ENVALITH
株式会社リソー教育グループ logo

RISO KYOIKU GROUP CORPORATION

4714・Prime Market・Services

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株式会社リソー教育グループ logo
RISO KYOIKU GROUP CORPORATION4714

Business

RISO Kyoiku Group Co., Ltd. operates under the corporate philosophy "Everything for the future of children," centered on its fully one-on-one advanced individualized tutoring cram school "TOMAS," and develops five businesses: Home Tutoring Dispatch Business (Meimonkai), Early Childhood Education Business (Shingakai) for preschool and elementary school entrance exam preparation, In-School Individualized Tutoring Business (School TOMAS), and the experiential emotional education business Character & Emotional Development Camp Education Business (Plus One Education). Founded in 1985, the company transitioned to the Prime Market in 2022. In 2024, it became a consolidated subsidiary of Hulic Co., Ltd., and through a three-company partnership with Konami Sports Co., Ltd., opened the education-focused building "Kodomo Depart" in April 2025. Its primary customers are preschool, elementary, junior high, and high school students in the Tokyo metropolitan area and their parents, and its basic policy is a high-value-added, differentiation strategy premised on the declining birthrate.

Business Model

Each business is operated directly, adopting a stock-type business model with monthly tuition and course fees as the main revenue source. Through a "customer lock-in strategy" that gradually transitions customers from Shinga's Club (ages 1-3) as an entry point, to Shingakai (ages 4-6), and then to TOMAS, Meimonkai, and School TOMAS (elementary, junior high, and high school students), the company aims to retain customers within the group and maximize lifetime customer value. Total capital expenditure amounted to ¥1,171 million in FY2025 (ended February 2025), with continuous expansion of capacity through new school openings and renovations.

Company Strengths

The company independently developed its fully individualized tutoring system—featuring a blackboard in every room with one teacher per student—in 1990. It has established a unique position in the Tokyo metropolitan area as an individualized tutoring school focused on achieving strong entrance exam results, with the TOMAS segment recording sales of ¥17,855 million in FY2026 (ending March 2026)（February 2026 fiscal year-end）, accounting for approximately 52% of the group's total sales.

The company provides consistent services across an age continuum, from Shinga's Club (ages 1–3) to TOMAS and Meimonkai (elementary through high school students) and Inter TOMAS (English for working adults). This structure, which encourages customer migration within the group, achieves a customer lifetime value that a single business alone could not attain. The average number of TOMAS students during the fiscal year ended February 2025 increased 2.3% year on year.

In 2024, the company became a consolidated subsidiary of Hulic Co., Ltd., strengthening its financial foundation. Through a three-way partnership with Hulic and Konami Sports, the company simultaneously opened education-focused commercial buildings called "Kodomo Depart" in Nakano and Tama Plaza in April 2025. The company has announced plans to open approximately 20 facilities in the Tokyo metropolitan area, aiming to accelerate both new customer acquisition and its customer lock-in strategy.

ENVALITH's Perspective

Cumulative revenue for the first quarter of FY2027 (ending February 2027) reached a record ¥7,403 million for a first quarter, up 4.1% year on year. The operating loss was ¥213 million, an improvement of ¥386 million from ¥599 million in the same period of the prior year. The company has stated there is no change to its full-year earnings forecast (revenue of ¥35,640 million, operating profit of ¥2,875 million), and Q1 progress appears broadly in line with plan. However, achieving the full-year revenue forecast will require accumulating ¥28,237 million over the remaining three quarters, making performance in the second and fourth quarters—the seasonal peak periods for course enrollment—key to the outcome.

In the cram school industry, rising costs to secure quality instructors amid wage increase trends in other industries, along with rising recruitment and labor costs, continue to be an external factor structurally pressuring profitability. Cost of sales for the first quarter of FY2027 (ending February 2027) was ¥6,025 million, only a slight increase from ¥5,975 million in the same period of the prior year, and the gross profit margin improved to 18.6% (from 15.9% in the same period of the prior year). However, the liability for retirement benefits remains elevated at ¥2,801 million and warrants continued attention. Amid intensifying market competition driven by the declining birthrate, balancing price maintenance with securing student numbers remains a long-term challenge.

Total assets at the end of the first quarter of FY2027 (ending February 2027) stood at ¥20,446 million, down ¥2,220 million from the end of the previous fiscal year, and cash and deposits decreased by ¥3,312 million, from ¥8,081 million to ¥4,769 million. Net assets were ¥10,396 million (versus ¥12,265 million at the end of the previous fiscal year), and the equity ratio declined to 50.5% (from 53.8% at the end of the previous fiscal year). Retained earnings decreased significantly, from ¥3,445 million to ¥1,577 million, reflecting the seasonal Q1 loss and the impact of dividend payments. Amid ongoing capital investment such as the rollout of

Growth Strategy

Targeting net sales of ¥35,640 million for FY2027 (ending February 2027) through the expansion of Kodomo Depart, nationwide expansion of School TOMAS, and DX promotion

Rolling out "Kodomo Depart," an education-focused integrated facility jointly developed with Hulic and Konami Sports. Nakano and Tama Plaza locations opened in April 2025 and are operating steadily. By deploying multiple brands at the same location, the company aims to maximize the customer lock-in effect, acquire new customers, and increase the LTV of existing customers.

The In-School Individualized Tutoring Business continued its high growth, with cumulative sales for the first quarter of FY2027 (ending February 2027) up 16.3% year on year to ¥975 million. By promoting online delivery, the company is accelerating expansion to private junior and senior high schools nationwide, overcoming geographic constraints, and strengthening the group's overall revenue base. As the only segment consistently posting a profit (segment profit of ¥95 million), it serves as the group's growth driver.

Promoting the centralization of functions across group companies, centered on the Advertising & Marketing Department and the Real Estate Management Department. In the first quarter of FY2027 (ending February 2027), selling, general and administrative expenses were reduced by ¥143 million year on year, achieving an improvement of ¥386 million in operating loss. The company will continue to optimize advertising expenses and curb facility management costs.

The newly established DX Promotion Department is working to reduce administrative work hours through AI utilization and to maximize customer satisfaction. The company is promoting the development of new revenue bases leveraging digital technology, including the rollout of "Sundai Diverse" video lessons across all TOMAS locations and the expansion of MOPS (Meimonkai Online Personal School) at Meimonkai. Facility expansion also continues, including the new opening of the MOPS Minami-Kashiwa location.

Last updated: July 17, 2026