Summary
The key item to monitor in 3Q results is the extent of cumulative progress against the company's back-half-weighted full-year guidance of JPY 13B in revenue and JPY 600M in operating income. Revenue achievement stood at just 44.9% through 2Q, implying the company needs JPY 7,154M in H2 (+22.4% vs. H1)—making it critical to confirm whether the expansion trend in contract volume and gross profit per contract is accelerating in 3Q. Following the 2Q print, the company announced a string of project wins from the Ministry of Health, Labour and Welfare (MHLW) and the Ministry of Economy, Trade and Industry (METI), as well as business alliances with sports organizations and regional financial institutions, steadily deepening the recurring revenue base in the Solutions and Regional Revitalization businesses. The focus is on how much earnings leverage the company can demonstrate as a "talent platform enterprise," capitalizing on the network effects of its 96,000+ registered professionals and structural tailwinds from DX and generative AI demand.
Key Points for Next Quarter
| Key Points & Focus | Implications |
|---|---|
Revenue Growth3Q YTD revenue achievement rate vs. full-year guidance of JPY 13B | Achievement rate of 44.9% at 2Q was below 50%. Reaching ~70% on a 3Q YTD basis (~JPY 9.1B) would significantly raise probability of hitting the full-year target |
Margin ImprovementQuarterly trend in gross profit margin | 2Q YTD gross profit margin improved to 26.4% (vs. 25.4% in the year-ago period). Sustaining the 26% range in 3Q is a prerequisite for meeting the operating income plan |
Key KPIsYoY trends in contract volume and gross profit per contract | At 2Q: 862 contracts at JPY 246K per contract. Achieving +111.1% YoY operating income requires acceleration in both KPIs—benchmarks are 900+ contracts and JPY 250K+ per contract |
SG&A ControlYoY trend in SG&A ratio | 2Q YTD SG&A of JPY 1,291M (+7.3% YoY) outpaced revenue growth of +2.2%. Containing the rate of increase is essential for operating leverage to materialize in H2 |
Government ProjectsRevenue recognition timing and scale of MHLW/METI contracted projects | Multiple government project wins were announced after the 2Q print. Need to confirm the timing of revenue contribution from 3Q onward and the impact on margins |
Capital EfficiencyROE improvement trajectory | Full-year net income guidance of JPY 360M against 2Q-end net assets of JPY 1,533M implies ~23% ROE. Monitor alongside dilution impact from the performance-linked share compensation (disposal of 78,900 treasury shares) |
Talent BaseGrowth pace in registered professional talent | Surpassed 96,000 at 2Q-end. The timing of reaching the 100,000 milestone and shifts in the mix toward higher-value AI/DX talent are directly linked to medium-to-long-term competitive advantage |
Key Issues from Previous Results (FY09/2026 2Q)
2Q YTD revenue was JPY 5,846M (+2.2% YoY) and operating income was JPY 253M (+2.0% YoY), securing top- and bottom-line growth, but achievement rates of 44.9% for revenue and 42.2% for operating income fell short of 50% against the full-year plan. Full-year guidance calls for revenue growth of +16.6% and operating income growth of +111.1%, placing the spotlight firmly on the pace of acceleration in H2.
1. Back-Half-Weighted Revenue Plan and Room for Recovery in 3Q
- Previous Quarter:2Q YTD revenue of JPY 5,846M; 44.9% achievement against full-year guidance of JPY 13B. H2 requires JPY 7,154M (+22.4% vs. H1)
- What to Watch This Quarter:Whether 3Q standalone revenue growth exceeds the year-ago period. Commencement of government-contracted projects and a growing pipeline in the Solutions business could serve as catalysts for H2 revenue acceleration
- Key Metrics:3Q YTD revenue as % of full-year guidance (70% as a benchmark), 3Q standalone YoY growth rate
2. Sustainability of Gross Profit Margin Improvement
- Previous Quarter:2Q YTD gross profit margin of 26.4% (vs. 25.4% in the year-ago period, +1.0pt improvement). Gross profit of JPY 1,544M (+6.4% YoY), expanding faster than revenue growth of +2.2%
- What to Watch This Quarter:Whether per-contract gross profit of JPY 246K is being maintained or improved. Impact of consulting services such as "Mirai Digital" and changes in the staffing/dispatch mix on the margin profile
- Key Metrics:3Q YTD gross profit margin (whether 26% range is sustained), YoY change in gross profit per contract
3. SG&A Growth and Operating Leverage
- Previous Quarter:2Q YTD SG&A of JPY 1,291M (+7.3% YoY). SG&A ratio of 22.1% (vs. 21.1% in the year-ago period), up +1.0pt, offsetting the gross margin improvement
- What to Watch This Quarter:Whether hiring and training costs for 60.3 direct sales staff are being recouped through H2 revenue expansion. Improvement in sales productivity (revenue per salesperson) is the key lever
- Key Metrics:3Q YTD SG&A ratio (containing SG&A ratio is essential to achieving 4.6% full-year OPM), revenue per direct salesperson
4. Earnings Contribution from Solutions and Regional Revitalization Businesses
