SEIGAKUSHA CO.,LTD.

Business Details

Covers four divisions—individualized tutoring, group class instruction, childcare, and other instruction—targeting students from infancy through working adults. Centered on its core brand "Kobetsu Shido Gakuin Free Step" (Individualized Tutoring Academy Free Step), the segment operates 277 company-operated classrooms and 52 franchise classrooms across the Kinki region, Kanto region, and overseas. It has strengths in improving students' academic performance and university entrance exam preparation, and offers diversified educational services including licensed nursery schools and a Japanese language school.

Recent Overview

Individualized tutoring, childcare, and the Japanese language school drove substantial growth in both net sales and profit

In FY2026 (ending March 2026), the education-related business segment recorded net sales of ¥15,050 million (up 6.2% year on year) and segment operating profit of ¥1,006 million (up 24.1% year on year). The individualized tutoring division benefited from increased student numbers, tuition fee revisions, and strong intensive courses. The class instruction division saw a decline in enrollment due to weak summer intensive course recruitment, which was offset by Ichie Juku. The childcare division benefited from increased benefit payments due to revisions to government-set prices, and the Japanese language school benefited from strong new student intake (enrollment up 16.8% year on year). On the cost side, personnel expenses, web advertising expenses, and rent in the Kanto region increased, but these were absorbed by sales growth. Impairment loss increased to ¥104 million (from ¥77 million in the prior period).

Key Products

Growth Drivers

• Continued increase in the number of students in the individualized tutoring division (20,590 as of end of November 2025, up 4.3% year on year)
• Improved student recruitment through enhanced web advertising
• Higher unit prices through tuition fee revisions in response to price inflation
• Increase in benefit payments and operating subsidies for the childcare division due to revisions to government-set prices
• Strong trend in international student intake at Kaisei Academy Japanese Language School (enrollment up 16.8% year on year)
• New classroom openings in the Kanto region (plans to open 13 new company-operated classrooms and 5 new franchise classrooms in the next fiscal year)
• Contribution of Ichie Juku Co., Ltd. to the class instruction division
• Expansion of the online-focused brand "Online Kobetsu Shido Free Step Link One"

Risks

• Declining school-age population due to the falling birthrate and intensifying competition in the cram school market
• Cost pressure from improved employee compensation, web advertising expenses, and rising rents in the Kanto region
• Declining enrollment trend in the class instruction division (6,038 as of end of November 2025, down 5.8% year on year)
• Risk of impairment of fixed assets (impairment loss of ¥104 million recorded in FY2026 (ending March 2026), an increase from the prior period)
• Goodwill amortization burden (balance of ¥123 million at end of FY2026 (ending March 2026), with amortization of ¥28 million during the period)
• Changes in the form of educational services due to university entrance exam system reforms and the spread of ICT education
• Impact of geopolitical risk and price inflation on enrollment and withdrawal trends