Link and Motivation Inc.
2170・Prime Market・Services
Business
Link and Motivation, Inc. is a human capital management support company that leverages its proprietary technology, "Motivation Engineering," which integrates academic knowledge from management science, psychology, and other fields, as its core foundation, operating three businesses: Organizational Development, Individual Development, and Matching. The Organizational Development Division provides the HR Tech cloud service "Motivation Cloud" along with organizational and HR consulting, the Individual Development Division offers educational services ranging from elementary school students to working adults, and the Matching Division operates the No. 1 private-sector ALT (Assistant Language Teacher) staffing business as well as a recruitment placement business utilizing "OpenWork." Revenue for FY2025 (ending December 2025) reached a record high of ¥41,522 million, and the company drives its business through a group structure comprising 22 subsidiaries and 1 equity-method affiliate. Its main customers include domestic listed companies, mid-sized enterprises, and local governments, providing services to a wide range of stakeholders.
Business Model
There are three pillars of revenue. (1) The Organization Development Division combines stock-type revenue centered on monthly subscription fees for "Motivation Cloud" (¥627,382 thousand as of end-December 2025) with consulting fees. (2) The Matching Division earns stable flow-type revenue from municipalities through ALT placement (revenue of ¥14,284 million) and performance-based recruitment placement revenue from "OpenWork Recruiting." (3) The Individual Development Division earns tuition revenue from cram schools and career schools. The structure incorporates "Motivation Engineering" across all businesses, providing integrated support from diagnosis to transformation to increase customer spending per head and retention rates.
Company Strengths
"Motivation Cloud Engagement" ranked No. 1 for nine consecutive years (FY2017-2025 forecast) in vendor sales and share in the employee engagement market, according to ITR Market View: Workplace Optimization Market 2025. Monthly membership fee revenue for December 2025 remained strong at ¥627,382 thousand (121.6% year-on-year), with the strength of its brand and customer base forming a competitive advantage.
In the business of dispatching ALTs (Assistant Language Teachers) and providing English instruction services to elementary, junior high, and high schools nationwide, the company has established the No. 1 share among private companies in a market with high barriers to entry, where trust and track record with clients are critical. Revenue for FY2025 (ending December 2025) grew steadily to ¥14,284 million (111.0% year-on-year), with order backlog based on long-term contracts with local governments reaching ¥9,954 million (125.3% year-on-year), enhancing revenue visibility.
"OpenWork Recruiting," a direct recruiting service leveraging "OpenWork," one of Japan's largest employee review platforms, has accumulated approximately 1.65 million registered web resumes, achieving strong revenue growth of ¥3,247 million (134.2% year-on-year). The overall gross profit margin of the recruitment placement business is extremely high, exceeding 98.1%.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal periods has been on an expanding trend, from ¥32,644 million in FY2021 to ¥41,522 million in FY2025. In FY2025, an impairment loss was recorded, resulting in a significant decline in profit, with operating profit of ¥4,204 million and profit for the period of ¥1,621 million. However, in Q1 FY2026 (January–March), revenue reached ¥10,688 million (114.1% year-on-year), operating profit ¥1,489 million (121.9% year-on-year), and quarterly profit attributable to owners of parent ¥867 million (116.2% year-on-year), achieving double-digit growth at every profit stage. This was driven by the Consulting & Cloud business (Cloud segment up 119.1% year-on-year) and the Matching Division (recruitment placement up 121.5% year-on-year). In terms of the external environment, improvements in the employment and income environment and rising needs for promoting human capital management served as tailwinds. Against the full-year forecast (revenue of ¥46,700 million, operating profit of ¥6,310 million), the company has stated that progress is “proceeding smoothly.”
Growth Strategy
Aiming for operating profit of ¥15.0 billion in 2030 through deepening the recurring-revenue model of cloud services and expanding into new business areas
Expanding the diagnostic service "Motivation Cloud Engagement" from large enterprises to domestic mid-sized companies. In the manufacturing and construction industries, adoption by mid-sized companies has already accelerated, and the company aims to deepen penetration in industries where large-company adoption is progressing. As of end of March 2026, the number of deliveries reached 1,393, with monthly fee revenue of ¥625,130 thousand (120.0% year-on-year), progressing as planned.
Cloud-enabling part of the consulting business, offering a recruitment DX service combined with the aptitude test "BRIDGE" and ZENKIGEN's "harutaka". Released in April 2026, with monthly fee revenue progressing smoothly. Compared to the diagnostic service "Engagement," this service is ramping up faster, and further growth is expected going forward.
Currently developing in-house a cloud service that leverages AI agents to free up time for managers to focus on core responsibilities. By cloud-enabling management support, which has traditionally centered on training programs, the company aims to expand the number of supported companies and enhance sophistication through data utilization. Development is progressing smoothly toward release within 2026.
Sharing the customer bases of Japan Strategic Finance (a group of small- and mid-cap listed companies), made a wholly owned subsidiary in April 2025, and E-Associates (a group of large JPX400-listed companies), made a wholly owned subsidiary in August 2025, to promote cross-selling of highly recurring services such as video distribution. In 1Q FY2026, revenue in the IR support business rose substantially to ¥957 million (148.2% year-on-year).
Medium-term growth strategy formulated in February 2026. ARR targets of ¥15.0 billion by end of December 2028 and ¥24.0 billion by end of December 2030 have been set as key indicators. Business growth is being accelerated on two fronts: expansion of new services (cloud-enabling transformation services) and expansion of existing services (extending the target to mid-sized companies). Progress in 1Q 2026 was confirmed to be in line with the plan.
Last updated: July 17, 2026