TWOSTONE&Sons CO.LTD.
7352・Growth Market・Services
Business
TWOSTONE&Sons Inc. is a Tokyo Stock Exchange Growth Market-listed company that originated from an IT engineer-focused HR technology company founded in 2013, and transitioned to a holding company structure in June 2023. Under the management vision of "BREAK THE RULES" and the theme of "Technology × HR," the company operates three segments: ①"Engineer Platform Service" (approximately 87% of sales), which provides end-to-end matching, training, and career change support for freelance and full-time engineers; ②"Marketing Platform Service," which supports digital marketing; and ③"Consulting & Advisory Service," comprising M&A advisory and strategic consulting. The company has 13 consolidated subsidiaries (as of November 27, 2025) and continues to actively expand its business through M&A.
Business Model
In the core Midworks Business, the company matches freelance engineers with client companies under quasi-delegation contracts, generating recurring revenue linked to the number of active engineers. The School Business and Stars Agent Business serve as the engineer supply pipeline, while the FCS Business and Contract Development Business complement this with contract revenue. The Consulting & Advisory segment achieves high profit margins through M&A Advisory success fees and Strategic Consulting Business project fees. The structure is designed to generate cross-selling through sharing of databases and know-how across the group.
Company Strengths
Revenue expanded 4.2-fold from ¥4,283 million in FY2021 (ending August 2021) to ¥18,077 million in FY2025 (ending August 2025). Operating profit grew approximately 6.4-fold over the same period, from ¥128 million to ¥820 million. In FY2025 (ending August 2025), revenue grew 26.5% year-on-year and operating profit grew 72.7% year-on-year, with the pace of profit growth accelerating alongside revenue growth, while gross profit margin also improved from 28.8% to 30.5%.
The company has a structure that completes a sequential engineer career path—"learning (tech boost) → job change support (Stars Agent) → freelance independence (Midworks) → contract development (FCS/Growth One)"—entirely within its own group. Each business accumulates and shares its own engineer database, forming a supply pipeline that is difficult for competitors to replicate.
Since 2021, the company has sequentially made subsidiaries of multiple companies, including TSR Inc., JinEarth, MapleSystems, Carecon, enableX, Strategy Campus, and FAM. In FY2025 (ending August 2025) alone, it carried out four M&A deals in the strategic consulting area, expanding the revenue of the Consulting & Advisory segment by 80.3% year-on-year to ¥1,865 million.
ENVALITH's Perspective
Performance Trend
Cumulative results for the first three quarters of FY2026 (ending March 2026) (September 2025–May 2026) showed revenue of ¥15,879 million (up 18.5% year on year), maintaining revenue growth. However, while gross profit margin improved from 30.6% in the same period of the previous year to 35.2%, SG&A expenses ballooned 55.2% year on year to ¥4,992 million, resulting in a sharp decline in operating profit to ¥602 million (down 32.3% year on year). As an external factor, the continued tightness in IT talent supply and demand has supported revenue growth in the Engineer segment (up 12.9% year on year), but profit in the Consulting & Advisory segment also fell 20.8% year on year, affected by recruitment investment. The full-year earnings forecast (revenue of ¥24,182 million, operating profit of ¥1,324 million) remains unchanged.
Growth Strategy
Composite growth strategy combining expansion of the engineer business centered on Midworks Business with M&A and enhanced consulting capabilities
The company continues to make advertising investments aimed at engineer and client acquisition, as well as investments in hiring full-time engineers and in-house sales personnel. Cumulative Engineer Platform Service revenue for the first nine months reached ¥13,083 million (up 12.9% year on year), expanding steadily, with the increase in active engineers driven by DX and generative AI demand serving as a revenue driver.
The company is actively hiring experienced industry professionals to strengthen its proposal capabilities in M&A Advisory Business and Strategic Consulting Business. Cumulative revenue for the first nine months maintained high growth at ¥2,488 million (up 68.7% year on year). However, due to upfront hiring investment, segment profit declined to ¥396 million (down 20.8% year on year), with the segment remaining in an investment-ahead-of-returns phase in terms of profitability.
During the cumulative nine-month consolidated period, three companies—Strategy Campus, FAM, and TWOSTONE Financial Technologies—were newly consolidated. Goodwill balance stood at ¥1,940 million (up ¥67 million from the previous fiscal year-end). The company continues to build up business scale through agile M&A, driving diversification of the group's overall revenue base.
While the company is working to expand its service offerings to cover the full range of corporate marketing needs, the segment fell into a loss for the cumulative nine-month period, posting a segment loss of ¥11,840 thousand (compared with segment profit of ¥49,217 thousand in the same period of the previous fiscal year). Revenue also contracted, down 10.7% year on year to ¥308 million, making it a challenge to realize the effects of measures aimed at improving profitability.
Last updated: July 17, 2026