Mirai Works Inc. 3Q Earnings Flash
Core professional talent business posted top- and bottom-line growth, but full-year guidance revised downward due to shortfalls in sales headcount and contract volumes; monitoring the impact of JPY 113M goodwill impairment on Greenroom
Key Positives From The Results
Gross profit margin improved to 26.0% (+0.8pt YoY), while the Professional Talent business delivered operating income of JPY 117M after allocation of shared costs (+57.3% YoY), meaningfully lifting profitability from the prior-year period. Registered professional talent surpassing 98,000 individuals also signals continued expansion of the talent base, bolstering medium- to long-term competitive positioning.
- Revenue of JPY 8,649M (+3.3% YoY) and operating income of JPY 241M (+5.8% YoY), maintaining top- and bottom-line growth
- Gross profit margin improved to 26.0% (+0.8pt YoY); gross profit per contract of JPY 248K reached a record high
- Direct sales headcount rose to 62.9 (+6.7 YoY), sustaining an upward trajectory; mid-career hires exceeded 200% of the prior-year level
- Regional Revitalization business posted QoQ revenue of JPY 104M (+41.0% YoY), with operating losses also narrowing
- Cash and deposits of JPY 1,764M (+JPY 316M vs. prior fiscal year-end), bolstering liquidity reserves
Key Concerns From The Results
Full-year guidance was revised downward: revenue from JPY 13,000M to JPY 11,650M (−10.4%), operating income from JPY 600M to JPY 370M (−38.3%), and net income from JPY 360M to JPY 144M (−60.0%). The primary driver is the lag in securing and ramping sales personnel in the core business, making it imperative to rebuild growth momentum.
- Contract volumes tracking to ~10,000 vs. the initial plan of 11,400; sales headcount also falling short at an estimated 61.5 vs. the planned 65
- Contracts per salesperson per month declined to 13.1, down from 14.2 in the year-ago period and 14.3 in the prior quarter
- Recognized JPY 113M in goodwill impairment on Greenroom, reflecting erosion of excess earning power due to weakening ESG advertising demand
- Solutions business saw operating losses widen (plan: −JPY 70M → revised estimate: −JPY 145M), with a pronounced SG&A overrun
- EBITDA of JPY 168M (−17.4% YoY); 3Q standalone posted a deficit of −JPY 111M
- FY09/2027 business plan also revised downward: revenue from JPY 16,000M to JPY 12,500M, operating income from JPY 1,000M to JPY 600M
Focus Areas / Items To Monitor Going Forward
- The degree of recovery in contract volumes and sales headcount in the Professional Talent business during 4Q (Jul–Sep 2026). The revised plan assumes a 4Q rebound from the seasonal 3Q dip associated with fiscal year-end contract expirations in March
- Timeline for the 23 new graduates (FY26 hires) to become fully productive. The medium-term plan targets 90.0 sales FTEs by FY28, but delays in development pose a key risk to its credibility
- Future direction of the Greenroom business. Post-impairment decisions on continuation vs. exit, and concrete measures for portfolio rationalization within the broader Solutions business
- Structural factors behind the decline in contracts per salesperson to 13.1, and quantitative expectations for the impact of remedial measures
- Definition of "fully productive" for new graduates and junior staff, and actual average time-to-productivity
- Attrition rate and countermeasures, given that net headcount additions remained marginal despite mid-career hiring exceeding 200% YoY
- Future positioning of the Greenroom business (downsizing, exit, or business pivot)
- Breakdown of the SG&A overrun in the Solutions business (+JPY 75M vs. plan) and measures to prevent recurrence
- Background behind the QoQ decline in large enterprise client count in 3Q standalone (79 in 2Q → 77 in 3Q)
- Specific services under consideration for downsizing or exit as part of "portfolio focus and rationalization"
- Concrete KPIs for sales process efficiencies driven by AI adoption
- Basis for the 13.7 contracts-per-person assumption underpinning the FY28 target of 14,800 contracts
- Expected timeline for the Regional Revitalization and Solutions businesses to reach breakeven under the FY09/2027 plan
Key Financial Highlights
| Item | Value | YoY |
|---|---|---|
| Revenue | JPY 8,649M | +3.3% |
| Cost of Goods Sold | JPY 6,404M | +2.3% |
| Gross Profit | JPY 2,245M | +6.5% |
| SG&A | JPY 2,003M | +6.5% |
| └ Personnel Expenses | JPY 1,499M | +19.5% |
| └ Other | JPY 504M | −19.4% |
| Operating Income | JPY 241M | +5.8% |
| Recurring Profit | JPY 246M | +5.5% |
| Extraordinary Loss (Impairment) | JPY 113M | +22.0% |
| Net Income Attributable to Owners of Parent Company (Quarterly) | JPY 48M | +21.1% |
| EPS | JPY 9.25 | +23.8% |
| EBITDA | JPY 168M | −17.4% |
| Gross Profit Margin | 26.0% | +0.8pt |
| Operating Income Margin | 2.8% | +0.1pt |
Personnel expenses within SG&A rose +19.5% YoY, with upfront investment in sales force expansion weighing on profitability, while other SG&A declined −19.4%, reflecting efficiency gains. Despite the JPY 113M extraordinary loss from the Greenroom goodwill impairment, net income still grew +21.1% YoY, as the tax burden was lighter than the prior-year period (deferred tax adjustment of −JPY 7M) relative to the JPY 93M impairment booked a year ago.
