Key Positives From The Results
OpenWork Recruiting posted record quarterly revenue of JPY 995M (+43.5% YoY), further solidifying its position as the primary growth driver. OPM improved to 36.7% (+5.7pt YoY), and even after adjusting for the temporary effect of shifting ad spend to H2, operating leverage from top-line growth was clearly evident.
- OpenWork Recruiting Revenue Of JPY 995M (+43.5% YoY):Web resume registrations reached 1.75M (+21.4% YoY) and job listings hit 134K (+58.5% YoY), demonstrating expansion on both the supply and demand sides
- Operating Income Of JPY 504M (+55.4% YoY), OPM Up To 36.7%:Revenue growth outpaced the +20.7% increase in expenses, with operating leverage now materializing
- Full Acquisition Of BNG Partners (FY08/2025 Revenue: JPY 791M):Entry into the high-end recruitment agency space expands TAM from the direct recruiting market (~JPY 150B) to the broader recruitment agency market (~JPY 600B)
- Contract Liabilities Of JPY 808M (+JPY 198M Vs. Prior FY-End):Suggests a growing recurring revenue base driven by increased sales of new Recruiting plans and optional services
- Inaugural Dividend Declared (JPY 9.00/Share Annually, Targeting ~20% Consolidated Payout Ratio):Signals commitment to balancing growth investment with shareholder returns
Key Concerns From The Results
The 34.8% full-year operating income progress rate appears elevated, but management attributes this primarily to the back-loading of advertising spend into H2, implying higher costs ahead. Additionally, BNG Partners' OPM is sub-1% (operating income of JPY 2M on revenue of JPY 791M), making the margin dilution impact post-consolidation and the timeline for integration synergies key focal points.
- OpenWork (Review Platform) Revenue Of JPY 335M (+8.3% YoY) Shows Tepid Growth:Management is prioritizing user channeling toward Recruiting, stating it expects "current levels to be maintained for the time being," limiting standalone growth potential for this service
- Ad Spend Of JPY 182M (▲63.1% QoQ) Reflects Significant H2 Shift:A step-up in costs from Q2 onward will inevitably compress margins; full-year operating income is expected to land in line with guidance
- BNG Partners Consolidation (OPM: 0.3%) Begins In Q2:Goodwill amortization and PMI costs are expected to arise; quantitative impact is difficult to estimate as the acquisition price has not been disclosed
- Geopolitical Risks (Middle East Tensions, U.S. Trade Policy) Could Curb Client Hiring Activity:Job changers totaled 3.37M in Oct–Dec 2025, down ▲3% YoY, indicating a softening trend
- Alternative Data Services Revenue Of JPY 45M (+4.1% YoY) Remains Sluggish:No visible acceleration in growth as a potential third revenue pillar
Focus Areas / Items To Monitor Going Forward
- Concrete P&L impact following Q2 consolidation of BNG Partners (goodwill amount and amortization period, PMI costs, revenue and profit contribution). With the acquisition price undisclosed, the Q2 balance sheet disclosure will be a critical checkpoint
- Effectiveness of H2-concentrated ad spend in driving new user and Web resume acquisition, and confidence level in achieving the full-year operating income plan of JPY 1,450M. The impact of Q1 ad spend cuts on KPI growth rates needs to be verified with Q2+ data
- Pipeline for additional M&A toward the FY2030 mid-term targets (revenue JPY 15B, operating income JPY 3B), as well as the timing of disclosure on specific KPIs and investment envelope for the roll-up M&A strategy
- Estimated acquisition price, goodwill amount, and amortization period for BNG Partners
- Specific initiatives to improve BNG's OPM and quantitative targets for synergy realization
- Scale of M&A pipeline and upper limit on investment capacity toward the FY2030 mid-term plan
- Churn rate trends following the introduction of paid base fees for OpenWork Recruiting
- Development progress and targeted release timeline for AI matching functionality
- Monetization roadmap for OpenWork Career (MAU: 5,500)
- Degree of impact on user acquisition pace from back-loading ad spend into H2
- Recent shifts in client hiring behavior amid Middle East tensions and U.S. trade policy developments
- Status of considerations for additional return measures such as share buybacks alongside the 20% consolidated payout ratio target
Key Financial Highlights
| Item | Value | YoY |
|---|---|---|
| Revenue | JPY 1,376M | +31.5% |
| └ OpenWork | JPY 335M | +8.3% |
| └ OpenWork Recruiting | JPY 995M | +43.5% |
| └ Alternative Data Services | JPY 45M | +4.1% |
| Operating Expenses | JPY 871M | +20.7% |
| Operating Income | JPY 504M | +55.4% |
| Operating Income Margin | 36.7% | +5.7pt |
| Recurring Profit | JPY 511M | +56.6% |
| Quarterly Net Income | JPY 352M | +57.8% |
| EPS | JPY 16.97 | +60.1% |
| Diluted EPS | JPY 16.87 | +59.8% |
The 34.8% full-year operating income progress rate exceeds the prior-year comparable period (Q1 operating income JPY 324M / full-year JPY 1,199M = 27.1%). However, this is primarily attributable to the timing shift of ad spend to H2, and management expects full-year results to land in line with guidance.
