Key Positives From The Results
Despite an irregular six-month fiscal period, Timee delivered revenue of JPY 21,006M (+27.6% YoY) and operating income of JPY 3,812M (+16.8% YoY), with revenue surpassing the upper bound of the revised guidance range. YoY growth in spot-work fees reaccelerated QoQ in Q2, with a clear recovery in growth momentum led by logistics and retail.
- Revenue came in JPY 93M above the guidance ceiling of JPY 20,913M. Spot-work revenue totaled JPY 20,192M (+23.1% YoY) and non-spot-work revenue reached JPY 882M (+1,526.6% YoY), with both streams performing well
- The logistics vertical showed a recovery trajectory, with GMV at +29.8% YoY and active accounts (AAs) at +26.5% YoY. Expanded Field Manager (FM) deployment and enriched solutions (e.g., Smart Group functionality) were key contributors
- Timee Career Plus revenue surged 3.5x YoY. Differentiation is clear, driven by development of a direct recruitment (DR) platform and features such as the Timee Resume enabling screening/interview-skip workflows
- Utilization rate held at a high 85.9% for the full period. Registered workers reached 14.2 million and registered client locations hit 465,000, placing the platform firmly in a network-effects expansion phase
- First-ever share buyback executed (~JPY 1.27B, ~1.007M shares), demonstrating a shareholder-return posture while maintaining a capital-allocation policy that prioritizes growth investment
Key Concerns From The Results
An impairment charge of JPY 354M on Korean investee Needer pushed net income to JPY 2,439M (▲4.9% YoY), falling below the lower end of the guidance range. OPM declined ▲1.6pt YoY, weighed down by front-loaded strategic investment costs.
- The restaurant/food-service vertical remained in negative territory, with spot-work fees at ▲1.5% YoY. GMV was also ▲0.8%, and while the pace of decline is moderating, the timing of a recovery remains unclear
- Non-spot-work businesses posted revenue of JPY 882M against an operating loss of ▲JPY 421M. Both Timee Solutions and Career Plus are in the red, and the path to profitability remains a key concern
- Worker marketing expenses rose +3.7pt YoY. Strategic investments in FM initiatives and the eldercare/welfare segment exceeded initial plans, but the efficiency of these investments warrants scrutiny
- The average take rate trended slightly lower, reflecting strategic discounting aimed at expanding GMV. The risk of margin dilution from sustained reliance on discounting bears monitoring
- The JPY 354M write-down on investment securities (Needer impairment) calls into question the overseas investment/equity-stake strategy and highlights rising uncertainty around recouping the investment
Focus Areas / Items To Monitor Going Forward
- Whether spot-work fee YoY growth can sustain the base-case scenario for FY27/4. The plan specifically assumes acceleration in H2 (expanding YoY incremental gains), making progress at Q1 results critical to monitor
- Progress on utilization improvement in the eldercare/welfare vertical. AAs are growing rapidly at +104.5% YoY, yet GMV per AA declined ▲9.4% YoY. The key question is when the Benesse Careiors strategic partnership will begin to show up in the numbers
- P&L impact and segment profitability dynamics following the absorption-type split of the FM business into Timee Solutions (Sukima Works), scheduled for August 1, 2026. The non-spot-work segment is projected to widen its losses to ▲JPY 1,803M for the full year, and greater clarity on the breakeven timeline is needed
- Rationale and specific initiatives underpinning the assumption that YoY growth in the restaurant/food-service vertical will turn positive by Q4 FY27/4
- Quantitative utilization-rate improvement targets for the eldercare/welfare vertical specifically (vs. the company-wide 85.9%)
- Timeline for the DR platform launch and initial-year KPI targets
- Monetization model for the long-term part-time hiring support plan following its official launch this summer, and its spillover effect on spot-work fees
- Gross margin profile and breakeven outlook for Timee Solutions' contracting business
- Revised overseas investment/equity-stake strategy in light of the Needer impairment
- Business model for Timee Financial (planned establishment July 2026), and a concrete timeline for the partnerships with NTT Docomo and SBI Sumishin Net Bank
- Forward policy on share buybacks (plans for share cancellation and additional repurchases)
- Quantitative productivity gains from AI applications (AI-powered outbound calls, job listing auto-generation, etc.)
