WASEDA ACADEMY CO.,LTD.
4718・Prime Market・Services
Business
Waseda Academy Co., Ltd. was founded in 1976 and operates college-prep instructional services for students from first grade through the third year of high school, with its main base in the Tokyo metropolitan area (Tokyo, Kanagawa, Saitama, Chiba, and Ibaraki). Centered on its standard Group Instruction Schools, the company provides a diverse range of educational services, including an individualized tutoring division (Waseda Academy Kobetsu Shingakukan, operating 76 schools), a university entrance exam division (Tōshin Satellite Prep School, operating 9 schools), a prep school for medical, dental, and pharmacy programs (Noda Kurze), an early childhood education classroom (Venture School Sun Kids), and overseas schools for children of Japanese expatriates (in London and New York). The company's source of competitive advantage lies in its track record of admissions to elite top-tier schools such as the Goshanke junior high schools, Kaisei, and Keio/Waseda-affiliated schools. In FY2026 (ending March 2026), the average number of enrolled students during the period reached 50,837.
Business Model
The majority of revenue consists of tuition income from students, including monthly fees and course fees. Strong results in admissions to elite top-tier schools enhance brand power and customer acquisition, forming a virtuous cycle in which increased student enrollment drives sales growth, which in turn leads to further admissions success. The individualized instruction segment also employs a franchise model, generating royalty income from affiliated schools. The company's core revenue strategy centers on maximizing Life Time Value (customer lifetime value) by retaining customers consistently from elementary school enrollment through the university entrance exam division.
Company Strengths
In the FY2026 (ending March 2026) entrance examination cycle, the number of successful applicants to the Goggle-Sanke (three most prestigious) junior high schools approached a record-high 700, while the number of successful applicants to the University of Tokyo, Waseda, Keio, and Sophia University also grew significantly. Admission results advanced across junior high, high school, and university entrance examinations alike, cementing the company's position as the top brand in the Tokyo metropolitan area. The virtuous cycle of admission results leading to improved recruitment, which in turn drives growth in the number of students, continues to sustain differentiation from competitors.
Net sales grew for five consecutive fiscal years, rising from ¥28,551 million in FY2022 (ended March 2022) to ¥37,658 million in FY2026 (ending March 2026). Operating profit more than doubled over the same period, from ¥1,822 million to ¥3,960 million. Net income of ¥2,487 million in FY2026 marked a record high for the second consecutive year, following the previous fiscal year's record. Financial soundness is also high, with an equity ratio of 63.2% and interest-bearing debt of only ¥525 million, while the company holds ¥9,644 million in cash and cash equivalents.
The company operates group instruction, individualized instruction, university entrance examination programs, and Tōshin Satellite Prep School in an integrated manner across the Tokyo metropolitan area, enabling consistent instruction from elementary school through university entrance examinations. The average number of students enrolled during FY2026 (ending March 2026) was 50,837 (up 4.0% year on year), led by 30,666 students in the elementary division. The LTV-maximizing model, which retains customers progressively from the elementary division through the high school division, enhances the stability of the company's revenue base.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), the company achieved its fifth consecutive fiscal year of revenue and profit growth, with net sales of ¥37,658 million (up 7.4% year on year), operating profit of ¥3,960 million (up 11.6%), ordinary profit of ¥3,968 million (up 10.2%), and net profit attributable to owners of parent of ¥2,487 million (up 6.3%). The operating profit margin on net sales improved to 10.5% (from 10.1% in the previous fiscal year). In extraordinary income and losses, the company recorded a gain on sale of fixed assets of ¥225 million, while also booking an impairment loss of ¥594 million following a revision to management accounting classifications, resulting in profit before income taxes of ¥3,599 million, a slight decrease year on year. Operating cash flow increased to ¥4,202 million (from ¥3,886 million in the previous fiscal year), and the cash balance at fiscal year-end rose to ¥9,644 million (from ¥7,166 million in the previous fiscal year). For FY2027 (ending March 2027), the company forecasts net sales of ¥40,520 million (up 7.6% year on year), operating profit of ¥4,239 million (up 7.0%), and net profit attributable to owners of parent of ¥2,752 million (up 10.7%).
Growth Strategy
Deepening the results-driven strategy and maximizing Life Time Value to achieve sustainable growth as an education company
Toward the 100-school network of Individual Instruction Schools set forth in the medium-term management plan, the Company had built a network of 76 schools, including franchise schools, as of the end of FY2026 (ending March 2026). In March 2026, the Company newly established the "Individual Instruction Headquarters" to strengthen collaboration with Group Instruction Schools and accelerate the opening of new schools.
From July to November 2025, the Company newly opened Toritsu Daigaku, Oji, and Tsukishima schools, expanding to a 9-school network. As new territory within the university entrance exam segment, the Company will continue to pursue aggressive expansion, contributing to the maximization of LTV through connections from Group and Individual Instruction.
The number of successful applicants to the prestigious "Gosanke" junior high schools approached a record-high 700, and the number of successful applicants to the University of Tokyo and Waseda-Keio-Sophia also increased substantially. The surge in exam pass results is generating a virtuous cycle of increasing student enrollment, business expansion, and further improvement in pass results, and the Company expects steady growth in student enrollment to continue in FY2027 (ending March 2027) as well.
The Company is advancing the sophistication of management control by leveraging a new accounting system, and has revised the management accounting classification. It will continue system investments aimed at creating new services, striving to improve customer satisfaction and enhance the added value of educational services through DX.
Through job fairs and enhanced internal recruiting, the Company is acquiring personnel who share its educational philosophy. It is improving teaching capabilities and service quality through various training programs and teaching skills contests, while also focusing on enhancing employee engagement. In FY2027 (ending March 2027), the Company expects to raise salary levels and make active investments in recruitment and training expenses.
Last updated: July 19, 2026