TSUNAGU GROUP HOLDINGS Inc.

Business Details

Provides comprehensive support for recruitment activities centered on part-time and temporary staff for major retail, food service, manufacturing, logistics, and medical industry clients nationwide. Consists of three areas: the RPO Service area (recruitment outsourcing and consulting), the DX Recruiting area (owned media customer acquisition via Findin), and the Segment Media area (job media for spot work and regular work). Utilizing the big data platform 'TSUNAgram', the segment provides one-stop services from selecting the optimal recruitment method to business outsourcing.

Recent Overview

Despite the revenue decline, segment operating profit rose 3.9% year-on-year on improved gross margin

In the first half of FY2026 (ending March 2026) (October 2025 to March 2026), the Human Capital Business posted revenue of ¥6,673 million (down 6.8% year-on-year), a decrease. While the RPO Service area contracted significantly to ¥2,411 million (down 20.7% year-on-year) due to a decline in paid media handling volume and other factors, the flagship DX Recruiting area (Findin) maintained high growth at ¥2,282 million (up 24.1% year-on-year). Gross margin improved due to the rising proportion of owned media utilization, and segment operating profit was ¥954 million (up 3.9% year-on-year), with operating margin at 14.3% (up 1.4 percentage points year-on-year). Note that, starting this interim period, some businesses previously included in the Staffing Business have been transferred to the Human Capital Business following the absorption-type company split of the wholly owned subsidiary Tsunagu Global Agent.

Key Products

Growth Drivers

• Expanding demand for Findin due to accelerating shift of recruitment budgets from paid media to owned media (company recruitment web pages) (H1 FY2026, ending March 2026: up 24.1% year-on-year)
• Continued high labor demand centered on major companies and increasing recruitment competition driving greater need for recruitment consulting
• Structural improvement in gross margin due to rising proportion of owned media utilization (segment operating margin improved to 14.3%)
• Expansion of recruitment support areas into the manufacturing, logistics, and medical/nursing care industries
• Improved profit margin through cost structure reforms (optimization of cost of sales and SG&A expenses)

Risks

• Structural decline in revenue in the RPO Service area, which depends on paid media (traditional job advertisements) (H1 FY2026, ending March 2026: down 20.7% year-on-year)
• Significant contraction in the business outsourcing area (H1 FY2026, ending March 2026: down 31.3% year-on-year), creating downward pressure on overall revenue
• Sensitivity of the recruitment market to economic conditions: risk of reduced demand due to companies curbing hiring during economic downturns
• Rise of DX recruiting and owned-media customer acquisition services from competitors
• Risk of impairment of goodwill and customer-related assets (customer-related asset balance: ¥376 million as of end of March 2026)