Alue co., Ltd.
7043・Growth Market・Services
Human Resource Development Business
A single reportable segment covering both domestic and overseas corporate human resource development
| Period | Current | Previous | Change |
|---|---|---|---|
| Consolidated Revenue (Q1 cumulative) | ¥606 million | ¥621 million (same period prior year) | ↓ |
| Operating Loss (Q1 cumulative) | -¥121 million | -¥127 million (same period prior year) | ↑ |
| Ordinary Loss (Q1 cumulative) | -¥120 million | -¥120 million (same period prior year) | — |
| Quarterly Net Loss Attributable to Owners of Parent (Q1 cumulative) | -¥91 million | -¥130 million (same period prior year) | ↑ |
| Gross Profit (Q1 cumulative) | ¥332 million | ¥341 million (same period prior year) | ↓ |
| SG&A Expenses (Q1 cumulative) | ¥454 million | ¥468 million (same period prior year) | ↓ |
| Corporate Education Revenue (Q1 cumulative) | ¥452 million | Down 8.5% year-on-year | ↓ |
| etudes Revenue (Q1 cumulative) | ¥114 million | Up 14.4% year-on-year | ↑ |
| Overseas Classroom-style Training Revenue (Q1 cumulative) | ¥39 million | Up 44.6% year-on-year | ↑ |
| Full-Year Consolidated Revenue Forecast | ¥3,934 million (up 8.2% year-on-year) | ¥3,637 million (actual for FY2025 ended December 2025) | ↑ |
| Full-Year Operating Profit Forecast | ¥409 million (up 15.6% year-on-year) | ¥354 million (actual for FY2025 ended December 2025) | ↑ |
| Equity Ratio | 58.3% | 58.8% (end of FY2025 ended December 2025) | ↓ |
Business Details
The only reportable segment operated by the Arrows Corporation group. Targeting major domestic corporations as its primary customers, the segment provides classroom-style training, online training, global HR development, the cloud-based LMS "etudes," and overseas classroom-style training. It offers integrated solutions—from business skills, mindset, and language training to visualization of training outcomes and retention support—for employees of government agencies, private companies, school corporations, and local governments. The group operates domestically and internationally, including through QUINTEGRAL PHILIPPINES, INC.
Recent Overview
Q1 revenue declined 2.4% year-on-year, but operating loss improved, driven by etudes and overseas training
Consolidated revenue for Q1 of FY2026 (ending December 2026) (January to March 2026) was ¥606 million (down 2.4% year-on-year). Corporate Education was soft at ¥452 million (down 8.5%) due to lower transaction amounts with new customers, while etudes performed well at ¥114 million (up 14.4%) and Overseas Classroom-style Training was strong at ¥39 million (up 44.6%) due to the consolidation contribution of QUINTEGRAL PHILIPPINES, INC. Due to the continued effect of cost reduction efforts, SG&A expenses decreased 3.1% year-on-year to ¥454 million, and the operating loss improved to ¥121 million (compared to a loss of ¥127 million in the same period prior year). Due to the recognition of deferred tax assets (income tax adjustment of -¥26 million), the net loss improved significantly to ¥91 million (compared to a loss of ¥130 million in the same period prior year). There is no change to the full-year earnings forecast (revenue of ¥3,934 million, operating profit of ¥409 million).
Key Products
Growth Drivers
- Seasonal recovery in revenue driven by large-scale orders for new-employee training concentrated in Q2 and improved order rates
- Continued growth of stock-type revenue through etudes' ASP model (up 14.4% year-on-year in Q1)
- Expansion of the global expansion foundation through the consolidation of QUINTEGRAL PHILIPPINES, INC. as a subsidiary, contributing to increased revenue in Overseas Classroom-style Training
- Reduction of SG&A expenses through continued cost-cutting efforts (down 3.1% year-on-year in Q1)
- Increase in etudes' ARPU (through minimum pricing introduction and enterprise content support initiatives)
- Rising attention to human resource development as a countermeasure to labor shortages and an increase in companies actively investing in training
Risks
- Risk of declining transaction amounts with new customers in Corporate Education (risk of failing to meet full-year forecasts if the Q1 year-on-year decline of 8.5% continues)
- Geopolitical risks affecting Overseas Classroom-style Training (economic slowdown stemming from Middle East tensions, US trade policy, and the situation in Ukraine)
- Risk of existing training services becoming obsolete due to the rapid proliferation of generative AI utilization
- Cost fluctuation risk stemming from the structure's reliance on outsourced instructors (potential pressure on profit margins from a rising ratio of outsourcing costs)
- Risk of impairment of goodwill arising from M&A (balance of ¥225 million as of the end of March 2026)
- Risk of customers reducing training budgets due to uncertainty in the domestic economic outlook stemming from price increases, exchange rate fluctuations, and policy interest rate revisions
- Risk of rising funding costs as short-term borrowings increased from ¥300 million at the end of the previous fiscal year to ¥500 million
Last updated: March 24, 2026