JSS CORPORATION
6074・Standard Market・Services
Business
JSS Co., Ltd. is a swimming school operator founded in 1976, guided by its corporate philosophy of "contributing to health promotion through water." As of the end of March 2026, the company operates a total of 84 locations spanning from Hokkaido to Okinawa, comprising 64 company-operated locations (61 swimming, 1 fitness, 2 tennis) and 20 contracted locations. Its primary customer base is child members (accounting for 88.4% of membership composition), with the company serving a broad age range from infants to seniors. It is the only listed company among swimming school operators, listed on the Standard Market of the Tokyo Stock Exchange and the Main Market of the Nagoya Stock Exchange. The company has entered into a business and capital alliance with Nippon Television Holdings, and is also advancing collaboration with Tipness, a wholly owned subsidiary of Nippon Television Holdings.
Business Model
The company has a stable, membership-based revenue structure in which membership fees account for approximately 80% of total sales. At company-operated locations, monthly membership fees from members are the main source of income, while at contracted locations, the company receives commission fees from facility owners, either sales-linked or fixed. In addition, the company earns income from sales of sporting goods and other products, planned extracurricular activities (ski schools, camps, etc.), and facility rentals. In FY2026 (ending March 2026), the sales composition was as follows: Swimming School Operations revenue of ¥7,918 million (92.7% of total), product sales of ¥596 million (7.0%), and other revenue of ¥27 million (0.3%).
Company Strengths
The company explicitly positions itself in its management strategy as the only listed company operating swimming schools in the industry, using this status as a foundation for securing high-quality personnel through the development of an attractive working environment and enhanced training systems for job seekers and employees. In addition, its credibility and name recognition as a listed company work advantageously in M&A negotiations.
The company possesses highly specialized coaching programs based on various manuals and textbooks, including coaching manuals and aquatic health exercise manuals, accumulated over nearly 50 years since its founding. It has a track record of producing Olympic athletes at every Olympic Games, and multiple athletes placed at the 101st Japan Swimming Championships. This coaching know-how is a source of competitive advantage in the expansion of contracted business locations and in winning Contracted Swimming Classes (for Schools).
By combining company-operated locations (64 sites) with contracted locations (20 sites), which generate contracted fee income without the company owning facilities, the business structure allows for expansion in scale while limiting capital expenditure risk. Even for company-operated locations, the company adopts a compact-type facility with approximately 1,000 members as its standard model, achieving low-cost operations.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal periods, revenue has shown a moderate upward trend: ¥7,550 million (FY2022) → ¥8,073 million (FY2023) → ¥8,132 million (FY2024) → ¥8,382 million (FY2025) → ¥8,541 million (FY2026). Operating profit peaked at ¥425 million in FY2023, then declined to ¥252 million in FY2025, before recovering sharply to ¥433 million in FY2026. The main driver was a reduction in cost of sales (down ¥58 million year on year), reflecting the effect of membership fee revisions and cost efficiency improvements. Meanwhile, membership stood at 76,880, down 8.9% year on year, as headwinds from the declining birthrate and diversifying consumer preferences continue to weigh on the external environment. For FY2027 (ending March 2027), the company forecasts revenue of ¥8,668 million and operating profit of ¥465 million.
Growth Strategy
Four pillars: strengthening M&A, continuation of the membership fee revision effect, expansion of contracted school swimming classes, and deepening collaboration with Tipness.
By strengthening the M&A strategy and focusing on further area expansion, the company aims to accelerate community-based youth development and sports promotion while pursuing business expansion and securing profitability. Improvement in financial condition (reduction in the interest-bearing debt ratio) is gradually restoring capacity to execute M&A.
Against the backdrop of nationwide aging of school pool facilities and a shortage of instructors, outsourcing of swimming classes to the private sector is increasing. The company is promoting the acceptance of contracted swimming class operations at elementary and junior high schools by leveraging its specialized swimming instruction know-how. The policy is to proactively respond to bid requests and instructor dispatch requests from municipalities. The aging of public school pools represents an external tailwind in the market environment.
The company continues to promote joint hosting of clothed swimming experience events (held in May and June 2025), provision of the online fitness service "Torucha" to members, establishment of the JSS Kids Family Plan, and cost reductions through joint purchasing of merchandise and equipment. Collaboration meetings and subcommittees are held regularly, with further measures being prepared.
The company continues to implement member acquisition measures such as the referral campaign "Tsunagaro JSS" and one-day experience events. The effect of the price increase from the membership fee revision implemented in June 2025 is believed to have contributed to the improvement in cost of sales for FY2026 (ending March 2026), and this effect is expected to continue into FY2027 (ending March 2027). In response to the decline in membership numbers (down 8.9% year on year), the policy is to implement measures that capture changes in member needs.
Last updated: July 19, 2026