Reiwa Accounting Holdings Co., Ltd.
296A・Growth Market・Services
Reiwa Accounting Holdings Co., Ltd.
296A・Growth Market・Services
Business
Reiwa Accounting Holdings, Inc. serves listed companies, large enterprises, REITs, SPCs, and medical institutions as its primary clients, with continuous accounting consulting services (Long) as its core business. The company provides end-to-end accounting support, from journal entry input to financial statement preparation and securities report compliance, distinguishing itself through strategic accounting practice support that goes beyond simple bookkeeping outsourcing. Under a group structure that includes 6 consolidated subsidiaries, the company operates its consulting business alongside education and staffing/placement services, and AI-driven system development. It is a growth company that listed on the Tokyo Stock Exchange Growth Market in December 2024.
Business Model
Consulting operations (Long), which account for 80.7% of revenue, are auto-renewing continuous contracts, boasting an extremely high contract retention rate with a cancellation rate of 0.148% (average for April 2023–March 2026). The business model with large corporate groups begins with a limited scope of work and expands the range of services and number of contracts through trust-building, with average annual fee per client group of approximately ¥28,325 thousand (FY2026, ending March 2026). Project-based Short operations (18.4% of revenue) arise as derivative orders from Long operations, complementing revenue.
Company Strengths
The contract renewal rate for FY2024 (ending March 2024) through FY2026 (ending March 2026) was 99.852% (99.979% for FY2026 (ending March 2026) alone). The number of client groups reached 177 as of the end of March 2026, with the average annual fee for the top 100 companies at approximately ¥48,305 thousand and for the top 10 companies at approximately ¥233,458 thousand, indicating significant room for further deepening. Involvement with nearly half of existing REITs has also contributed to gaining the trust of large corporations.
The operating margin for FY2026 (ending March 2026) was 34.8% (a 4.8-point improvement from 30.0% in the prior period), and the gross profit margin was 58.2% (up from 53.6% in the prior period). While revenue increased 14.6%, the increase in cost of sales was contained to 3.3%, reflecting the highly profitable structure of knowledge-intensive services and the effects of productivity improvement initiatives.
Accounting consulting services for listed and large enterprises can only be provided stably and continuously when a large number of specialists work together. In addition to qualified professionals such as certified public accountants, the Company has developed a large number of professionals through in-house training combining classroom instruction and practical training, and has also established a collaborative framework with its Vietnamese subsidiary (approximately 70 employees, of whom about 20% hold accounting qualifications).
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), the company achieved revenue of ¥5,705 million (up 14.6% year-on-year), operating profit of ¥1,988 million (up 33.0%), and net income attributable to owners of the parent of ¥1,421 million (up 40.0%), marking substantial profit growth for the second consecutive period. The operating margin improved to 34.8% (from 30.0% in the previous period), and ROE surged to 49.6% (from 37.3% in the previous period). The absence of ¥21 million in listing-related expenses recorded in the previous period contributed to the margin improvement. As an external environment factor, rising demand for consulting services driven by companies' labor shortages and increasingly complex accounting operations provided a tailwind. The company's forecast for FY2027 (ending March 2027) calls for revenue of ¥6,300 million (up 10.4%), operating profit of ¥2,160 million (up 8.7%), and net income of ¥1,440 million (up 1.3%), indicating a significant deceleration in the profit growth rate.
Growth Strategy
Pursuing sustainable growth across four axes: deepening existing client relationships, acquiring new clients, building a talent circulation ecosystem through education, and developing systems
Continuously expanding the scope of outsourced work within existing client groups to increase average annual fees per client group. Stable revenue accumulation has been achieved against a backdrop of high contract retention rates, and this remained a key driver of sales growth in FY2026 (ending March 2026) as well.
Continuously acquiring new clients among listed companies and large enterprises to expand the number of contracts. Demand for highly specialized accounting support is rising against a backdrop of corporate labor shortages and increasing complexity of accounting operations, providing a favorable environment for new client acquisition.
Gradually expanding the accounting practice education and staffing/placement business operated by Reiwa Human First Co., Ltd., positioning it as a talent supply source for the consulting business. This pursues both mitigation of personnel acquisition risk and business diversification simultaneously.
Miracle Keiri Co., Ltd., which became a consolidated subsidiary from FY2026 (ending March 2026), is advancing systems development. This is expected to contribute to ongoing productivity improvements in the consulting business, while also being nurtured as an independent business in its own right. Software under construction of ¥58 million was recorded in FY2026 (ending March 2026), indicating that development investment is now in full swing.
Last updated: July 19, 2026