MEIKO NETWORK JAPAN CO.,LTD.

Business Details

The Company and its five consolidated subsidiaries (MAXIS Education, K-Line, TOMONI, One link, and Kuusu Corporation) directly operate the individualized tutoring school "Meiko Gijuku" for all grade levels using the "independent learning / individualized instruction" method. In addition to tuition revenue, the segment also generates revenue from sales of teaching materials, tests, and other products. This core business accounts for approximately 57.5% of total group sales, and improving profitability starting from the recovery of enrolled student numbers is positioned as the most critical challenge in the medium-term management plan "MEIKO Transition."

Recent Overview

Both sales and profit increased year-on-year, and enrolled student numbers continued their recovery trend

In the cumulative nine months of Q3 FY2026 (ending March 2026) (September 2025 to May 2026), sales in the Meiko Gijuku Directly-Operated Business were ¥10,644 million (up 5.7% year-on-year), and segment profit was ¥1,170 million (up 13.7% year-on-year), achieving both higher sales and higher profit. The number of enrolled students at directly-operated classrooms reached 31,276 (up 1,222 year-on-year), continuing its recovery trend. Meanwhile, the number of directly-operated classrooms stood at 472 (down 5 year-on-year), continuing a slight downward trend. Initiatives such as measures implemented under the company system, classroom renovations, use of the Plus 10 teaching materials, and enhanced hospitality contributed to these results.

Key Products

Growth Drivers

• Continued recovery in the number of enrolled students (total directly-operated enrollment of 31,276 for the cumulative nine months of Q3 FY2026 (ending March 2026), up 1,222 year-on-year)
• Promotion of a region-focused strategy integrating directly-operated and franchise classrooms through the company system
• Improved customer satisfaction on the hardware side through classroom renovations and updates to fixtures and equipment
• Improved operational efficiency and customer retention through DX using the App Student ID and App Instructor ID
• Improved instructional quality through use of the Plus 10 teaching materials based on the patented Meiko-style 10-Step Learning Method
• Strengthened instructional capabilities of classroom managers and instructors through training and qualification acquisition promotion (e.g., hospitality certifications)
• Provision of a safe and secure learning environment through psychological aptitude testing (MVCL) during staff recruitment

Risks

• Risk of medium- to long-term market contraction due to the declining school-age population
• Continued decline in the number of franchise classrooms (1,159 classrooms at the end of Q3 FY2026 (ending March 2026), down 23 year-on-year), affecting downstream sales
• Risk of household budget pressure and reduced education spending among families raising children due to rising prices, higher interest rates, and soaring real estate prices
• Intensifying competition due to an increase in late-entrant operators and diversification of educational services (e.g., use of generative AI)
• A slight downward trend in the number of directly-operated classrooms (472 classrooms at the end of Q3 FY2026 (ending March 2026), down 5 year-on-year)
• Risk of fluctuating customer demand due to changes in education policy, such as the elimination of private high school tuition fees