ARCHITECTS STUDIO JAPAN INC.
6085・Growth Market・Services
Housing-Related Business
Housing-related platform business based on the ASJ Architect Network
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (Q1 cumulative, FY2027 ending February 2027) | ¥69 million | – (not comparable to prior period due to change in segment classification) | ↓ |
| Segment profit/loss (Q1 cumulative, FY2027 ending February 2027) | -¥30 million | – (not comparable to prior period due to change in segment classification) | ↓ |
| Number of studios (current) | 67 locations | 201 locations (peak in 2014) | ↓ |
Business Details
A platform business that leverages a nationwide network of studios (201 at peak in 2014, now 67) and registered architects to provide "home building with architects" through the franchising of construction companies. Revenue sources include construction contracts, architectural design and supervision outsourcing contracts, contract royalties, and marketing revenue. From FY2027 (ending February 2027), the segment name was renamed from the former "Housing-Related Business" etc. to "Architect Proposal Business," and the company is transitioning to a new contract format under which all services can be freely used by affiliated construction companies.
Recent Overview
In the first quarter under the new segment structure, revenue was ¥69 million and segment loss was ¥30 million due to order delays
In the first quarter of FY2027 (ending February 2027) (March to May 2026), the Architect Proposal Business recorded revenue of ¥69 million and a segment loss of ¥30 million. The main causes were delays in construction contracts and architectural design/supervision outsourcing contracts, and a decline in contract royalty revenue due to an increase in withdrawing studios. This is right after the start of the new segment structure, and order delays have occurred during the organizational transition period, but management judges that this can be recovered within the current fiscal year. The studio contract format has been changed to allow free use of all services, and the company is promoting maximization of affiliation willingness and revenue stabilization.
Key Products
Growth Drivers
- Maximizing willingness to join as studios and recovering the number of affiliated studios (target of 150 locations by the end of FY2030 (ending February 2030)) by changing the studio contract format to a free-use model for all services
- Activating the network through business alliances with external housing-related companies and recruitment of affiliated studios for warehouse construction
- Expansion of business alliances with housing sales companies and proposals for Proto Bank Station contracts in the PROTO BANK Business
- Increasing academy membership and securing future royalties through events and seminars such as nationwide simultaneous remodeling exhibitions and architect matching consultation sessions
- Improving profit margins by incorporating environment-related products (such as Corrugate architecture) into the Architect Proposal Business
Risks
- Market contraction due to the continued decline in new housing starts (711,171 units in FY2025, down 12.9% year on year)
- Increased construction costs due to rising material prices and labor costs, and declining housing purchase sentiment due to rising mortgage interest rates
- Decline in royalty income due to the continued increase in withdrawing studios (currently 67 locations, about one-third of the peak)
- Risk of delayed orders during the transition period to the new segment structure and persistently high SG&A expenses (¥241 million in Q1)
- Material uncertainty regarding going concern assumptions (continued negative net worth, operating losses, and negative operating cash flow)
Last updated: July 10, 2026