Worth reading
67In 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
-57
¥ million (year-on-year change in revenue)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationSecond quarter of the fiscal year ending December 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,671 million-3.3%
Operating profit¥75 million-33.6%
Ordinary income¥71 million-32.0%
Net income¥42 million-38.8%
Selling, general and administrative expenses¥1,171 million; SG&A-to-revenue ratio of 70.1%
Gross Profit Margin74.6% (gross profit of ¥1,246 million ÷ revenue of ¥1,671 million; no year-on-year change was disclosed)
Operating profit margin4.5% (down 2.1 percentage points year on year)
Results for the three months of the current quarterRevenue of ¥856 million and an operating loss of ¥8 million. Other standalone income statement items for the three-month period were Not disclosed.
Full-year earnings forecastRevenue of ¥3,688 million, operating profit of ¥298 million and annual dividend per share of ¥15
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。Revenue for the cumulative 2Q period was ¥1,671 million, ¥91 million below the full-year forecast (-5.2%). Cumulative 2Q operating profit was ¥75 million, ¥6 million above the forecast (+9.4%). The cumulative progress rate against the full-year forecast itself was Not disclosed.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue was slightly below plan, while operating profit exceeded plan.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year-on-year change in operating profit: revenue decline, -¥57 million; increase in cost of sales, -¥14 million; decrease in SG&A, +¥33 million. Change in operating profit versus forecast: revenue decline, -¥91 million; decrease in cost of sales, +¥25 million; decrease in SG&A, +¥72 million. The breakdown of the SG&A decrease was recruiting expenses, -¥51 million; fees paid, +¥16 million; and personnel expenses, +¥11 million, on a year-on-year basis; and personnel and recruiting expenses, -¥41 million; rent, -¥9 million; and advertising expenses, -¥8 million, versus forecast.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The materials state that the yen remained stronger than the budget exchange-rate assumption, but specific exchange rates and other figures were Not disclosed.New initiatives
Making ヒップスターゲート a subsidiary; executive plans for senior management and directors; the overseas practical training program BizmatesX; and the acquisition of peripheral businesses and development of new businesses through M&A.Key KPIsA metric the company considers important as a management benchmark.
More than 1,600 corporate customers; top-level meetings for 7 M&A deals; 3 LOIs presented; due diligence completed or in progress for 2 deals; and 1 deal completed.Unit price and quantity metricsThese figures show sales broken down by price and volume.
Monthly online English conversation fee of ¥14,850, equivalent to ¥479 per lesson with daily attendance, for 25 minutes per day. Actual KPIs breaking down performance into volume and pricing were Not disclosed.Segment results
LS business revenue was ¥1,592 million (-3.6% year on year and -2.7% versus forecast). By customer type, individual customers declined by ¥81 million year on year, while corporate customers increased by ¥22 million. TS business revenue was ¥78 million (+3.0% year on year and -37.4% versus forecast). Segment profit was Not disclosed.Medium-term management plan targets
2030 targets: revenue of ¥10 billion and adjusted operating profit of ¥1.5 billion. FY2025 December results were revenue of ¥3.49 billion and operating profit of ¥280 million.Financial targets
The 2030 targets are revenue of ¥10 billion and adjusted operating profit of ¥1.5 billion. Targets and actual figures for ROE, ROIC, the D/E ratio and the equity ratio were Not disclosed.Market Size / Share
The overall language-learning market was ¥793.3 billion in 2025 and is forecast at ¥791.7 billion in 2026. The online language-learning market was ¥44.5 billion in 2025 and is forecast at ¥50.0 billion in 2026. The market for recruitment and job-information services for digital and global talent is approximately ¥118 billion, with a SAM of approximately ¥236 billion and a TAM of approximately ¥1.13 trillion. The high-end estimate for Japan's IT talent shortage in 2030 is 787,000 people. Market share was Not disclosed.Number of employees
194 consolidated employees as of 30 June 2026. Bizmates Philippines: 86 employees; ヒップスターゲート: 7 employees. Changes during the period and the hiring plan were Not disclosed.Annual Dividend
Annual dividend of ¥15 per share (one year-end dividend; no interim dividend)Payout ratio
23.7% forecast for FY2026 December. The Company targets a payout ratio of 20–30%. Total payout ratio and DOE were Not disclosed.| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | Second quarter of the fiscal year ending December 2026 |
| Net Sales | ¥1,671 million (YoY -3.3%) |
| Operating profit | ¥75 million (YoY -33.6%) |
| Ordinary income | ¥71 million (YoY -32.0%) |
