Key Positives From The Results
Revenue came in at JPY 10.85B (+25.6% YoY) with operating income of JPY 2.1B (+49.2% YoY), delivering top- and bottom-line growth. OPM improved +3.0pt YoY to 19.4%, demonstrating the company can sustain both growth and profitability. An upward revision to full-year guidance (revenue JPY 20.5B–20.91B, operating income JPY 3.74B–4.13B) was announced concurrently, signaling management confidence.
- GMV of JPY 36,172M (+21.0% YoY), active accounts (AA) +16.3%, utilization rate 84.9% (+0.3pt YoY) — platform KPIs improved across the board
- Full-year operating income achievement rate of 57.2%–67.4% (vs. pre-revision guidance), running well ahead of plan; cost efficiencies in existing operations drove margin expansion
- Spot work segment operating income of JPY 2,373M (+62.2% YoY), delivering strong profit growth; logistics take rate also improved +0.5pt YoY
- Timee Career Plus revenue of JPY 72M (3.6x YoY); Sukimaworks revenue of JPY 316M — new businesses ramping up smoothly
- Nursing care/welfare industry AA +147.6% YoY, GMV +115.7% YoY — strategic focus area entering a phase of rapid expansion
Key Concerns From The Results
Restaurant/food service industry revenue declined -4.8% YoY, with negative growth persisting. Non-spot-work businesses posted an operating loss of JPY -252M, indicating the investment payback phase remains distant. Gross Profit Margin fell to 92.1% (-2.9pt YoY), dragged down by the consolidation of Sukimaworks.
- Restaurant/food service GMV -3.5% YoY, GMV per AA -3.6% YoY — signs of recovery are limited to individual accounts, with no clear inflection at the industry level
- Non-spot-work businesses posted an operating loss of JPY -252M
- Gross margin of 92.1% (-2.9pt YoY) is a structural impact from Sukimaworks consolidation; mix deterioration may continue going forward
- Management plans to redeploy the profit surplus generated in Q1 into incremental investments in Q2, with full-year OPM expected to land roughly flat YoY
- Short-term borrowings of JPY 15.0B (+JPY 3.89B vs. prior fiscal year-end), driven by expansion of advance payments to workers; rising interest expense burden in a higher-rate environment warrants attention
Focus Areas / Items To Monitor Going Forward
- With the restaurant/food service industry's negative growth becoming prolonged, the official launch timing and pricing model for the long-term hiring support service are directly linked to re-accelerating growth in restaurant and retail; specific progress disclosure in Q2 is a key watchpoint
- Nursing care/welfare industry: sales headcount has been doubled and worker marketing investments are underway, but the company is still in an exploratory phase toward improving utilization rates
- Specific allocation targets and scale of incremental strategic investment in Q2; the growth trajectory from H2 onward will depend on how and where the Q1 profit surplus is deployed
- Outlook for the trough in restaurant/food service industry negative growth
- Pricing model and official launch timeline for the long-term hiring support service
- Target utilization rate level for the nursing care/welfare industry
- Specific amount range and allocation targets for incremental strategic investments in Q2
- Medium-term Gross Profit Margin landing level given the consolidation impact of Sukimaworks
- Development progress and release timing for Timee Career Plus's direct recruiting platform
- M&A pipeline: indicative deal size and priority of target sectors
- Quantitative assessment of how competitor dynamics in the spot work market are impacting the company's KPIs
- Key assumptions behind FY26–FY30 cumulative operating cash flow of JPY 30B+ and specific triggers for initiating shareholder returns
- Concrete roadmap for on-site data accumulation strategy in anticipation of the physical AI era
Key Financial Highlights
| Item | Value | YoY |
|---|---|---|
| Revenue | JPY 10,856M | +25.6% |
| └ Spot Work Fees | JPY 10,401M | +20.7% |
| Cost of Goods Sold | JPY 853M | - |
| Gross Profit | JPY 10,002M | +21.8% |
| Gross Profit Margin | 92.1% | -2.9pt |
| SG&A | JPY 7,894M | - |
| Operating Income | JPY 2,108M | +49.2% |
| Operating Income Margin | 19.4% | +3.0pt |
| Recurring Profit | JPY 2,082M | - |
| Net Income Attributable to Owners of Parent Company (Quarterly) | JPY 1,439M | +10.0% |
| Net Income Margin | 13.3% | -1.8pt |
| EPS | JPY 14.29 | - |
| Diluted EPS | JPY 13.49 | - |
| GMV | JPY 36,172M | +21.0% |
| Average Take Rate | 28.8% | - |
| Utilization Rate | 84.9% | +0.3pt |
| Registered Workers | 13.47M | +29.0% |
| Registered Client Locations | 440K locations | +28.0% |
| Active Accounts (Quarterly) | 241K locations | +16.3% |
YoY percentages are based on the earnings presentation materials. Due to the fiscal year-end change (October → April), the quarterly securities report does not include prior-year quarterly comparisons. The -1.8pt decline in net income margin reflects normalization from an elevated base in Q1 of the prior period due to one-time items (tax effects, etc.).
