ENVALITH
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UNITED, Inc.

2497・Growth Market・Services

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ユナイテッド株式会社 logo
UNITED, Inc.2497

Business

United, Inc. originated in 1998 as an internet business incubator and now operates four segments: the Investment Business, Education Business, HR Matching Business, and AdTech/Content Business. In the Investment Business, the company invests its own funds in seed/early-stage startups, while in the Education Business, Besuko Co., Ltd. directly operates individualized-instruction cram schools mainly in regional areas. The HR Matching Business provides RPO, recruitment placement, and designer-specialized matching services, and the AdTech/Content Business operates an advertising platform centered on DSP and SSP. As of the end of FY2026 (ending March 2026), the company has 11 consolidated subsidiaries and manages its business portfolio under the purpose "Maximize the power of will, and accelerate the advancement of society."

Business Model

In the investment business, the company invests its own capital in startups, with capital gains from exits such as IPOs and M&A serving as the main source of revenue. The education business operates directly managed cram schools based on monthly tuition income, the staffing/matching business generates revenue from RPO and recruitment agency fees, and the ad-tech/content business earns usage fees and operational revenue from its advertising delivery platform. Across these businesses, the group aims for synergies through a flow of digital talent development → matching → value-up of investee companies.

Company Strengths

Since its founding in 1998, the company has continuously invested its own funds in domestic startups, building an investment portfolio centered on the pre-seed to early stages. As of the end of FY2026 (ending March 2026), investment business segment assets reached ¥9,380 million. The sourcing and screening capabilities cultivated through many years of investment activity constitute a proprietary asset that competitors cannot easily replicate in the short term.

At the end of FY2026 (ending March 2026), total net assets stood at ¥17,764 million, while total liabilities were limited to ¥2,285 million, maintaining an extremely high equity ratio. Cash and deposits totaled ¥5,963 million, giving the company a financial foundation that enables it to flexibly execute new and business investments using its own funds without relying on borrowings from financial institutions.

BESTCO Co., Ltd. operates in the regional individualized tutoring school market (exceeding ¥400 billion), and unlike competitors where franchising is the mainstream model, it has built a differentiated model that provides high-quality services at low prices by directly operating all of its classrooms. In FY2026 (ending March 2026), it recorded net sales of ¥3,690 million, up 107.2% year on year, confirming the expansion in scale following its consolidation as a subsidiary.

ENVALITH's Perspective

In FY2026 (ending March 2026), revenue declined 26.4% year-on-year to ¥8,863 million due to a decrease in the volume of shares sold from investee holdings, resulting in an operating loss of ¥1,222 million. This represents a sharp swing of approximately ¥3,868 million from the operating profit of ¥2,646 million recorded in the prior period (FY2025, ended March 2025), and the structural characteristic whereby single-year fluctuations in investment business earnings dominate consolidated results remains unchanged. The forecast for FY2027 (ending March 2027) also projects a low operating profit range of ¥0–200 million, underscoring the urgent need to build a stable earnings base.

Following the partial transfer of shares in Fog Inc. in April 2026, the company will become an equity-method affiliate and will be excluded from consolidation from FY2027 (ending March 2027) onward. Fog Inc. recorded an operating loss in FY2026 (ending March 2026) due to the loss of a major online lottery deal, so its deconsolidation has a positive aspect in eliminating a source of losses. On the other hand, with the loss of ¥3,998 million in ad-tech and content business revenue, the FY2027 (ending March 2027) revenue forecast is expected to shrink further to ¥7,800–8,200 million, and investors should closely monitor the trade-off between shrinking scale and improving profitability.

Cash and cash equivalents decreased by approximately ¥6,648 million, from ¥12,611 million at the end of FY2025 (ended March 2025) to ¥5,963 million at the end of FY2026 (ended March 2026). The main causes were a negative operating cash flow of ¥3,977 million, dividend payments of ¥1,373 million, and treasury stock repurchases of ¥1,129 million (aimed at resolving the parent-subsidiary listing relationship with Hakuhodo DY Holdings Inc.). The annual dividend forecast for FY2027 (ending March 2027) is ¥22 per share (a slight decrease from ¥23 in the prior period), indicating a policy of maintaining dividends; however, with net income forecast at only ¥0–50 million, the payout ratio is expected to reach an extremely high level, warranting scrutiny of its sustainability from a financial discipline perspective.

Growth Strategy

With the investment business, Besuko, and ad-tech positioned as core businesses, the company aims for profit recovery through individual strategies for each business segment.

While continuing proprietary capital investments in domestic pre-seed to early-stage companies, the company is focusing on 'Zenshin Investment' targeting AI-related stocks and startups addressing social issues. It aims to stabilize profit generation through diverse exit methods, including M&A, not limited to IPOs. The balance of operational investment securities is on an increasing trend, reaching ¥9,066 million.

In regional areas where supply of tutoring schools falls short of demand, the company provides high-quality services at low prices through directly operated school expansion. It aims to grow the business scale both by increasing the number of students per classroom and by opening new classrooms. In FY2026 (ending March 2026), revenue increased 107.2% year-on-year, but the segment continued to post a loss of ¥164 million.

Leveraging the advanced in-house development capabilities cultivated over many years of operating the DSP/SSP business, the company aims to create new products while maintaining the sophistication of existing ones. It seeks to maximize both advertiser ROI and media revenue, and has been positioned as the core business responsible for the profit base of the ad-tech business following the deconsolidation of Fogg Co., Ltd.

In April 2026, the company transferred a portion of its shares in Fogg Co., Ltd., making it an equity-method affiliate. By deconsolidating the company, which had recorded losses due to the loss of a large online lottery project, the company aims to improve consolidated profit/loss in FY2027 (ending March 2027). The gain or loss on sale is still being calculated, and the profit contribution after applying the equity method will need to await future disclosure.

The online education business operated by Brewus Co., Ltd. was transferred to System Shared Co., Ltd. effective December 31, 2025, resulting in a business restructuring loss of ¥80 million. This move streamlined unprofitable operations and enabled the concentration of management resources on the highly profitable individualized tutoring school business (Besuko Co., Ltd.).

Last updated: July 19, 2026