ENVALITH
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MEDLEY,INC.

4480・Prime Market・Information & Communication

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株式会社メドレー logo
MEDLEY,INC.4480

Business

MEDLEY, Inc. operates under the mission of "Creating the future of medical healthcare," developing the HR Platform Business centered on Job Medley, a recruitment system for medical, nursing care, and childcare facilities, and the Healthcare Platform Business (under the "MEDLEY AI CLOUD" brand), which brings together the cloud-based electronic medical record system CLINICS, the dispensing pharmacy system MEDIXS, and the dental practice support system DENTIS, among others. Founded in 2009 and listed in 2019, the company views the structural challenges of labor shortages and DX (digital transformation) in the medical healthcare sector as business opportunities, providing seamless coverage from recruitment to medical operations support. Its main customers are medical healthcare establishments such as hospitals, clinics, nursing care facilities, and dispensing pharmacies, with the number of customer establishments reaching 448,000 as of the end of December 2025.

Business Model

The HR Platform Business derives its main revenue from success-based fees upon successful placement (a low unit price of 3-12% of annual salary), pursuing growth by expanding the number of client business locations multiplied by ARPU. The Healthcare Platform Business is characterized by stock-type revenue from SaaS-based monthly subscriptions with high retention rates ("MALL" retention rate of 99%). The company has a flywheel structure that leverages the client base of 422,000 business locations acquired through recruitment for cross-selling healthcare SaaS. As a medium-term target, the company has set a goal of ¥100.0 billion in net sales and ¥20.0 billion in EBITDA for FY2029 (ending December 2029).

Company Strengths

The number of client establishments for "Job Medley" reached 422,000 as of the end of December 2025 (approximately 37% of the total 1,155,000 establishments across the entire medical/healthcare field), with cumulative registered members of approximately 3.04 million. The number of client establishments has continued to expand every period, from 294,000 at the end of FY2022 (ending December 2022) to 448,000 at the end of FY2025 (ending December 2025).

"Job Medley"'s success-fee-based recruitment pricing is set at 3-12% of the hired employee's annual salary, significantly lower than the 20-35% typical of general staffing/recruitment services. By designing the recruitment process to be completed entirely online, the company keeps personnel costs down, achieving a pricing structure that is accessible even for small and medium-sized healthcare establishments.

Since 2021, the company has successively made subsidiaries of and merged with Pacific Medical (operator of the hospital-oriented electronic medical record system "MALL"), Guppy's (operator of "Guppy Kyujin"), Offshore (operator of "@link" for obstetrics and gynecology), and Axis Route Holdings (operator of "MEDIXS" for dispensing pharmacies), among others, building a suite of products covering the entire range of hospitals, clinics, dental clinics, and dispensing pharmacies.

ENVALITH's Perspective

Revenue for Q1 FY2026 (ending December 2026) was ¥10,189 million (up 25.2% year on year), continuing its growth trend. Meanwhile, the Healthcare Platform Business segment loss (before allocation of company-wide common costs) was ¥168 million, a reversal from a profit of ¥197 million in the same quarter of the previous year. The main cause is cited as investment in strengthening the organizational structure and expanding AI functionality to achieve high revenue growth, but the timeline for investment recovery remains unclear, and the pace of narrowing the company-wide operating loss (¥67 million) warrants close monitoring.

The full-year forecast for FY2026 (ending December 2026) remains unchanged at revenue of ¥46,400 million (up 26.1% year on year), EBITDA of ¥5,800 million (up 20.3%), and operating profit of ¥2,950 million (up 37.2%). Q1 revenue of ¥10,189 million represented only about 22% of the full-year forecast, and even accounting for the seasonality of the HR Platform Business, in which hiring is concentrated in April, the weighting of profit toward the second half is substantial. In terms of the external environment, chronic labor shortages in the healthcare and nursing care sectors continue to underpin structural demand, and the probability of achieving the full-year forecast is considered to remain intact.

As of the end of March 2026, treasury stock stood at ¥6,526 million (up ¥1,683 million from the end of the previous fiscal year), and long-term borrowings (current and non-current combined) stood at ¥20,028 million (up ¥3,941 million from the end of the previous fiscal year), pushing up financial leverage. The equity ratio declined to 29.9% (from 35.9% at the end of the previous fiscal year). The structure in which intangible fixed assets of ¥23,128 million, including goodwill of ¥12,923 million, account for 53% of total assets remains unchanged, and continued attention to the risk of goodwill impairment associated with M&A is warranted.

Growth Strategy

Aiming for ¥100 billion in revenue and ¥20 billion in EBITDA in FY2029 (ending December 2029), driven by both maximizing the customer base and improving ARPU

Ongoing improvements to service site functionality and usability have driven steady growth, with client facility count reaching 457,000 as of the end of March 2026 (up 2.0% from the previous fiscal year-end) and listed job postings reaching 477,000 (up 1.4%). Application volume has also maintained an upward trend, steadily building the foundation for expanding performance-based fee revenue.

The client facility count for the online training system "Job Medley Academy" grew in the first quarter of FY2026 (ending December 2026), contributing to revenue growth in the HR Platform Business. Growth investment continues, with ARPU improvement expected through horizontal expansion into the nursing field and other areas.

AI features aimed at improving operational efficiency at medical sites and enhancing the patient experience continue to be expanded. The number of participating medical institutions increased to 23,000 as of the end of March 2026 (up 1.2% from the previous fiscal year-end). Although upfront investment in strengthening the organizational structure is generating short-term losses, the aim is to achieve medium- to long-term profitability through the accumulation of recurring revenue.

In January 2026, the brand integration of "Kaigo no Honne" into "Minkai" was completed. Active sales activities continue to expand content and increase the number of facilities available for referral. Due to the impact of the sale of the Guppy Healthcare business, first-quarter revenue declined to ¥266 million (down 22.3% year-on-year), though efficiency is being pursued through business consolidation.

Investment continues to expand the recruitment system business in the United States. The business is in an upfront investment phase for operational setup, which is a factor contributing to losses in the New Development Services segment, but the aim is to develop overseas markets in the future.

Last updated: July 17, 2026