ROXX.inc

Business Details

Under the mission of "creating a turning point of the era," the company operates the career-change platform "Z Career" targeting non-desk workers as its core business. It employs a platform model connecting three parties—job seekers, hiring companies, and partner staffing agencies—generating revenue through two axes: performance-based commission income (performance income) and monthly usage fees (recurring income). In FY2025 (ending September 2025), the company transferred its back check business to concentrate management resources on Z Career.

Recent Overview

Revenue declined but operating loss improved by ¥304 million YoY due to cost reductions; full-year forecast for profitability maintained

Revenue for H1 FY2026 (October 2025 to March 2026) declined to ¥1,876 million (down 5.2% YoY), while selling, general and administrative expenses were reduced by ¥391 million from ¥2,377 million to ¥1,986 million, resulting in a significant improvement in operating loss from ¥783 million in the prior-year period to ¥479 million. However, due to the recording of a cancellation penalty of ¥58,000 thousand as non-operating expenses, the ordinary loss came to ¥554 million. The company is advancing improvements in matching precision and optimization of the hiring process using AI technology. In February 2026, the company implemented a reduction of capital and capital reserves (¥1,516 million) to cover accumulated deficit. The full-year earnings forecast (revenue of ¥5,000 million, operating profit of ¥45 million) remains unchanged.

Key Products

Growth Drivers

• Continued high effective job openings-to-applicants ratio due to chronic labor shortages among non-desk workers
• Improved contract conversion rates through enhanced matching precision and advanced job recommendation functions using AI technology
• Improved overall productivity in recruitment activities through automation and efficiency improvements in the selection process (e.g., AI Interviewer)
• ARPU improvement through enhanced consulting for partner staffing agencies (approximately 400 companies)
• GMV growth through expansion of cumulative job seeker registrations
• Improved profitability through continued increase in take rate
• Concentration of management resources on Z Career following the transfer of the back check business
• Improved earnings through reduction of selling, general and administrative expenses (down ¥391 million YoY)

Risks

• Risk of operating losses continuing due to ongoing upfront investment (job seeker acquisition costs, personnel expenses, advertising expenses), with an operating loss of ¥479 million still recorded at the interim stage
• Cash and cash equivalents decreased by ¥1,732 million from the end of the prior fiscal year to ¥2,297 million at the interim period-end, requiring continued monitoring of cash flow
• Repayment burden of long-term borrowings of ¥1,348 million plus current portion of long-term borrowings of ¥582 million (total ¥1,930 million)
• Risk of temporary expenses such as cancellation penalties (¥58 million) expanding the ordinary loss
• Risk that the highly personalized nature of career-change support operations constrains business expansion due to personnel recruitment and training challenges
• Risk of system failures or personal information leaks (the company holds a large volume of personal information)
• Risk of intensifying market competition due to competitors entering the non-desk worker segment
• Risk of domestic economic deterioration and reduced hiring demand due to uncertainty over US trade policy trends and overseas conditions
• Achieving the full-year profitability forecast (operating profit of ¥45 million) requires substantial performance improvement in the second half, given the ¥479 million operating loss recorded in the first half