Insource Co.,Ltd.
6200・Prime Market・Services
Business
Insource Co., Ltd. is a corporate education specialist company founded in 2002. It operates four businesses—the Instructor-Dispatch Training Business, the Open Course Business, the IT Services Business, and Other Businesses—with private companies, government agencies, and local governments as its main customers. Nearly all training programs are developed in-house, and both in-person and online formats are available. The company also provides HR tech services centered on the LMS "Leaf," and in FY2025 (ended September 2025), the annual number of training sessions conducted reached 24,654, with 159,328 participants in open courses. The company is listed on the Prime Market of the Tokyo Stock Exchange. Through a group structure of 9 companies, it provides seamless services ranging from human resource development to organizational consulting.
Business Model
The core Instructor-Dispatch Training Business is composed of usage-based billing according to the number of training sessions, while the Open Course Business consists of tuition revenue on a per-participant basis. In the IT Services Business, LMS "Leaf" (IT Services Business) is offered on a monthly subscription basis (ASP/cloud), building a stable recurring revenue base with ARR of ¥1,457 million. Through the use of proprietary content and outsourced instructors, variable costs are kept in check, and the operating profit margin reached 41.2% in FY2025 (ending September 2025).
Company Strengths
For FY2025 (ending September 2025), the operating margin was 41.2% (up 1.6pt year on year), with net sales of ¥14,511 million, operating profit of ¥5,979 million, and net income of ¥4,130 million, all renewing record highs. The company has achieved five consecutive years of revenue and profit growth since FY2021 (ending September 2021), with a net sales CAGR of approximately 18%.
The number of paying organizations using LMS "Leaf" reached 860 organizations (up 16.1% from the previous fiscal year-end), and the number of active users exceeded 5 million (up 23.3% year on year). ARR continued to grow strongly, reaching ¥1,457 million (up 24.2% from the previous fiscal year-end). "Leaf LGWAN Learning," designed for local governments, is Japan's only LGWAN-compatible LMS and is also expanding adoption among central government ministries.
Nearly all training programs are developed in-house. In FY2025 (ending September 2025), the number of training sessions conducted reached 24,654, and the number of Open Course Business attendees totaled 159,328. The company operates branches and offices nationwide from Hokkaido to Kyushu, and continues to strengthen its customer acquisition base for the Open Course Business through the opening of new seminar rooms and expansion of floor space in Yurakucho, Shinjuku, and Osaka.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years expanded approximately 1.9-fold from ¥7,501 million (FY2021) to ¥14,511 million (FY2025), achieving five consecutive years of increased revenue and profit. However, in the first half of FY2026 (ending September 2026) (October 2025 to March 2026), while revenue increased to ¥7,584 million (up 8.0% year-on-year), total personnel expenses rose 16.2% year-on-year, causing operating profit to remain effectively flat at ¥2,951 million (up 0.3% year-on-year). Revenue growth also decelerated from 16.6% in the same period of the previous year to 8.0%. The full-year forecast was revised downward from the figures announced in November 2025, to revenue of ¥16,000 million (up 10.3% year-on-year) and operating profit of ¥6,380 million (up 6.7% year-on-year). While external tailwinds such as growing momentum in human capital management and expanding demand for DX education continue, pressure from recruitment and wage increases is constraining profit growth.
Growth Strategy
Aiming for a CAGR of 17.3% and net sales of ¥23,400 million in FY2028 (ending September 2028) by capturing the generative AI/DX education market and expanding LMS operations
The Group is implementing full-scale price revisions in line with education themes and market trends, while promoting bundled proposals combining multiple services and products across the entire Group. In the first half of FY2026 (ending September 2026), the average customer unit price per organization increased by ¥15.3 thousand year on year, contributing to sales growth.
The company continues to expand the number of paying organizations using Leaf, a monthly subscription-based SaaS, thereby strengthening its recurring revenue base. As of the end of the first half of FY2026 (ending September 2026), ARR reached ¥1,460 million (up 29.3% year on year) and the number of paying organizations reached 887 (up 11.4% from the previous fiscal year-end). The decline in customization projects is being offset by the accumulation of monthly usage fees.
As new services to comprehensively support organizations' use of generative AI, the company is developing and marketing the AI application "AI-OJT," the addition of generative AI functions to the LMS "Leaf," and generative AI assessments, among others. In parallel, the company is also promoting internal productivity improvements through the implementation of a proposal creation function in its core system "Plants."
The company is promoting its medium-term management plan targeting net sales of ¥23,400 million and a CAGR of 17.3% in FY2028 (ending September 2028). The current full-year forecast for FY2026 (ending September 2026) stands at ¥16,000 million (up 10.3% year on year), meaning that an acceleration of growth in the latter half of the plan period will be necessary to achieve the target.
Last updated: July 17, 2026