TWOSTONE&Sons CO.LTD.
7352・Growth Market・Services
Engineer Platform Service
The group's largest segment, providing IT engineer resources for independence support, career changes, and contract development
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (cumulative Q3 FY2026, ending August 2026) | ¥13,083 million | ¥11,583 million (cumulative Q3 FY2025, ending August 2025) | ↑ |
| Segment profit (cumulative Q3 FY2026, ending August 2026) | ¥1,020 million | ¥961 million (cumulative Q3 FY2025, ending August 2025) | ↑ |
| Segment revenue (full year FY2025, ended August 2025) | ¥15,772 million | — | ↑ |
| Segment profit (full year FY2025, ended August 2025) | ¥1,148 million | — | — |
| Segment revenue (interim period FY2026, ending August 2026) | ¥8,619 million | — | ↑ |
| Segment profit (interim period FY2026, ending August 2026) | ¥595 million | — | ↓ |
| Goodwill balance (as of May 31, 2026) | ¥1,940 million | ¥1,873 million (as of August 31, 2025) | ↑ |
Business Details
Centered on Branding Engineer Co., Ltd., this segment comprises the Midworks Business, which matches freelance engineers with companies; the FCS Business, providing contract development and engineer organization consulting; the Stars Agent Business, offering career change support; the Contract Development Business (Growth One); and the Engineer Matching Business (TSR, JinEarth, MapleSystems, Carecon, FAM). It provides total solutions to resolve companies' IT talent shortages and is the core segment, accounting for approximately 82% of group revenue.
Recent Overview
Revenue rose 12.9% year on year to ¥13,083 million, but profit margins trended downward due to upfront investment
For the cumulative nine months of FY2026 (ending August 2026) (September 2025 to May 2026), segment revenue was ¥13,083 million (up 12.9% year on year) and segment profit was ¥1,020 million (up 6.2% year on year). The company focused on acquiring new client companies, primarily through the Midworks Business, and actively invested in advertising for engineer and customer acquisition as well as in recruiting full-time engineers and internal sales staff. FAM Co., Ltd. joined as a newly consolidated subsidiary this quarter, expanding the scope of consolidation. Profit growth has been constrained relative to revenue growth, and the phase of upfront investment continues.
Key Products
Growth Drivers
- Accelerated acquisition of new clients for the Midworks Business amid sustained high demand for IT talent driven by expanding DX investment and generative AI utilization
- Increase in the number of active engineers through recruitment investment in full-time engineers and internal sales staff
- Expansion of the engineer supply pipeline through stronger collaboration with the Stars Agent Business
- Expansion of the scope of consolidation and accumulation of business scale through M&A, including FAM Co., Ltd.
- Response to increasingly sophisticated and specialized IT skill requirements, including rising demand for cybersecurity
Risks
- Risk that securing freelance and full-time engineers becomes difficult due to intensifying competition for engineers among competitors
- Risk of declining profit margins relative to revenue growth due to upfront advertising and recruitment investment (in the cumulative nine months of FY2026 (ending August 2026), segment profit growth lagged behind revenue growth)
- Risk of impairment of goodwill acquired through M&A (goodwill balance of ¥1,940 million as of the end of May 2026)
- Risk of declining competitiveness due to delayed response to changes in IT engineers' working environments and diversification of employment forms
- Risk of quality variation stemming from matching operations that depend heavily on individual staff
Last updated: November 27, 2025