Performance By Business Segment
| Segment | Revenue | YoY | Operating Income | YoY | Margin |
|---|---|---|---|---|---|
| Timee Segment | JPY 10,539M | - | JPY 2,165M | - | 20.5% |
| Other (Sukimaworks) | JPY 316M | - | JPY -57M | - | - |
| Consolidation Adjustments | JPY 0M | - | - | - | - |
| Consolidated Total | JPY 10,856M | +25.6% | JPY 2,108M | +49.2% | 19.4% |
- Logistics Industry: Spot work fees +25.1% YoY, GMV +22.9% YoY. The workload reduction project moved into full-scale implementation, successfully navigating the first peak season. Growth rates for targeted large-scale clients accelerated QoQ, while mid- and small-scale clients also turned around QoQ
- Retail Industry: Spot work fees +22.8% YoY, GMV +26.4% YoY. Certain major retail groups that had been curbing costs since Q3 of the prior period are gradually recovering. GMV per AA rose +8.5% YoY, with drugstores entering an expansion phase
- Nursing Care/Welfare Industry: Spot work fees +114.6% YoY, AA +147.6% YoY. Strategic investments in marketing and sales headcount executed as planned, with BPR and enhanced sales follow-up frameworks now in place
- Timee Career Plus: Revenue of JPY 72M (3.6x YoY). Career advisor headcount increased, confirming ROI on worker marketing investments
- Sukimaworks: Revenue of JPY 316M (61.3% full-year progress). Contracted project volume expanding steadily, now covering hard-to-staff shifts such as nighttime operations
- Restaurant/Food Service Industry: Spot work fees -4.8% YoY, GMV -3.5% YoY. Negative growth persists due to cost containment. AA was essentially flat at +0.1% YoY. While individual accounts show signs of improvement through solution proposals targeting management and headquarters, no meaningful recovery is evident at the industry level
Progress Versus Full-Year Guidance
Revenue progress toward full-year guidance stands at 54.3%–56.5% (upper to lower bound of range), while operating income progress is 57.2%–67.4% (vs. pre-revision guidance) — both tracking well. These exceed the prior-year Q1 progress rates (revenue 52.5%, operating income 43.3%). Based on strong Q1 results and the Q2 outlook, the company revised full-year guidance upward.
| Item | Value (Q1 Cumulative) | Full-Year Forecast (Revised) | Progress Rate |
|---|---|---|---|
| Revenue | JPY 10,856M | JPY 20,503M–20,913M | 51.9%–52.9% |
| Operating Income | JPY 2,108M | JPY 3,746M–4,137M | 50.9%–56.3% |
| Recurring Profit | JPY 2,082M | JPY 3,706M–4,097M | 50.8%–56.2% |
| Net Income Attributable to Owners of Parent Company | JPY 1,439M | JPY 2,754M–3,021M | 47.6%–52.3% |
Operating income progress exceeds 50% even against the revised full-year plan, tracking well. Management intends to allocate the Q1 profit surplus toward incremental strategic investments in Q2.
