GAKKYUSHA CO.,LTD.

Business Details

The core business is exam-preparation instruction for junior high, high school, and university entrance examinations, operated under multiple brands including "ena Elementary/Junior High Division," "ena Kobetsu" (individualized tutoring), "ena Nursing," "ena Art," and "ena High School Division." Domestic schools are concentrated in the greater Tokyo area, while the GAKKYUSHA USA group operates exam-prep schools for Japanese expatriate children in North America and Europe. The company's strength lies in its track record of admissions to Tokyo Metropolitan integrated junior-senior high schools and elite Tokyo Metropolitan high schools, supported by an ICT-based academic improvement system that includes the "Double Learning System" of recorded video lessons and online learning.

Recent Overview

Despite a marginal revenue decline, segment profit rose substantially due to expanded training camps and cost efficiency gains.

Revenue in the Education Business for FY2026 (ending March 2026) was ¥12,419 million (down 1.7% year on year), a marginal decline. The main cause was a decrease in the number of students aspiring to Tokyo Metropolitan integrated junior-senior high schools and Tokyo Metropolitan high schools, due to the expansion of effectively tuition-free private high schools in Tokyo. On the other hand, the summer training camp was expanded from the previous 5 nights/6 days to 10 nights/11 days, with a new long camp of 22 nights/23 days also introduced, and a 13 nights/14 days long winter camp was implemented, driving growth in seasonal course revenue. The disappearance of one-time costs incurred in the prior year for improvements to school facilities and training camp sites, along with management efficiency gains from school consolidations, also contributed, resulting in segment profit of ¥2,747 million (up 13.4% year on year), a substantial increase. The company recorded a total of 1,097 successful applicants across 11 Tokyo Metropolitan integrated junior-senior high schools and 377 successful applicants across the 7 Tokyo Metropolitan priority schools (No. 1 among all exam-prep schools).

Key Products

Growth Drivers

• Maintenance and enhancement of brand strength through a strong track record of admissions to Tokyo Metropolitan integrated junior-senior high schools and elite Tokyo Metropolitan high schools (No. 1 among all exam-prep schools in number of successful applicants to the 7 Tokyo Metropolitan priority schools)
• Growth in seasonal course revenue driven by a substantial expansion of summer and winter training camps (extended from 5 nights/6 days to 10 nights/11 days, plus newly established long camps of 22 nights/23 days and 13 nights/14 days)
• Capturing new demand through installation of private junior/senior high exam-prep courses at all school locations and the opening of "Kiwami," a specialized school for the most elite private/national junior high exam prep (evolving from "ena for Tokyo Metropolitan schools" to "ena for both Tokyo Metropolitan and private schools")
• Improved educational quality and competitiveness through expansion of "ena Saiko Suijun" (highest-level) locations in the junior high division and development of the original textbook "EXE"
• Increase in overseas revenue driven by favorable trends in overseas student numbers at the GAKKYUSHA USA group
• Improved management efficiency and cost reduction through agile promotion of school consolidations and closures

Risks

• Structural market contraction risk stemming from the declining school-age population due to the falling birthrate
• Decrease in the number of students aspiring to Tokyo Metropolitan integrated junior-senior high schools and Tokyo Metropolitan high schools due to the expansion of effectively tuition-free private high schools in Tokyo
• Decline in the number of school locations and student numbers at the individualized tutoring division (ena Kobetsu) due to school closures
• Increase in impairment losses associated with the consolidation and closure of school locations (FY2026: ¥268,887 thousand, a substantial increase from ¥85,761 thousand in the prior year)
• Increased upfront investment costs associated with new school openings (in Chiba, Saitama, etc.) and a time lag before these become profitable
• Deteriorating competitive environment due to intensifying entry by EdTech companies and firms from other industries
• Increase in advertising expenses due to adoption of new advertising methods such as transit advertising