WASEDA ACADEMY CO.,LTD.

Business Details

The Waseda Academy Group's core business is exam-prep instruction for students from first grade of elementary school through third year of high school in the Greater Tokyo area (Tokyo, Kanagawa, Saitama, Chiba, and Ibaraki prefectures), operating group instruction, individualized instruction, and university entrance exam prep divisions. Under the educational philosophy of "nurturing children who give their true best," the company treats improved academic performance and admission to desired schools as its "core value," alongside its unique "Wase value," using its track record of admissions to elite top-tier schools as a source of competitive advantage. Through subsidiaries, the company also operates prep schools for medical, dental, and pharmacy school entrance exams, early childhood education classes, and instruction for Japanese expatriate children overseas (in the UK and US).

Recent Overview

All numerical targets achieved in the final year of the medium-term management plan, with the number of students exceeding 50,000 and record-high admissions results

In FY2026 (ending March 2026), net sales were ¥37,658 million (up 7.4% year on year) and operating profit was ¥3,960 million (up 11.6% year on year), achieving all numerical targets of the medium-term management plan. The average number of students during the period surpassed 50,000, reaching 50,837 (up 4.0% year on year). The number of students admitted to the "Gosanke" junior high schools approached a record-high 700, and the number of students admitted to the University of Tokyo and to Waseda, Keio, and Sophia universities also grew significantly. On the other hand, an impairment loss of ¥594 million on underperforming schools was recorded as an extraordinary loss. Waseda Academy Kobetsu Shingakukan expanded to a network of 76 schools, and Tōshin Satellite Prep School expanded to a network of 9 schools. For FY2027 (ending March 2027), the company forecasts net sales of ¥40,520 million (up 7.6% year on year) and operating profit of ¥4,239 million (up 7.0% year on year), and plans to increase the annual dividend by ¥20, from ¥55 to ¥75.

Key Products

Growth Drivers

• A virtuous cycle of enhanced customer acquisition and brand strength driven by growth in admissions results to elite top-tier schools (a record-high number of students admitted to the "Gosanke" junior high schools approaching 700, and a significant increase in students admitted to the University of Tokyo and to Waseda, Keio, and Sophia universities)
• Steady growth in the number of students, centered on the elementary division (50,837, up 4.0% year on year overall; 30,666 in the elementary division, up 4.9% year on year)
• Rapid growth in the high school division (2,879 students, up 13.0% year on year), boosting revenue per customer and maximizing LTV
• Expansion of the business domain through new school openings toward a 100-school network for individualized instruction schools (76-school network) and the establishment of the "Individualized Instruction Headquarters"
• Development of a new area within the university entrance exam division and maximization of Life Time Value through expansion of Tōshin Satellite Prep School (9-school network)
• Increased inquiries and greater brand awareness from advertising collaborations with a popular anime series (conducted for two consecutive years)
• Improved learning environment through renovation of existing schools and consolidation of locations, establishing a system that combines group and individualized instruction
• Creation of new educational services and improved customer satisfaction through the promotion of DX (digital transformation)

Risks

• Market contraction due to a declining school-age population from the ongoing decline in the birthrate (a gradual but medium- to long-term risk in the Greater Tokyo area)
• Impact on consumer sentiment from increased household burden due to rising prices
• Upward pressure on the cost ratio from rising labor costs (increases in salary levels and aggressive investment in recruitment and training expenses)
• Concerns over economic downturn and a slowdown in personal consumption due to further instability in US trade policy and geopolitical risk
• Increased expenses from capital investment for new school openings, relocations of existing schools, and renovations, as well as system investment for the creation of new services
• Risk of impairment at underperforming schools (an impairment loss of ¥594 million was recorded in FY2026, ending March 2026)
• Risk of additional losses arising from the negative net worth (¥44,108 thousand) of a subsidiary (Yoji Mirai Kyoiku Co., Ltd.)
• Increased costs to respond to university entrance exam system reforms and the digitalization of education
• Growing difficulty in securing talented personnel due to intensifying competition for recruitment