ASIRO Inc.

Business Details

Following the redefinition of the business portfolio based on the "Growth Strategy and Shareholder Returns" announced on March 12, 2026, the former "Media Business" was split into two segments: the "Legal Media Business" (a portal for lawyers centered on the Bengo4 Navi Series) and the "Legal Alliance Business" (derivative media such as the job-change media "Carisumu"). For the current interim period (H1 FY2026, ending March 2026... i.e. October 2026), combined revenue for both segments was ¥3,329 million, accounting for approximately 93.5% of consolidated revenue of ¥3,561 million.

Recent Overview

While the Legal Alliance Business drove revenue growth, profits at both segments declined year on year, making the divergence between the two clear.

In H1 FY2026 (ending March 2026), the Legal Alliance Business posted revenue of ¥1,659 million, up 26.8% year on year, driving overall company revenue growth, but segment profit was limited to ¥257 million, down 17.5% year on year due to increased advertising media costs. The Legal Media Business saw revenue decline 8.0% year on year to ¥1,671 million due to the reaction from the expansion of high-unit-price products in the prior period, with segment profit down 7.0% year on year to ¥698 million. Following the segment reorganization, improving profitability through more efficient advertising investment and enhanced referral precision using AI will be a key challenge going forward.

Key Products

Growth Drivers

• Structural expansion of new customer acquisition competition and customer acquisition needs driven by the continued growth in the lawyer population (45,808 as of March 2024)
• Steady net growth in the number of listing slots and listed clients in the Legal Media Business, along with strengthened profitability of the core lawyer advertising listing service
• Expansion of case acquisition for the job-change media "Carisumu" in the Legal Alliance Business, backed by rising corporate hiring appetite
• Continued growth of the internet advertising market (¥4,045.9 billion in ad spend in 2025, up 10.8% year on year, exceeding 50.2% of total ad spend)
• Efforts to improve profitability and maximize LTV through AI-driven extraction of user needs and improved referral precision
• Building a business cycle model through collaboration with the Legal Protect Business and HR Business

Risks

• Increased business volatility due to growing dependence on high-unit-price products and specific major clients (the reaction from high-unit-price products materialized in the Legal Media Business in the current interim period)
• Profit pressure on the Legal Alliance Business from persistently high advertising costs amid the expanding internet advertising market (segment profit margin declined to 15.5% in the current interim period)
• Risk of fluctuations in organic search traffic due to search engine specification changes such as Google algorithm updates
• Risk of rising customer acquisition costs and churn rates due to intensifying competition with rivals
• Impairment risk related to goodwill (¥1,139 million)
• Increased administrative costs and greater allocation of company-wide expenses associated with the segment reorganization (adjustment amount of ¥280 million in the current interim period, up ¥53 million year on year)