Link and Motivation Inc.

Business Details

Using "Motivation Engineering" as its core technology, this segment supports companies in enhancing engagement with their stakeholders. It comprises two businesses: Consulting & Cloud (organizational diagnosis/transformation consulting plus the HRTech cloud service "Motivation Cloud") and IR Support (integrated report production, video distribution, etc.). Its main customers are listed companies and large enterprises both domestically and overseas, and its ability to offer a one-stop service from diagnosis through transformation differentiates it from competitors. It is positioned as a key growth driver for the group as a whole.

Recent Overview

Both the Consulting & Cloud and IR Support businesses achieved substantial revenue growth, with segment profit up 120.2% year on year

In Q1 FY2026 (January to March), revenue for the Organizational Development Division was ¥4,287 million (118.7% year on year), and segment profit was ¥2,954 million (120.2% year on year). The Consulting & Cloud business was driven by cloud services (¥1,935 million, 119.1% year on year), reaching ¥3,411 million overall (111.2% year on year). The IR Support business grew substantially to ¥957 million (148.2% year on year), driven by the contribution of video distribution services from the full consolidation of two subsidiaries (Japan Strategic Finance and E-Associates). Motivation Cloud monthly fee revenue declined compared to end of December 2025 due to seasonality in contract renewal timing, but remained solid at 120.0% year on year. Progress toward the end of December 2026 target of ¥700,000 thousand is on track. In April 2026, the company launched "Motivation Cloud Entry Management," a recruiting support cloud service, beginning expansion of new services.

Key Products

Growth Drivers

• Growing demand for the Consulting & Cloud business driven by rising needs to promote human capital management (large enterprises' focus shifting from "disclosure" to "transformation")
• Expansion of Motivation Cloud monthly fee revenue (¥625,130 thousand at end of March 2026, 120.0% year on year, targeting ¥700,000 thousand by end of December 2026)
• Continued increase in the number of deliveries (from 1,012 cases at end of March 2025 to 1,393 cases at end of March 2026)
• Accumulation of new orders through expansion into mid-sized companies (adoption accelerating among mid-sized companies in manufacturing, construction, etc.)
• Expansion of new cloud services (recruiting support service "Entry Management" to be released in April 2026, and a management support cloud service planned for release within 2026)
• Expansion of the customer base and strengthening of stock-type services (such as video distribution) in the IR Support business through subsidiarization (Japan Strategic Finance and E-Associates)
• Expansion of the Motivation Cloud service lineup through the full consolidation of Unipos
• Medium-term plan: targeting operating profit of ¥10.0 billion in FY2028 (ending December 2028) and ¥15.0 billion in FY2030 (ending December 2030), with ARR targets of ¥15.0 billion by end of 2028 and ¥24.0 billion by end of 2030

Risks

• Risk that Motivation Cloud monthly fee revenue fluctuates between quarters due to the seasonality of contract renewal timing (revenue at end of March 2026 declined compared to end of December 2025)
• Risk of decreased inflow to service sites and fewer business negotiations due to changes in customer search behavior amid the rise of generative AI
• Risk of delays in the launch and adoption of new services related to the cloud-ification of consulting (recruiting support and management support)
• Risk of revenue fluctuation in the IR Support business due to its reliance on flow-type revenue such as integrated report production, during the transition period toward stock-type revenue
• Risk of delays in subsidiary integration and synergy creation from M&A (realizing cross-selling between Japan Strategic Finance and E-Associates)
• Geopolitical and foreign exchange risks associated with overseas expansion (five Asian countries)