- Medium-term implications for the take rate from intensifying competition (increasing new entrants)
Key Financial Highlights
(Note: FY2026/4 is an irregular six-month fiscal period (November 2025 – April 2026) due to a fiscal year-end change. The prior consolidated fiscal year (FY2025/10) was a 12-month period, so simple comparison is not possible. YoY figures are compared against the corresponding six-month period of the prior year.)
| Item | Value | YoY |
|---|---|---|
| Revenue | JPY 21,006M | +27.6% |
| Cost of Goods Sold | JPY 1,733M | - |
| Gross Profit | JPY 19,272M | - |
| Gross Profit Margin | 91.7% | - |
| SG&A | JPY 15,460M | - |
| Operating Income | JPY 3,812M | +16.8% |
| Operating Income Margin | 18.1% | ▲1.6pt |
| Recurring Profit | JPY 3,760M | +16.7% |
| Recurring Profit Margin | 17.9% | ▲1.6pt |
| Net Income Attributable to Owners of Parent Company | JPY 2,439M | ▲4.9% |
| Net Income Margin | 11.6% | ▲3.9pt |
| EPS | JPY 24.25 | - |
| Diluted EPS | JPY 22.93 | - |
| Book Value per Share | JPY 159.77 | - |
| GMV | JPY 69,475M | - |
| Registered Workers | 14.2M+ | - |
| Registered Client Locations | 465,000+ | - |
| Utilization Rate | 85.9% | - |
(Note: A JPY 354M write-down on investment securities (impairment of Korean investee Needer) was booked as an extraordinary loss, depressing net income.)
Performance By Business Segment
- Logistics: Q2 spot-work fees +28.7% YoY; GMV +29.8% YoY. Deeper penetration of large accounts and FM deployment expansion drove growth, with GMV per AA flipping back to positive YoY
- Retail: Q2 spot-work fees +23.7% YoY; GMV +27.1% YoY. Business Process Reengineering (BPR) drove everyday-use adoption, and spot work is increasingly being strategically embedded into company-wide initiatives such as major sales events. The drugstore sub-vertical is in an expansion phase
- Eldercare/Welfare: Q2 spot-work fees +84.7% YoY; AAs +104.5% YoY. Strategic marketing investment and the Benesse Careiors partnership are expanding the base
- Timee Career Plus: Revenue at 3.5x YoY. Placement efficiency improved through use of the Timee Resume, enabling screening and interview-skip workflows
- Restaurant/Food Service: Q2 spot-work fees ▲1.5% YoY (narrowing from ▲4.8% in the prior quarter). Cost-inflation pressures continue to constrain spot-work budgets. GMV per AA also declined ▲3.8% YoY
- Timee Solutions (Segment Profitability): Revenue of JPY 638M against an operating loss of ▲JPY 107M. The contracting business is still scaling its sales channels, and goodwill amortization is an additional drag on profitability
Progress Versus Full-Year Guidance
This fiscal period was an irregular six-month term due to the fiscal year-end change; results are assessed against the revised guidance (range format). Revenue exceeded the upper bound (JPY 20,913M) by JPY 93M, achieving 100.4%–102.5% of the guidance range. Operating income landed within the range (92.2%–101.8%), while net income fell below the lower bound owing to the Needer impairment.
| Item | Actual (Full Period) | Revised Guidance (Lower – Upper) | Achievement |
|---|---|---|---|
| Revenue | JPY 21,006M | JPY 20,503M – JPY 20,913M | 100.4%–102.5% |
| Operating Income | JPY 3,812M | JPY 3,746M – JPY 4,137M | 92.2%–101.8% |
| Recurring Profit | JPY 3,760M | JPY 3,706M – JPY 4,097M | 91.8%–101.5% |
| Net Income | JPY 2,439M | JPY 2,754M – JPY 3,021M | 80.7%–88.6% |
- Q1 (Nov–Jan) tends to be the peak for revenue and GMV, driven by year-end/New Year logistics demand. Q2 (Feb–Apr) is seasonally soft, with GMV and AAs declining QoQ
Next-Year Guidance
FY27/4 (May 2026 – April 2027, 12-month period) guidance is provided in range format. Compared with the annualized run-rate of the prior six-month results, the company projects revenue growth of +22.6% to +25.7% and operating income growth of +20.9% to +33.6%. The plan front-loads logistics FM initiatives and eldercare/welfare worker marketing spend into H1, with growth acceleration and margin improvement targeted for H2.
- Revenue: JPY 47,613M – JPY 48,823M (midpoint JPY 48,218M)
- Operating Income: JPY 8,821M – JPY 9,746M (midpoint JPY 9,283M)
- Recurring Profit: JPY 8,806M – JPY 9,731M (midpoint JPY 9,268M)
- Net Income: JPY 6,002M – JPY 6,927M (midpoint JPY 6,464M)
- EPS: JPY 59.69 – JPY 68.89 (midpoint JPY 64.29)
(Note: YoY growth rates are not disclosed due to the irregular six-month prior period. Against a trailing 12-month proxy (May 2025 – April 2026) of JPY 38,835M in revenue and JPY 7,295M in operating income, the guidance midpoints imply +24.2% revenue growth and +27.2% operating income growth.)
