Livesense Inc.

Business Details

Starting from the first quarter of FY2026 (ending December 2026), the company changed its segmentation from a single segment, the "Internet Media Business," to two segments: "Human Resources Services" and "Real Estate Services." Human Resources Services operates part-time job listing and job-change media, while Real Estate Services operates real estate information and buy-and-resell businesses. In line with the medium-term management plan, the company is pursuing a policy of strengthening and expanding the human resources and real estate domains, advancing the enhancement of features and content by combining AI with each business's assets.

Recent Overview

While the Mach Baito policy shift led to a significant revenue decline, growth at Tenshoku Kaigi and Tenshoku Draft along with cost reductions narrowed the loss

In the first quarter of FY2026 (ending December 2026), consolidated revenue declined significantly to ¥981 million (down 37.8% year on year), due to Mach Baito's policy shift toward emphasizing profitability (changes to terms and scaling back of low-profitability transactions) and the absence of settlements in IESHIL's buy-and-resell business. On the other hand, advertising expenses were reduced to ¥201 million (down 59.6% year on year), and revenue growth at Tenshoku Kaigi (+15.3%) and Tenshoku Draft (+29.2%) also contributed, narrowing the operating loss to -¥51 million (versus -¥100 million in the prior-year period). Operating profit in the Human Resources Services segment improved to ¥219 million (up 41.5% year on year). Additionally, starting from this first quarter, the segment classification was changed to two categories: "Human Resources Services" and "Real Estate Services." License income associated with a business transfer, which had been recorded through the interim period of FY2025 (ending December 2025), disappeared, resulting in a significant decrease in non-operating income.

Key Products

Growth Drivers

• Continued revenue growth at Tenshoku Kaigi driven by new customer acquisition and expanded budgets from existing customers (revenue up 15.3% year on year in Q1 FY2026 ending December 2026)
• Improved hiring decision rates and increased user numbers at Tenshoku Draft through expansion of AI real-time feedback functionality (revenue up 29.2% year on year)
• Recovery in Human Resources Services segment profit margin due to Mach Baito's profitability improvement measures (completion of scaling back low-profitability transactions)
• Strengthened competitiveness through expansion of features and content combining AI with each business's assets (e.g., Tenshoku Kaigi's Q&A function, Tenshoku Draft's resume feedback)
• Strengthening and expansion of the human resources and real estate domains and new business development including M&A, based on the medium-term management plan

Risks

• Risk that the group's overall revenue scale recovery will be delayed, as revenue for the final year of the medium-term management plan (FY2027) is expected to fall short of the target due to Mach Baito's business policy shift
• Risk that Real Estate Services segment performance will fluctuate significantly on a quarterly basis due to high uncertainty in settlement timing in IESHIL's buy-and-resell business
• Complete disappearance of the temporary boost to ordinary income previously provided by license income associated with a business transfer (recorded through the interim period of FY2025 ending December 2025)
• Continued fixed cost burden risk due to elevated personnel expenses remaining high (¥511 million in Q1 FY2026 ending December 2026, down only 3.7% year on year and still at a high level)
• High uncertainty regarding second-half performance outlook, as only the cumulative H1 forecast has been disclosed due to difficulty in producing a reasonable full-year earnings forecast
• Risk of continued decline in revenue per project due to competitor trends in the part-time job listing market