EduLab, Inc.
4427・Growth Market・Information & Communication
Test & License Business
Licensing business for English tests and learning services leveraging IRT/CAT technology
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Revenue (H1 FY2026, ending March 2026) | ¥374 million | ¥404 million (H1 FY2025, ended March 2025) | ↓ |
| Segment Profit (H1 FY2026, ending March 2026) | ¥111 million | ¥104 million (H1 FY2025, ended March 2025) | ↑ |
| Segment Profit Margin (H1 FY2026, ending March 2026) | 29.6% | 25.7% (H1 FY2025, ended March 2025) | ↑ |
| Revenue YoY | △7.3% | － | ↓ |
| Segment Profit YoY | +6.8% | － | ↑ |
Business Details
Applying scientifically grounded testing and learning theory, the company provides the English proficiency assessment test "CASEC" for universities, private companies and individuals, and "EIKEN Jr." for young children and lower elementary school students, among other offerings. Main customers are educational institutions, private companies, and individuals. In the first half of FY2026 (ending March 2026), revenue declined because some services were discontinued from the second half of FY2025 (ended March 2025) onward as part of a business structure reform, but segment profit increased thanks to cost rationalization.
Recent Overview
Revenue declined due to discontinuation of some services, but cost rationalization improved profit margin
In H1 FY2026 (October 2025 to March 2026), segment revenue was ¥374 million (down 7.3% year on year) as some services were discontinued from the second half of FY2025 (ended March 2025) onward as part of a business structure reform. On the other hand, thorough cost rationalization resulted in an increase in segment profit to ¥111 million (up 6.8% year on year), with the segment profit margin improving to 29.6%. In addition, the company began offering "EIKEN® Grade Simple Assessment powered by CASEC" in January 2026, advancing the rollout of new services aimed at expanding sales from the second half onward.
Key Products
Growth Drivers
- Focus on quality and service improvement initiatives and customer development for the core products "CASEC" and "EIKEN Jr."
- Improved cost structure and profit margin through the elimination of unprofitable services (achieving a 29.6% profit margin in the first half)
- Expansion of sales from the second half onward driven by the launch of the new "EIKEN® Grade Simple Assessment powered by CASEC" service
- Increase in demand for English tests driven by the trend toward earlier English education and growing reskilling needs
Risks
- Structural decline in revenue due to the discontinuation of some services (such as TEAP CBT)
- Risk of continued decline in license revenue from CASEC and English speaking tests
- Medium- to long-term contraction of the domestic English test market due to the declining birthrate
- Dependence on the Public Interest Incorporated Foundation Eiken Foundation of Japan as a major customer (accounting for 34.0% of overall group revenue)
- Need for continued investment in system and content development to maintain differentiation from competitors
Last updated: December 24, 2025