en Inc.

Business Details

The sole reportable segment operated by the en Japan Inc. group. In Japan, the company offers job listing sites (en Tenshoku, engage, etc.), recruitment placement (en Agent, en world Japan), applicant tracking systems (Zecoo), reference checking (back check), and Education & Assessment Services. Overseas, it operates in India (IT engineer dispatch, recruitment placement) and Vietnam (job listing sites, recruitment placement). With "recruitment and post-hire success support" at the core of its business, the segment is responsible for matching companies and job seekers both domestically and internationally.

Recent Overview

Year one of structural reform: decision to divest the engage business, ¥5,000 million in share buybacks executed, revenue and profit decline

FY2026 (ending March 2026) was the first year of structural reform, during which the company pursued three strategies: business portfolio review, cost reduction, and growth investment. Revenue was ¥59,093 million (down 10.0% year on year), and operating profit was ¥3,962 million (down 32.7%). Net profit fell sharply to ¥2,616 million (down 65.7%) due to the absence of the prior period's ¥5,456 million gain on the sale of Timee shares. The engage business transfer of 85.1% of shares to Kakaku.com was completed as of April 1, 2026. back check Co., Ltd. was acquired for ¥1,942 million and consolidated. The company executed a ¥5,000 million share buyback, reducing net assets to ¥31,824 million. For FY2027 (ending March 2026), the company forecasts net profit of ¥5,464 million (up 108.9% year on year), reflecting an expected ¥4,449 million gain on the sale of engage shares.

Key Products

Growth Drivers

• Expansion of global recruitment placement through consultant headcount growth and productivity improvements at en world Japan (agent-business revenue up 9.4% year on year)
• Growth in overseas IT engineer dispatch (India and U.S. business) (overseas revenue up 7.6% year on year)
• Substantial revenue growth in Other Recruitment Services driven by the newly consolidated back check Co., Ltd. and higher per-transaction unit prices at Zecoo (up 41.1% year on year)
• Revenue growth in Education & Assessment Services driven by expanded use of talent management systems and onboarding services (up 3.8% year on year)
• Expected recognition of a ¥4,449 million gain on the sale of shares in affiliated companies related to the engage share transfer to Kakaku.com, to be recorded in Q1 FY2027 (ending March 2026)
• Improving trend at en Tenshoku driven by an increase in the number of client companies (signs of bottoming out despite continued revenue decline)
• Advancement of business portfolio restructuring, cost reduction, and growth investment in the second year of structural reform (FY2027, ending March 2026)

Risks

• Continued revenue decline at en Tenshoku due to the effects of investment restraint through the prior period (FY2026 (ending March 2026) revenue down 12.0% year on year)
• Structural shrinkage of consolidated revenue due to the deconsolidation of the engage business (from FY2027, ending March 2026 onward) (FY2027 (ending March 2026) revenue forecast of ¥50,000 million, down 15.4% year on year)
• Cash and cash equivalents fell sharply from ¥23,584 million to ¥12,480 million due to a ¥5,000 million share buyback and ¥3,023 million in dividend payments
• Recognition of an impairment loss of ¥386 million (software and software in progress) on certain asset groups within domestic recruitment services
• Recognition of ¥170 million in restructuring costs related to the sale of engage shares, with risk of additional costs arising from future structural reforms
• External economic volatility risk in the Vietnam business (impact from Chinese and U.S. economic conditions)
• Increase in non-operating expenses, including an expanded investment partnership operating loss of ¥245 million (versus ¥33 million in the prior period)
• Continued profit decline on a business-profit basis, with FY2027 (ending March 2026) operating profit forecast at ¥2,800 million (down 29.3% year on year)