Performance By Business Segment
| Segment | Revenue | YoY | Operating Income | YoY | Margin |
|---|---|---|---|---|---|
| Working Data Platform (Company-Wide) | JPY 1,376M | +31.5% | JPY 504M | +55.4% | 36.7% |
- OpenWork Recruiting: Revenue of JPY 995M (+43.5% YoY), approaching JPY 1B for the first time on a quarterly basis. Accelerating growth in the number of hires was the primary driver. Web resume registrations reached 1.75M (+21.4% YoY) and job listings hit 134K (+58.5% YoY), with both supply and demand expanding
- OpenWork: Revenue of JPY 335M (+8.3% YoY), supported by unit price improvements since the year-ago Q1. Users grew to 7.96M (+11.0% YoY) and reviews reached 21.2M (+12.2% YoY), with the platform base continuing to expand
- Alternative Data Services: Revenue of JPY 45M (+4.1% YoY), showing sluggish growth. Neither FIS (financial institutions) nor DAP (corporate) shows signs of acceleration, with the service still representing only 3.3% of total revenue
Progress Rate Versus Full-Year Guidance
Revenue progress of 24.2% against the full-year plan is close to the 25% run-rate benchmark for Q1 of a December fiscal year, indicating a solid start. Operating income progress of 34.8% is elevated but primarily reflects the timing adjustment of ad spend (H2 shift), and management expects results to land in line with full-year guidance. Compared to the prior-year Q1 operating income progress rate of 27.1%, the current level is notably higher, suggesting potential upside from revenue growth effects even if H2 ad spend is executed as planned.
| Account | Value (Q1) | Full-Year Forecast (Standalone) | Progress |
|---|---|---|---|
| Revenue | JPY 1,376M | JPY 5,700M | 24.2% |
| Operating Income | JPY 504M | JPY 1,450M | 34.8% |
| Recurring Profit | JPY 511M | JPY 1,449M | 35.3% |
| Net Income | JPY 352M | JPY 965M | 36.5% |
- The job-change market tends to be most active in Jan–Mar (pre-fiscal-year-end) and Oct–Dec, providing a relatively favorable operating environment in Q1. Q4 (Oct–Dec) also tends to be strong
- Ad spend is expected to ramp up from Q2 onward, driving higher costs; Q1 quarterly profit may represent the year's peak
Changes To Guidance
No revisions to the most recently published guidance. From Q2 onward, consolidated guidance (revenue JPY 6,200M, operating income JPY 1,450M, net income JPY 965M) is expected to become the reference following the start of BNG Partners consolidation.
Commentary On Shareholder Returns
On March 17, 2026, the company announced a change in dividend policy and declared its inaugural dividend. The annual dividend is JPY 9.00/share (JPY 4.50 at Q2-end, JPY 4.50 at year-end), targeting a consolidated payout ratio of approximately 20%. No dividend was paid in the prior fiscal year (FY12/2025). Management determined that growth investment and shareholder returns can now be pursued simultaneously. The shareholder benefit program (digital gift cards, JPY 1,000+/year for holders of 100+ shares for 6+ months) also continues.
Financial Position
The company maintains a virtually debt-free balance sheet with an equity ratio of 84.1%. Cash and deposits exceed JPY 7.4B, providing ample capacity for M&A investment. Shares of affiliates of JPY 96M have been recorded. Note that the full share acquisition of BNG Partners was executed on April 1, 2026, with the acquisition cost undisclosed. The company maintains an ample cash position.
- Key Figures
- Leverage Metrics
| Account | Value | Additional Information |
|---|---|---|
| Cash and Deposits | JPY 7,483M | ▲JPY 150M vs. prior FY-end |
| Total Assets | JPY 8,630M | +JPY 223M vs. prior FY-end |
| Total Current Assets | JPY 8,286M | +JPY 102M vs. prior FY-end |
| └ Accounts Receivable | JPY 633M | +JPY 195M vs. prior FY-end |
| Total Non-Current Assets | JPY 344M | +JPY 121M vs. prior FY-end |
| └ Shares of Affiliates | JPY 96M | Shares of affiliates (BNG acquisition cost undisclosed) |
| Net Assets | JPY 7,261M | +JPY 392M vs. prior FY-end |
| Total Liabilities | JPY 1,369M | ▲JPY 168M vs. prior FY-end |
| └ Contract Liabilities | JPY 808M | +JPY 198M vs. prior FY-end |
| EBITDA | JPY 508M | Operating income JPY 504M + depreciation JPY 3M |
With zero interest-bearing debt, Net Debt/EBITDA, Debt/Equity, and similar metrics are not applicable.
News Released Alongside The Earnings Announcement
None
Major Announcements During The Quarter
- 2026/02/17Student users for the class of 2026 exceeded a record 320K, meaning more than 2 in 3 job-hunting students are registered on OpenWork OpenWork student users reach record 320K
- 2026/03/17Board resolved to acquire all shares of BNG Partners, entering the high-end recruitment agency space. Consolidation begins in April as the company's second M&A transaction Notice Regarding Acquisition of Shares of BNG Partners (Subsidiarization)
- 2026/04/02Absorption merger of PM Club (acquired in December 2025) completed, integrating skill tag data and other assets into OpenWork Post-Merger Legal Disclosure Document (Absorption-Type Merger) (PM Club)
Large-Shareholding Filings / Material Proposals Over The Past Year
- Shinjiro Masui (Founder): 18.94% → 17.88% (2025/08/19) — Held as the company's founder (amendment filing due to 1%+ decrease in ownership ratio)
- Shinjiro Masui (Founder): 17.88% → 16.85% (2026/02/09) — Held as the company's founder (amendment filing due to 1%+ decrease in ownership ratio)
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