- Previous Quarter:The Regional Revitalization business has partnerships with 126 financial institutions nationwide, 4 government ministries, 31 prefectures, and 104 municipalities. The Solutions business operates three services: "Mira Re-skilling," "Booster," and "Sustainability Management Support"
- What to Watch This Quarter:Timing of when MHLW/METI contracted projects and the newly established "Social Design" business begin contributing to revenue and profit. As the company reports under a single segment, service-level revenue breakdowns are unavailable—requiring inferences from qualitative commentary
- Key Metrics:Order backlog and progress on government-related projects, pace of expansion in enterprise client count (79 companies at 2Q)
5. Financial Position and Shareholder Return Policy
- Previous Quarter:Cash and deposits of JPY 1,571M (+JPY 123M vs. prior FY-end), equity ratio of 43.4% (vs. 42.1% at prior FY-end). Operating CF turned positive at +JPY 123M (vs. -JPY 133M in the year-ago period). No dividend continues
- What to Watch This Quarter:Liquidity levels and M&A/investment policy going forward. The year-ago period saw JPY 149M in investing CF related to M&A; the direction of this quarter's investment strategy warrants attention
- Key Metrics:Amortization pace of goodwill balance of JPY 121M (JPY 15M in 2Q YTD), treasury share acquisition/disposal policy, management commentary on the potential initiation of dividends
Timely Disclosure & Industry Trends
- 2026/06/24Business alliance with Fukushima Firebonds and SEKISUI Challengers — Expansion of "Mira Re-skilling" into the sports business domain. Total alliance partners now at 4, strengthening the platform for cross-industry learning programs. Business alliance agreements signed individually with Fukushima Firebonds and SEKISUI Challengers
- 2026/06/08Awarded MHLW "Model Project for Developing 'Practical Training Opportunities' for Digital Talent Development" — Multi-year project spanning FY2026–2027. Assignment of DX advisors to SMEs nationwide is expected to boost registered talent utilization and provide stable government revenue. Awarded the Ministry of Health, Labour and Welfare's "Model Project for Developing 'Practical Training Opportunities' for Digital Talent Development"
- 2026/06/04Launch of "Social Design" business — A new initiative to provide hands-on support for large enterprises' social impact projects. Targeting 50 projects over 3 years, positioning it as a springboard for expanding enterprise client relationships. Launch of "Social Design" business to support co-creation between large enterprises and local communities
- 2026/06/03Selected for METI's "Career Advancement Support Through Reskilling" program — Providing end-to-end reskilling courses and job placement for professionals seeking regional career opportunities. Combined with GMJ's career transition expertise, this contributes to expanding the Regional Revitalization business's revenue base. Selected for METI's "Career Advancement Support Through Reskilling" program
Previous Quarter Results (FY09/2026 2Q Actuals)
Mirai Works is a platform company operating under the vision of "creating an ecosystem where professional talent can take on challenges." Centered on the professional talent business built around FreeConsultant.jp, the company also operates Regional Revitalization (Skill Shift, Glocal Mission Jobs) and Solutions businesses. Its competitive moat is anchored by 96,000+ registered professionals and partnerships with 126 regional financial institutions, with growing DX and generative AI demand as key business opportunities. While 2Q YTD delivered top- and bottom-line growth, achievement rates of 44.9% for revenue and 42.2% for operating income underscore the back-half-weighted structure, making acceleration from 3Q onward a prerequisite for achieving the full-year plan.
| Item | Amount | YoY | Vs. Guidance | Notes |
|---|---|---|---|---|
| Revenue | JPY 5,846M | +2.2% | 44.9% Achievement | Deceleration from +12.2% growth in the year-ago period |
| Operating Income | JPY 253M | +2.0% | 42.2% Achievement | SG&A increase (+7.3%) weighed on profit |
| Recurring Profit | JPY 256M | +2.0% | 42.7% Achievement | Non-operating income flat at JPY 3M |
| Net Income | JPY 175M | +13.6% | 48.8% Achievement | Benefited from deferred tax adjustments of -JPY 25M |
| EPS | JPY 33.81 | +16.1% | - | Weighted-average shares outstanding: 5,203,140 |
Guidance Achievement Rate: Revenue 44.9%, Operating Income 42.2% (our estimate. Year-ago period achievement rates were 51.3% for revenue and 87.3% for operating income, based on our estimates assuming prior-year full-year actuals of JPY 11,148M in revenue and JPY 284M in operating income)
Company Information
- Company Name:Mirai Works Inc.
- Ticker:6563
- Listed Market:Tokyo Stock Exchange Growth Market
- Fiscal Year-End:September
- Core Business:Operates a professional talent matching platform (FreeConsultant.jp) as its core business, complemented by Regional Revitalization (Skill Shift, Glocal Mission Jobs) and Solutions businesses (Mira Re-skilling, Booster, Sustainability Management Support)
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