| Net income | ¥42 million (YoY -38.8%) |
| Gross Profit Margin | 74.6% (gross profit of ¥1,246 million ÷ revenue of ¥1,671 million; no year-on-year change was disclosed) |
| Operating profit margin | 4.5% (down 2.1 percentage points year on year) |
| Selling, general and administrative expenses | ¥1,171 million; SG&A-to-revenue ratio of 70.1% |
| Results for the three months of the current quarter | Revenue of ¥856 million and an operating loss of ¥8 million. Other standalone income statement items for the three-month period were Not disclosed. |
| Full-year earnings forecast | Revenue of ¥3,688 million, operating profit of ¥298 million and annual dividend per share of ¥15 |
| Progress against full-year forecast | Revenue for the cumulative 2Q period was ¥1,671 million, ¥91 million below the full-year forecast (-5.2%). Cumulative 2Q operating profit was ¥75 million, ¥6 million above the forecast (+9.4%). The cumulative progress rate against the full-year forecast itself was Not disclosed. |
| Self-assessment against the plan | Revenue was slightly below plan, while operating profit exceeded plan. |
| Segment results | LS business revenue was ¥1,592 million (-3.6% year on year and -2.7% versus forecast). By customer type, individual customers declined by ¥81 million year on year, while corporate customers increased by ¥22 million. TS business revenue was ¥78 million (+3.0% year on year and -37.4% versus forecast). Segment profit was Not disclosed. |
| Breakdown of Factors Affecting the Change | Year-on-year change in operating profit: revenue decline, -¥57 million; increase in cost of sales, -¥14 million; decrease in SG&A, +¥33 million. Change in operating profit versus forecast: revenue decline, -¥91 million; decrease in cost of sales, +¥25 million; decrease in SG&A, +¥72 million. The breakdown of the SG&A decrease was recruiting expenses, -¥51 million; fees paid, +¥16 million; and personnel expenses, +¥11 million, on a year-on-year basis; and personnel and recruiting expenses, -¥41 million; rent, -¥9 million; and advertising expenses, -¥8 million, versus forecast. |
| Key KPIs | More than 1,600 corporate customers; top-level meetings for 7 M&A deals; 3 LOIs presented; due diligence completed or in progress for 2 deals; and 1 deal completed. |
| Unit price and quantity metrics | Monthly online English conversation fee of ¥14,850, equivalent to ¥479 per lesson with daily attendance, for 25 minutes per day. Actual KPIs breaking down performance into volume and pricing were Not disclosed. |
| Number of employees | 194 consolidated employees as of 30 June 2026. Bizmates Philippines: 86 employees; ヒップスターゲート: 7 employees. Changes during the period and the hiring plan were Not disclosed. |
| Assumptions Underlying the Business Outlook | The materials state that the yen remained stronger than the budget exchange-rate assumption, but specific exchange rates and other figures were Not disclosed. |
| Medium-term management plan targets | 2030 targets: revenue of ¥10 billion and adjusted operating profit of ¥1.5 billion. FY2025 December results were revenue of ¥3.49 billion and operating profit of ¥280 million. |
| Financial targets | The 2030 targets are revenue of ¥10 billion and adjusted operating profit of ¥1.5 billion. Targets and actual figures for ROE, ROIC, the D/E ratio and the equity ratio were Not disclosed. |
| Annual Dividend | Annual dividend of ¥15 per share (one year-end dividend; no interim dividend) |
| Payout ratio | 23.7% forecast for FY2026 December. The Company targets a payout ratio of 20–30%. Total payout ratio and DOE were Not disclosed. |
| Market Size / Share | The overall language-learning market was ¥793.3 billion in 2025 and is forecast at ¥791.7 billion in 2026. The online language-learning market was ¥44.5 billion in 2025 and is forecast at ¥50.0 billion in 2026. The market for recruitment and job-information services for digital and global talent is approximately ¥118 billion, with a SAM of approximately ¥236 billion and a TAM of approximately ¥1.13 trillion. The high-end estimate for Japan's IT talent shortage in 2030 is 787,000 people. Market share was Not disclosed. |
| New initiatives | Making ヒップスターゲート a subsidiary; executive plans for senior management and directors; the overseas practical training program BizmatesX; and the acquisition of peripheral businesses and development of new businesses through M&A. |
Items this document does not state (6)
Number of stores and locationsRisk amount incorporated into the outlookAcquisition of treasury sharesCapital 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.Revenue declined mainly because the number of individual LS business students at the start of the period was below the prior-year level. Operating profit was weighed down by higher trainer costs resulting from an increase in the number of lessons, the weaker yen, app depreciation and one-off M&A-related expenses, but benefited from cost controls, including the use of AI and optimization of personnel allocation.
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