Commentary On Shareholder Returns
No dividend was paid for FY2026/4 (unchanged from the prior period). No dividend is projected for FY2027/4 either. However, the Board of Directors resolved a share buyback on March 25, 2026, authorizing up to 1,007,280 shares / JPY 1.46B. By May 31, 2026, the company had completed the repurchase of 1,007,200 shares for approximately JPY 1.28B. Management's stated capital allocation policy prioritizes growth investment (M&A, etc.) and channels undeployed cash into opportunistic buybacks.
Financial Position
The balance sheet structure reflects parallel expansion of advances (worker wage prepayments) and short-term borrowings in line with business growth. The equity ratio dipped modestly to 42.4% from 43.2% in the prior period, though cash on hand of JPY 16.5B underpins a stable financial foundation.
- Key Figures
- Leverage Metrics
| Item | Value | Additional Information |
|---|---|---|
| Cash and Deposits | JPY 16,540M | +16.3% vs. prior period |
| Accounts Receivable | JPY 4,203M | +8.9% vs. prior period |
| Advances | JPY 12,612M | +6.5% vs. prior period; worker wage prepayments |
| Total Current Assets | JPY 34,552M | +13.2% vs. prior period |
| Total Non-Current Assets | JPY 3,101M | +0.7% vs. prior period |
| Total Assets | JPY 37,653M | +12.0% vs. prior period |
| Interest-Bearing Debt | JPY 14,225M | Short-term 13,500 + Current portion of LT debt 139 + Long-term 585 |
| └ Short-Term Borrowings | JPY 13,500M | +JPY 2,390M vs. prior period (advance financing) |
| └ Long-Term Borrowings (incl. current portion) | JPY 725M | ▲JPY 83M vs. prior period |
| Shareholders' Equity | JPY 15,964M | +10.0% vs. prior period |
| Treasury Stock | ▲JPY 1,051M | Newly acquired |
| EBITDA | JPY 3,990M | Operating income 3,812 + D&A 152 + goodwill amortization 24 (our estimate) |
News Released Alongside The Earnings Announcement
- 2026/06/11Plans to establish a wholly owned subsidiary "Timee Financial" in July 2026 to commercialize financial solutions. This is linked to financial-domain business partnerships with NTT Docomo and SBI Sumishin Net Bank (per the earnings release, material subsequent events)
- 2026/06/11Absorption-type split to transfer the Field Manager business and Logi Hero sales operations to Sukima Works (Timee Solutions), effective August 1, 2026. The move is aimed at streamlining service delivery by leveraging synergies with the contracting business (per the earnings release, material subsequent events)
- 2026/06/09Fidelity Management & Research Company LLC filed an initial large-shareholding report disclosing a 5.74% stake in Timee Fidelity Management & Research Company LLC reports holding exceeding 5% in Timee
Major Announcements During The Quarter
- 2026/04/20Signed a memorandum of understanding for a strategic business alliance with Benesse Careiors aimed at resolving the eldercare labor shortage. The partnership targets accelerated adoption in the eldercare sector across three pillars: Timee onboarding support, e-learning provision, and staffing referral services Timee and Benesse Careiors reach basic agreement on strategic business alliance to address the deepening eldercare labor shortage
- 2026/04/10Signed a business alliance agreement with JA Mitsui Leasing. The partnership promotes Timee adoption across JA facilities and agricultural operators nationwide, accelerating market development in the primary industry sector Timee signs business alliance agreement with JA Mitsui Leasing
- 2026/03/31Signed a business alliance agreement with Jomo Shimbun to address regional employment challenges in Gunma Prefecture, expanding sales channels to local enterprises Timee signs business alliance agreement with Jomo Shimbun to address employment challenges in Gunma Prefecture
- 2026/03/25Resolved to acquire treasury shares (up to 1,007,280 shares / JPY 1.46B), targeting improved capital efficiency and EPS accretion (per the earnings release, material subsequent events)
Large-Shareholding Filings / Material Proposals Over The Past Year
- Fidelity Management & Research Company LLC: 0.00% → 5.74% (2026/06/09) – Held for group asset management/administration purposes
- FMR LLC: 5.64% → 3.05% (2026/03/23) – Held for fiduciary/asset management purposes. FMR LLC's stake has fluctuated frequently over the past year (peak 8.65% → most recent 3.05%)
- Recolle (asset management vehicle of Representative Director Rei Ogawa): 29.90% → 28.33% (2026/02/10) – Held as a stable shareholder; gradual dilution trend
- Morgan Stanley MUFG Securities: 6.16% → 2.36% (2025/10/21) – Held in connection with securities business operations; position reduction
- Rheos Capital Works: 5.02% → 3.03% (2025/10/22) – Pure investment under discretionary/investment trust mandates; position reduction
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