Institution for a Global Society (4265) investor relations material

Executive summary

• Revenue increased 9.3% year-over-year to ¥659 million, driven by growth in HR and education segments.

• Operating loss narrowed to ¥227 million from ¥303 million, and net loss improved to ¥282 million from ¥336 million year-over-year.

• HR and education segments both achieved revenue growth and segment profitability, while the Platform/Web3 segment posted a larger loss due to strategic withdrawal from a project and related provisions.

• Cost optimization efforts led to a 15% reduction in company-wide costs and a return to positive operating cash flow after four years.

Financial highlights

• Revenue: ¥659 million (+9.3% YoY); Operating loss: ¥227 million (improved from ¥303 million loss); Net loss: ¥282 million (improved from ¥336 million loss).

• HR segment revenue: ¥282 million (+18.3% YoY), segment profit: ¥72 million (vs. ¥22 million loss prior year).

• Education segment revenue: ¥329 million (+6.5% YoY), segment profit: ¥124 million (+26.5% YoY).

• Platform/Web3 segment revenue: ¥48 million (-13.6% YoY), segment loss: ¥181 million (vs. ¥147 million loss prior year).

• Cash and equivalents at year-end: ¥493 million, up ¥171 million from prior year.

Outlook and guidance

• FY2027 guidance: Revenue ¥850 million (+29.0% YoY), operating profit ¥10 million (vs. ¥227 million loss), net profit ¥7 million (vs. ¥282 million loss).

• HR segment expects continued growth from consulting and new partnerships; education segment anticipates a temporary revenue dip but aims for stable growth via product upgrades and partnerships.

• Platform/Web3 segment targets a turnaround to profitability through new product launches and international expansion.