PROGRIT Inc.

Business Details

Under the mission of "increasing the number of people who can thrive freely in the world," the group centers on "PROGRIT," a hands-on English coaching service supported by dedicated consultants, and also offers subscription-based services including "Shadoten" (listening-focused), "Spiful" (speaking-focused), and "DearTalk" (AI English conversation). In April 2026, the company made Study Hacker Co., Ltd. (now ENGLISH COMPANY Co., Ltd. (English Company Co., Ltd.)) a wholly owned subsidiary, adding the English coaching service "ENGLISH COMPANY" and transitioning to a group management structure. The group provides comprehensive English learning services for both individuals and corporations.

Recent Overview

In its first quarterly consolidated results, the company recorded revenue of ¥5,141 million and operating profit of ¥1,053 million, and made ENGLISH COMPANY a subsidiary

Starting with the third quarter of FY2026 (ending August 2026), the company prepared consolidated quarterly financial statements for the first time. For the cumulative third quarter (September 2025 to May 2026), revenue was ¥5,141 million, operating profit was ¥1,053 million (operating margin of 20.5%), and net income attributable to owners of the parent was ¥726 million. Effective April 28, 2026, the company acquired all shares of Study Hacker Co., Ltd. (now ENGLISH COMPANY Co., Ltd.), making it a wholly owned subsidiary. Goodwill of ¥294 million (amortized equally over 11 years) was recorded, but the allocation of acquisition cost remains under provisional treatment. The subsidiary's results were consolidated only on the balance sheet and were not included in the Q3 income statement. The full-year consolidated forecast calls for revenue of ¥7,600 million and operating profit of ¥1,450 million.

Key Products

Growth Drivers

• Continued expansion of demand for global talent development amid growing corporate interest in overseas expansion
• Expansion of corporate demand as more companies introduce English learning as part of employee benefits
• Expansion of the subscription revenue base driven by growth in Shadoten's paying subscriber count and extension of average subscription duration
• Diversification of the service portfolio through the expansion of new services such as Spiful and DearTalk
• Integration of scientific knowledge, expertise, and learning data, and establishment of a group management structure through the subsidiarization of ENGLISH COMPANY (formerly Study Hacker)
• Strengthening competitiveness through improved learning efficiency and user experience value leveraging AI
• Continued demand for hands-on consultant support (the importance of maximizing learning time remains unchanged even as AI becomes more widespread)

Risks

• Risk of structural change in the English learning market due to the advancement of generative AI (impact on existing coaching services from the spread of AI English conversation services)
• Risk of profit margin pressure from rising costs associated with hiring and training consultants
• Risk of impairment of goodwill (¥294 million, amortized equally over 11 years) related to the subsidiarization of ENGLISH COMPANY, and accounting uncertainty due to the provisional treatment of acquisition cost allocation
• Impact on performance from the expanded scope of consolidation and group integration costs in the first year of transitioning to consolidated accounting
• Risk of domestic market contraction due to the declining birthrate and aging population, and fluctuations in demand for English learning
• Rising user acquisition costs due to intensifying competition with rival companies (English conversation schools, AI English learning services, etc.)
• Difficulty in objectively assessing performance trends due to the absence of year-on-year comparison data (first quarterly consolidation)