur, and there were no significant extraordinary gains or losses. For the fiscal year ending March 2027, revenue is expected to decline as a result of the transfer of the engage business, while the company plans to reduce costs and increase investment in improving existing businesses and pursuing its growth strategy.
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