Kinjiro Co.,Ltd.
4013・Growth Market・Information & Communication
Business
Kinjiro Co., Ltd. is an HRM solution vendor that provides an integrated suite of attendance management, personnel management, payroll management, and health management services, centered on "Universal Kinjiro," an HRM platform for mid-to-large enterprises, and "JOBEE," a cloud-based HRM solution for small and medium-sized enterprises. The company offers its products and services in both cloud and on-premise formats, with a track record of implementation at more than 5,000 companies and organizations. Its main customers are mid-sized and larger enterprises, and it leverages a partner sales channel with Otsuka Corporation as its main partner. The company utilizes its Vietnamese subsidiary (Kinjiro Vietnam Co., Ltd.) as a development base and provides services using its own cloud infrastructure.
Business Model
The company builds recurring revenue on two pillars: cloud license sales (monthly billing) and premium support sales for on-premises deployments (annual and monthly billing). In FY2025, recurring revenue accounted for 70.4% of HRM Business sales, with cloud license sales alone reaching 59.8%. Cloud services are operated using the company's own facilities, and consulting support at the time of implementation and sales of attendance management terminals also serve as revenue sources. Partner sales channels, led by Otsuka Corporation (38.3% of sales), are responsible for customer acquisition.
Company Strengths
The cloud service churn rate at the end of FY2025 remained at an extremely low 0.22% (0.24% in the prior period). The high degree of operational dependency on the HRM platform, which integrates management of attendance, health, personnel, and payroll data, along with initiatives to improve customer satisfaction, has raised switching costs and supported the steady accumulation of recurring revenue.
The number of cloud service users grew approximately 11-fold, from 72,226 at the end of 2016 to 803,020 at the end of 2025. The number of contracted companies also increased from 381 to 2,599. In FY2025 alone, net additions reached 169,772 users (+26.8% versus the prior period-end), demonstrating a sustained ability to acquire new customers.
In FY2025, cost of sales was held nearly flat at ¥1,715 million (down 0.6% year on year), while net sales expanded to ¥5,370 million (up 22.7% year on year). As a result, gross profit rose to ¥3,655 million (up 37.9% year on year). The high growth in cloud license sales improved the sales mix, driving a structural improvement in profit margins.
ENVALITH's Perspective
Performance Trend
From FY2021 to FY2025, revenue grew from ¥3,324 million to ¥5,370 million, and operating profit grew from ¥262 million to ¥1,521 million, achieving five consecutive fiscal years of revenue and profit growth. In particular, in FY2025 operating profit more than doubled year on year, and the operating profit margin reached 28.3%. However, in Q1 of FY2026 (ending December 2026) (January–March 2026), while revenue increased to ¥1,332 million (up 6.3% year on year), maintaining revenue growth, an increase in cost of sales (up 19.7% year on year) and an expansion in foreign exchange losses (from ¥1 million in the same period of the previous year to ¥8 million in the current period) caused operating profit of ¥326 million (down 7.0% year on year), ordinary profit of ¥319 million (down 8.6% year on year), and quarterly net profit of ¥207 million (down 11.3% year on year), with all profit items falling below the same period of the previous year. Depreciation expense increased 24.9% year on year to ¥255 million, and upfront software investment is putting pressure on profits. The full-year forecast remains unchanged, maintaining revenue of ¥6,000 million and operating profit of ¥1,601 million.
Growth Strategy
Sustainable growth through cloud license expansion and accumulation of recurring revenue
Amid growing market needs, cloud license sales in Q1 FY2026 (ending December 2026) increased 28.4% year-on-year to ¥901 million. The company aims to strengthen its stable revenue base through the expansion of accumulation-type revenue supported by a low churn rate.
The company is promoting the migration of existing on-premise customers to the cloud, aiming to increase the recurring revenue ratio. The on-premise business declined 19.2% year-on-year in Q1 FY2026 (ending December 2026), and continues to shrink, indicating that the migration is steadily progressing.
The company aims to improve ARPU through cross-selling to existing customers via "Universal Kinjiro HR Management" and "Universal Kinjiro Payroll Management." Growing needs for the centralization of attendance and health management information serve as a tailwind, but building a track record in the payroll and HR domain remains an ongoing challenge.
In addition to existing products for large and mid-sized enterprises, the release of the new product "JOBEE" for small and medium-sized enterprises expands the target customer base. The company aims to boost sales by accessing new market segments.
The company continues to acquire customers by leveraging its sales partnership with Otsuka Corporation. Acquiring new customers through the extensive sales network supports the expansion of cloud license sales. The high degree of dependence is recognized as a risk.
The company aims to reliably capture the demand for advance investment from companies anticipating the Labor Standards Act amendment scheduled for FY2027 and beyond, and to expand adoption of its system that supports the establishment of sophisticated and flexible labor management structures.
Last updated: July 17, 2026