WASEDA GAKUSHUKENKYUKAI CO.,LTD.
5869・Standard Market・Services
Business
Waseda Gakushu Kenkyukai Co., Ltd. is a cram school operator that opened
Business Model
The main revenue source is tuition fees (monthly fees and course fees) from students. By carefully recruiting and training full-time teachers nationwide and consolidating them into large-scale suburban classrooms of 150-200 tsubo, the company achieves an average enrollment of 519 students per classroom (approximately 4.6 times the industry average of 113 students). By locating in suburban areas away from station fronts, the company keeps land and rent costs down while achieving a high operating margin of 21.4% (target level: 18.0%) through strong customer-drawing power. The company employs a growth model that combines opening new classrooms with expanding enrollment at existing classrooms.
Company Strengths
The average number of enrolled students per school in the Seminar Division is 519, approximately 4.6 times the industry average of 113 shown in the Ministry of Economy, Trade and Industry's "Current Survey of Selected Service Industries" (December 2024). Consolidation into large suburban-type schools with full parking facilities has enabled wide-area student recruitment, achieving both improved instructional efficiency and fixed cost control.
The operating margin for FY2025 (ending March 2025) was 21.4%, exceeding the company's own target level of 18.0% by 3.4 percentage points. Profitability is supported by suppressed land and rent costs due to suburban locations and economies of scale from strong student recruitment capability, and although it declined slightly from FY2024 (ending March 2024) (22.5%), it remains at a high level.
In addition to rigorous nationwide selection through written examinations and interviews, the company implements a training program lasting from 2 months to 1 year after joining. Lecture recording cameras are installed in all classrooms, with head office reviewing and providing guidance on lesson content, and the company mandates that all teachers regularly submit lesson videos and holds instructional skill improvement contests for younger teachers, aiming to standardize lesson quality company-wide.
ENVALITH's Perspective
Performance Trend
For FY2026 (ending May 2026, April 1, 2025 to May 31, 2026, a 14-month irregular fiscal period), net sales were ¥7,951 million, operating profit was ¥1,321 million, ordinary profit was ¥1,325 million, and net income was ¥919 million. Compared to the previous period (12 months), net sales increased, but operating profit and net income decreased. The main causes of the profit decline were: (1) the irregular fiscal period resulted in the low-demand months (April and May) being counted twice; (2) a temporary increase in costs associated with the opening of five new locations; and (3) upfront investments such as strengthened web advertising, relocation of the head office, and construction of new company housing. Cost of sales was ¥4,942 million (cost ratio of 62.2%), and selling, general and administrative expenses increased to ¥1,687 million. By division, net sales were ¥5,967 million for the Seminar Division, ¥1,299 million for the High School Division, and ¥684 million for the First Kobetsu Division. For FY2027 (a normal 12-month period), the company forecasts net sales of ¥7,468 million, operating profit of ¥1,500 million, and net income of ¥1,044 million, anticipating a recovery in profit margins.
Growth Strategy
Accelerated new store openings centered on Saitama and Gunma prefectures, together with strengthened recruitment and talent development systems
In FY2026 (ending May 2026), the company opened four Seminar Division schools (Kuki, Kanuma, Kitaurawa, and Toda) and one First Kobetsu Division classroom (Takasaki), bringing the total number of locations to 66 at fiscal year-end. In FY2027 (ending May 2027), the company plans to open three new locations (Higashikawaguchi, Kazo, and Fujioka), continuing area-based expansion in the Saitama and Gunma regions.
In addition to conventional customer acquisition methods, the company enhanced web advertising and renewed its website during FY2026 (ending May 2026). This is positioned as a measure to diversify new student acquisition channels through digital marketing, supporting the expansion of student numbers accompanying the acceleration of new store openings.
In December 2025, the company relocated its head office with the aim of expanding its headquarters organization and strengthening recruitment capabilities. In March 2026, the company constructed new employee housing on company-owned land in Ota City, Gunma Prefecture, establishing a system to welcome new employees. This functions as fundamental infrastructure supporting the recruitment and retention of full-time teaching staff, which is essential for accelerating store openings.
Against the backdrop of growing demand for individualized instruction, the company continues to expand the number of classrooms in the First Kobetsu Division. In FY2026 (ending May 2026), the company opened the Takasaki classroom, recording an average of 901 students during the period and revenue of ¥684 million. The company positions the expansion of the individualized instruction division as one of its growth drivers in future store opening plans.
Last updated: July 17, 2026