Performance By Business Segment
The group operates as a single reportable segment: Professional Talent. However, the earnings presentation materials provide breakdowns by business line (Professional Talent, Regional Revitalization, and Solutions). The Professional Talent business accounts for approximately 93% of consolidated revenue and serves as the core profit driver, while Regional Revitalization and Solutions remain in the early stages of monetization.
Segment Performance Table (3Q Standalone, After Allocation Of Shared Costs)
| Segment | Revenue | YoY | Operating Income | YoY | Margin |
|---|---|---|---|---|---|
| Professional Talent | JPY 2,652M | +4.8% | JPY 117M | +57.3% | 4.4% |
| Regional Revitalization | JPY 104M | +41.0% | −JPY 51M | - | - |
| Solutions | JPY 47M | +2.8% | −JPY 69M | - | - |
- Professional Talent (3Q Cumulative): Revenue of JPY 8,033M (+4.1% YoY), operating income after shared cost allocation of JPY 455M (+16.7% YoY). Large enterprise client count reached 77, exceeding the prior-year level of 76, while gross profit per contract remained elevated at JPY 248K
- Regional Revitalization (3Q Cumulative): Revenue of JPY 390M (+46.6% YoY). Partnerships expanded to 130 financial institutions nationwide and 107 municipalities across 31 prefectures and 4 central government ministries, driving increased public-sector project wins
- Solutions (3Q Cumulative): Despite revenue of JPY 225M (+31.6% YoY), the operating loss widened to −JPY 101M. Personnel costs exceeded plan due to quality assurance requirements on contracted projects. The Greenroom business deteriorated amid weakening advertising demand for ESG-related content following shifts in the Trump administration's ESG policy stance, resulting in full impairment of goodwill (JPY 113M)
Progress Versus Full-Year Guidance
3Q cumulative progress rates of 74.2% for revenue and 65.2% for operating income represent reasonable levels against the revised full-year plan. However, against the original guidance, operating income progress stands at just 40.3%, implying that 4Q standalone must deliver JPY 128M in operating income (equivalent to 53% of the 3Q cumulative total). This would require materially exceeding the prior-year 4Q operating income of JPY 55M, making a recovery in Professional Talent contract volumes essential for plan achievement.
| Item | Value (3Q Cumulative) | Full-Year Forecast (Revised) | Progress Rate |
|---|---|---|---|
| Revenue | JPY 8,649M | JPY 11,650M | 74.2% |
| Operating Income | JPY 241M | JPY 370M | 65.2% |
| Recurring Profit | JPY 246M | JPY 370M | 66.5% |
| Net Income | JPY 48M | JPY 144M | 33.5% |
- Contract terminations concentrate around the end of March, causing contract volumes to decline QoQ in 3Q (Apr–Jun)
- Historical patterns show a recovery in 4Q (Jul–Sep) driven by new contract acquisitions
Changes To Guidance
On August 14, 2026, the company announced a downward revision to full-year consolidated guidance. The primary drivers are the Professional Talent business missing contract volume and sales headcount targets, deteriorating profitability in the Solutions business, and the Greenroom goodwill impairment.