- Q1 (Nov–Jan) coincides with the peak season for clients, particularly in logistics, making it the highest-revenue quarter of the year. Q2 (Feb–Apr) is a relatively off-peak period
Changes To Guidance
- Revenue: Previous JPY 19,228M–19,975M → Revised JPY 20,503M–20,913M (+JPY 937M–1,274M)
- Operating Income: Previous JPY 3,128M–3,688M → Revised JPY 3,746M–4,137M (+JPY 448M–617M)
- Recurring Profit: Previous JPY 3,078M–3,638M → Revised JPY 3,706M–4,097M (+JPY 458M–627M)
- Net Income: Previous JPY 2,102M–2,662M → Revised JPY 2,754M–3,021M (+JPY 359M–651M)
- Rationale: Reflects strong Q1 results and the Q2 outlook. Revenue revised upward for both spot work and non-spot-work. On the profit side, as Q1 surplus will be redeployed into Q2 incremental investments, full-year OPM is expected to be roughly in line YoY
Commentary On Shareholder Returns
The FY2026 (April-end) dividend forecast remains unchanged at JPY 0.00 per share (full-year JPY 0.00). Under its capital allocation policy, the company prioritizes growth investments (M&A, etc.), and disclosed that it will consider share buybacks for shareholder returns on undeployed cash. Management projects cumulative operating cash flow of JPY 30B+ over FY26–FY30 and stated its intent to pursue M&A utilizing over JPY 20B in existing committed credit facilities.
Financial Position
The primary driver of balance sheet changes is the buildup of short-term borrowings to fund increased advance payments to workers as the business scales. The equity ratio declined modestly to 42.6% (vs. 43.2% at prior fiscal year-end), though net assets rose to JPY 16.02B (+JPY 1.48B) on the back of earnings accumulation. Structurally, working capital needs arising from the advance payment model are causing both assets and liabilities to expand in tandem.
- Key Figures
- Leverage Metrics
| Item | Value | Additional Information |
|---|---|---|
| Cash and Deposits | JPY 18,107M | +JPY 3,882M vs. prior fiscal year-end |
| Accounts Receivable | JPY 3,813M | -JPY 46M vs. prior fiscal year-end |
| Advance Payments | JPY 11,640M | -JPY 205M vs. prior fiscal year-end |
| Total Assets | JPY 37,559M | +JPY 3,950M vs. prior fiscal year-end |
| Total Current Assets | JPY 34,288M | +JPY 3,759M vs. prior fiscal year-end |
| Total Non-Current Assets | JPY 3,270M | +JPY 190M vs. prior fiscal year-end |
| Total Interest-Bearing Debt | JPY 15,771M | +JPY 3,850M vs. prior fiscal year-end |
| └ Short-Term Borrowings | JPY 15,000M | +JPY 3,890M vs. prior fiscal year-end |
| └ Long-Term Borrowings (incl. current portion) | JPY 771M | -JPY 40M vs. prior fiscal year-end |
| Shareholders' Equity | JPY 15,997M | +JPY 1,478M vs. prior fiscal year-end |
| EBITDA | JPY 2,192M | Operating income 2,108 + depreciation 71 + goodwill amortization 12 |
Advance payments (JPY 11.64B) are assets arising from the business model's same-day payment feature for workers. Short-term borrowings are primarily drawn to fund these advances, and thus differ in nature from interest-bearing debt representing substantive business risk.
News Released Alongside The Earnings Announcement
Major Announcements During The Quarter
- 2025/12/22Fiscal year-end changed from October to April. Transitional period covers November 2025–April 2026 as an irregular 6-month fiscal year Notice Regarding Change of Fiscal Year-End and Partial Amendment to Articles of Incorporation
- 2025/12/22Full-year consolidated guidance for FY2026 (April-end) revised in connection with the fiscal year-end change resulting in a 6-month accounting period. Revenue range of JPY 19.22B–19.97B and operating income of JPY 3.12B–3.68B announced Notice Regarding Revision of Full-Year Consolidated Earnings Guidance Due to Fiscal Year-End Change
- 2026/01/28Annual general meeting of shareholders formally approved the fiscal year-end change (from October 31 to April 30) Extraordinary Report
- 2026/01/29New management structure announced, including the appointment of two new outside directors, aimed at strengthening governance Notice Regarding New Management Structure
Large-Shareholding Filings / Material Proposals Over The Past Year
- FMR LLC (Fidelity group): 5.38% → 8.65% → 6.13% → 5.82% (most recent filing: 2025/10/07) — Held for discretionary asset management. Filed initial large shareholding report at 5.38% in May 2025, increased to 8.65% in July, then reduced to 6.13% → 5.82% from September onward
- Morgan Stanley (joint holding): New filing (2025/10/06) — Held in connection with securities business operations
- Goldman Sachs (joint holding): Amendment filings (2025/05/08, 2025/04/07) — Trading and securities borrowing as part of securities-related business activities
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