TEAR Corporation
2485・Standard Market・Services
Business
Tear Corporation was founded in 1997 and is a funeral services group operating under the management philosophy of "ceremonies of mourning and emotion." Combining 96 directly-operated stores, 74 franchise stores, and M&A subsidiaries (Hakkoden with 21 stores, Tokai Tenrei with 25 stores, and Tear Hokkaido with 3 stores), the company operated 219 stores as of the end of September 2025. In addition to its core funeral services business, it operates an FC business targeting other industries, and a real estate/reuse business (Total Life Design segment) that captures the needs of bereaved families after funerals. Membership in its "Tear no Kai" membership program has surpassed 580,000, and the group's total annual number of funeral services conducted, including FC operations, exceeds 26,000. Listed on the TSE Standard Market and the Nagoya Stock Exchange Premier Market.
Business Model
The Funeral Services Business, accounting for approximately 92% of net sales, derives its main revenue from funeral execution at directly-operated halls (outsourcing costs, labor costs, and ancillary goods sales). The Franchise Business builds stable earnings through the provision of know-how, merchandise sales, and Royalty Income. Other Businesses consist of Real Estate Purchase & Sales Services and Reuse Business (Used Goods Purchase & Sales) that leverage contact with bereaved families after funerals, forming a structure designed to maximize customer lifetime value.
Company Strengths
Revenue grew 76.7% over four years, from ¥12,203 million in FY2021 to ¥21,563 million in FY2025. Operating profit also expanded from ¥887 million to ¥1,643 million, with revenue, operating profit, and ordinary profit all achieving 5 consecutive years of increased revenue and profit. Group expansion through M&A and new store openings are driving growth.
Membership in the proprietary Tear no Kai (Membership Program) exceeds 580,000. The number of halls, combining directly-operated, franchise, and M&A subsidiary locations, reached 219 stores (as of end-September 2025), with the group and franchise combined annual funeral execution count exceeding 26,000 cases. Through a dominant store-opening strategy, the company operates 41 stores within Nagoya City alone, building a community-based customer acquisition foundation.
Hakkoden and Tokai Tenrei were brought into the group in November 2023, followed by Tear Hokkaido in July 2025. In FY2025 (ending September 2025), the full-year contribution from Hakkoden and Tokai Tenrei significantly contributed to a 12.0% increase in Funeral Services Business revenue (¥19,865 million). The number of funerals conducted increased 8.0% year on year to 19,773 cases, and the average revenue per funeral increased 3.3% year on year.
ENVALITH's Perspective
Performance Trend
Revenue achieved five consecutive periods of growth, rising from ¥12,203 million in FY2021 to ¥21,563 million in FY2025, but turned to a decline in the first half (interim period) of FY2026 (ending September 2026), coming in at ¥11,422 million (down 1.4% year on year). On the profit side, results deteriorated sharply, with operating profit of ¥1,004 million (down 35.9% year on year), ordinary profit of ¥909 million (down 42.3% year on year), and interim net profit attributable to owners of the parent of ¥517 million (down 49.1% year on year). As an external factor, the funeral industry as a whole saw declines in both the number of funerals and sales compared with the same period of the previous year, and in this environment, higher fixed costs stemming from increased advertising expenses, personnel costs, and the full-period contribution of Tear Hokkaido directly hit profits. The full-year earnings forecast (revenue of ¥23,700 million, operating profit of ¥2,035 million) has been left unchanged, but the first-half progress rate against the operating profit forecast stood at only 49.3%.
Growth Strategy
Store expansion through the three axes of directly-operated stores, franchises, and M&A, alongside expansion of the Total Life Design domain
In the first half of FY2026 (ending September 2026), the company newly opened 2 directly-operated stores, 1 Tokai Tenrei store, and 1 FC store, bringing the group's total venue count to 222. Meanwhile, the Tia Kasadera venue was closed due to relocation. Revenue growth is expected from the early operation of new venues.
Memoria Japan (now Tia Hokkaido), which became a subsidiary in July 2025, will contribute for a full year starting from FY2026 (ending September 2026). The company operates 3 stores centered around Sapporo City, recording 96 funerals in the first half. Improving brand recognition and venue utilization rates in the Hokkaido area remain key challenges.
The real estate business is expanding rapidly due to an increase in the number of properties purchased and sold, as well as handling of higher-priced properties. The reuse business also saw an increase in purchase transactions driven by sales promotion efforts targeting repeat customers. The establishment of the wholly-owned subsidiary Tia Next Co., Ltd. has specialized and expanded the real estate and inheritance support businesses. First-half other business sales reached ¥891 million (up 56.6% year on year), progressing steadily.
Under the slogan 'Shinsei Tia Group' (Reborn Tia Group), the company formulated a medium-term management plan and is promoting 8 strategies based on 4 thematic pillars. Initiatives underway include building SNS marketing capabilities, securing and retaining talent through wage system reforms, and implementing sales promotion measures. The company is currently in a phase of upfront cost investment, with a focus on recovering profitability from the second half onward.
Last updated: July 17, 2026