Gakken Holdings (9470) Q4 2025 earnings summary

Executive summary

• Net sales rose 7.3% year-over-year to ¥199.1 billion, with operating profit up 19.7% to ¥8.23 billion and net profit up 58.3% to ¥3.58 billion, meeting profit targets and concluding the Gakken 2025 plan successfully.

• Growth was driven by strong performance in Healthcare and Nursing, Publishing and Content, and consolidation of DTP Education Solutions JSC and Kirihara Shoten K.K.

• Operating profit benefited from price revisions, cost reductions in Education, and recovery in Healthcare and Nursing in the second half.

• Net profit surged due to step-acquisition gains, sale of cross-shareholdings, and absence of prior year losses, despite impairment losses.

Financial highlights

• EBITDA increased 16.2% year-over-year to ¥12.97 billion, with EPS rising to ¥86.02 from ¥52.99.

• Ordinary profit rose 13.1% year-over-year to ¥7.81 billion.

• Comprehensive income reached ¥3.33 billion, up 39.9% year-over-year.

• Cash and cash equivalents at period end were ¥20.99 billion, up ¥2.23 billion year-over-year.

• Total assets increased 6.5% year-over-year to ¥139.1 billion, while equity-to-asset ratio declined to 36.9%.

Outlook and guidance

• FY2026 forecast: Net sales ¥205 billion (+3.0% YoY), operating profit ¥8.5 billion (+3.2% YoY), net profit ¥4 billion (+11.8% YoY), EPS ¥96.77.

• Focus on global expansion, especially in Southeast Asia, and strengthening recurrent education and reskilling initiatives.

• Continued investment in growth domains and proactive M&A to build core revenue pillars.

• Strategic shift toward enhancing business, financial, and organizational value through 2030.

• Business expansion in Vietnam and continued development of elderly care facilities expected.