- Revenue: JPY 13,000M → JPY 11,650M (−10.4%)
- Operating Income: JPY 600M → JPY 370M (−38.3%)
- Recurring Profit: JPY 600M → JPY 370M (−38.3%)
- Net Income: JPY 360M → JPY 144M (−60.0%)
- Revision Rationale: ① Professional Talent contract volumes diverging from plan (11,400 → est. 10,000), driven by sales headcount shortfall (65 → 61.5) and delays in new graduate ramp-up; ② SG&A overrun in Solutions business (+JPY 75M vs. plan); ③ JPY 113M goodwill impairment on Greenroom
Commentary On Shareholder Returns
No change to the dividend forecast. The company plans to maintain zero dividends (no year-end dividend of JPY 0.00) for FY09/2026.
Financial Position
The company maintains a debt-free balance sheet, with an equity ratio of 42.9% (+0.8pt vs. prior fiscal year-end), indicating a stable financial foundation. Cash and deposits increased by JPY 316M from the prior fiscal year-end, enhancing liquidity reserves. The full write-off of JPY 136M in goodwill through impairment resulted in a JPY 109M reduction in non-current assets.
- Key Figures
- Leverage Metrics
| Item | Value | Additional Information |
|---|---|---|
| Cash and Deposits | JPY 1,764M | +21.8% vs. prior FY-end |
| Total Assets | JPY 3,278M | +5.6% vs. prior FY-end |
| └ Total Current Assets | JPY 3,032M | +10.3% vs. prior FY-end |
| └ Total Non-Current Assets | JPY 245M | −30.9% vs. prior FY-end |
| Accounts Receivable and Contract Assets | JPY 1,208M | −3.8% vs. prior FY-end |
| Total Liabilities | JPY 1,872M | +4.1% vs. prior FY-end |
| └ Accounts Payable | JPY 1,449M | +4.2% vs. prior FY-end |
| Net Assets | JPY 1,406M | +7.6% vs. prior FY-end |
| Equity Ratio | 42.9% | +0.8pt vs. prior FY-end |
| EBITDA | JPY 168M | Pre-tax net income JPY 132M + depreciation JPY 11M + goodwill amortization JPY 22M (company-disclosed basis includes deposit amortization, etc.) |
News Released Alongside The Earnings Announcement
- 2026/08/13Signed a business alliance agreement with Yonezawa Shinkin Bank in Yonezawa City, Yamagata Prefecture. The partnership will promote resolution of regional enterprise talent challenges through the side-job matching platform "Skill Shift" Business alliance with Yonezawa Shinkin Bank in Yonezawa City, Yamagata Prefecture — Promoting utilization of urban side-job professionals to revitalize regional economies
Major Announcements During The Quarter
- 2026/06/04Launched the "Social Design Business," providing end-to-end support for large enterprises' social issue resolution projects from planning through social implementation. Targeting 50 projects supported over three years Launch of "Social Design Business" to support co-creation between large enterprises and regional communities
- 2026/06/08Awarded the Ministry of Health, Labour and Welfare's FY2026–2027 "'Practical Field' Development Model Project for Digital Human Resource Development." The project assigns DX advisors to SMEs and mid-tier companies nationwide to support talent development Awarded the Ministry of Health, Labour and Welfare's "Practical Field Development Model Project for Digital Human Resource Development"
- 2026/07/15Commenced feasibility study for commercializing a "Professional Talent Skill Certification Platform" leveraging digital certificates for career history and skills verification. PoC underway in the freelance consultant space Commenced study on commercializing a "Professional Talent Skill Certification Platform" utilizing digital certificates for career history and skills
- 2026/07/28Participated as a PwC Japan alliance partner in the Ministry of Economy, Trade and Industry Kanto Bureau's "Survey and Analysis for Supporting Regional SME Talent Acquisition." Deploying side-job and dual-employment matching across the greater Kanto region Participation in FY2026 "Survey and Analysis for Supporting Regional SME Talent Acquisition" by METI Kanto Bureau
Large-Shareholding Filings / Material Proposals Over The Past Year
- Yoshiharu Okamoto (Representative Director & President): 52.36% → 51.22% (filed 2026/06/05) — Change report triggered by a decrease of 1% or more in shareholding ratio; held as a stable shareholder
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