FY2026 plan: profit is ahead of revenue, making 4Q revenue build-out the focus

The company moved to consolidated accounting, including イングリッシュカンパニー, from the third quarter of the fiscal year ending August 2026. Accordingly, the 3Q cumulative figures cover the consolidated period from September 2025 through May 2026. Revenue was ¥5,141 million and operating profit was ¥1,053 million, against full-year forecasts of ¥7,600 million and ¥1,450 million, respectively. Consolidated figures for the year-earlier period were not disclosed, so progress must be assessed against the remaining amounts under the full-year plan rather than through a simple year-on-year comparison.

Revenue progress was approximately 67.6%, calculated as ¥5,141 million ÷ ¥7,600 million, while operating profit progress was approximately 72.6%, calculated as ¥1,053 million ÷ ¥1,450 million. Accordingly, the amounts required in 4Q to meet the full-year forecasts are ¥2,459 million in revenue and ¥397 million in operating profit. The required profit represents only 37.7% of 3Q cumulative operating profit, whereas 47.8% of full-year revenue must be generated in 4Q, making revenue delivery relatively more important than profit delivery.

Standalone 3Q revenue was ¥1,808 million and operating profit was ¥352 million. The required 4Q revenue of ¥2,459 million is ¥651 million, or approximately 36.0%, above standalone 3Q revenue, while the required operating profit of ¥397 million is ¥45 million higher than standalone 3Q operating profit. The company said that standalone 3Q profit was built up in line with plan and that cumulative 3Q operating profit was in line with its forecast. However, it remains unverified whether the same pace can simply be extended to 4Q revenue and how much the contribution from イングリッシュカンパニー, now included in the consolidated results, will offset any shortfall.

The full-year forecast was revised to incorporate consolidated results following the M&A, and the 3Q presentation showed revenue and operating profit progress at 72% and 74%, respectively. However, monthly revenue plans, service-level 4Q plans and post-consolidation budgets by company have not been disclosed. It will also be important at the next results announcement to determine which businesses, including the existing English coaching and subscription services and イングリッシュカンパニー, were expected to generate the remaining ¥2,459 million of revenue.

At the FY2026 full-year results, the first check will be whether revenue reached ¥7,600 million and operating profit reached ¥1,450 million. If the targets were missed, the focus will be on whether the company can separately disclose standalone 4Q revenue and operating profit, the contributions from the existing businesses and イングリッシュカンパニー, and the profit drag from advertising and other growth investments. Even if the targets were achieved, the company’s consolidation from 3Q means that apparent year-on-year growth rates must be separated from the underlying growth of the existing businesses and the contribution from the acquisition.