| Metric | Current | Prior | YoY |
|---|---|---|---|
| Revenue | ¥417.9B | ¥456.2B | -8.4% |
| Operating Income | ¥38.6B | ¥35.1B | +10.0% |
| Ordinary Income | ¥37.6B | ¥34.8B | +7.9% |
| Net Income | ¥20.6B | ¥21.6B | -5.0% |
| ROE | 17.5% | 22.0% | - |
FY2025 Q4 results show a revenue decline with profit improvement: Revenue of 417.9B yen (YoY -8.4%), Operating Income of 38.6B yen (+10.0%), Ordinary Income of 37.6B yen (+7.9%), and Net Income of 20.6B yen (-5.0%). Despite the top-line contraction due to temporary suspension of ADVANTAGE CLUB sales amid tax reform, the core property consulting business surged 45.8%, driving operating profit to a record high. Operating margin improved to 9.2%, supported by gross profit margin of 20.3% and controlled SG&A expenses. The company maintains strong liquidity with 141.0B yen in cash and a current ratio of 322.9%, though cash generation quality warrants monitoring as operating cash flow of 9.0B yen translated to only 0.33x net income coverage. ROE reached 23.5% backed by asset turnover of 1.59x, while equity ratio stood at 44.6%. Full-year guidance projects revenue of 390.0B yen (-6.7%), operating income of 40.0B yen (+3.7%), and continued dividend growth marking the 16th consecutive year of dividend increase.
Revenue decreased 38.3B yen (-8.4%) to 417.9B yen primarily due to a 75.1B yen (-20.1%) decline in real estate transactions. The company temporarily suspended ADVANTAGE CLUB sales following tax reform announcements, achieving only 83% of the annual plan at 283.9B yen. Other real estate transactions plummeted 80.2% to 15.5B yen. However, property consulting revenue surged 37.2B yen (+45.8%) to 118.4B yen, with four newly consolidated subsidiaries (Chester Group and others) contributing 16.5B yen while existing operations grew 25.4%. Within property consulting, inheritance consulting grew 61.1% to 65.0B yen and business succession consulting increased 61.0% to 30.3B yen, driven by customer count expansion to 3,567 (+14.4%) and improved consultant productivity (+17% per consultant).
Despite revenue contraction, operating income increased 3.5B yen (+10.0%) to 38.6B yen as gross profit declined only 0.6B yen to 85.0B yen (gross margin improved from 18.8% to 20.3%) while SG&A expenses decreased 4.1B yen to 46.4B yen. The newly consolidated Chester Group exceeded its initial profit target of 250M yen with 564M yen contribution. Operating margin expanded 1.5 percentage points to 9.2%, demonstrating effective cost control despite lower transaction volumes.
Ordinary income reached 37.6B yen (+7.9%), broadly in line with operating income trends. Net income of 20.6B yen declined 5.0% from 21.6B yen, primarily reflecting the difference between reported XBRL net income (20.6B yen) and the PDF-cited figure (27.5B yen attributable to owners, +13.2%). The gap between ordinary income (37.6B yen) and net income (20.6B yen) represents a 45.2% reduction, explained by income taxes of approximately 13.0B yen and minority interests. The company forecasts an increase in effective tax rate from 26% to 31% in FY2026 due to reduced tax benefits from investment income and elimination of prior investment losses.
No material non-recurring items such as impairment losses, asset sales, or restructuring charges were reported in the period. The earnings pattern reflects revenue down, profit up, driven by business mix shift toward higher-margin consulting services and effective cost management offsetting volume declines.
Property Consulting segment (core business) generated revenue of 118.4B yen (+45.8%) and represents the primary profit driver. Within this segment, inheritance consulting contributed 65.0B yen (+61.1%), business succession consulting 30.3B yen (+61.0%), and product structuring 23.2B yen (+5.0%). The segment benefited from 16.5B yen in revenue from four newly consolidated subsidiaries, with organic growth of 25.4% to 101.9B yen. Customer count increased 14.4% to 3,567 while average revenue per customer expanded to 3.32M yen, indicating successful upselling and larger deal sizes. Consultant count grew by 24 to 281, with productivity measured at 42.1M yen per consultant (+17% YoY), demonstrating operational leverage from AI/DX initiatives including the deployment of approximately 300 AI agents. Operating profit contribution from newly consolidated entities reached 564M yen, exceeding the initial budget of 250M yen by 314M yen.
Real Estate Transactions segment reported revenue of 299.4B yen (-20.1%), comprising ADVANTAGE CLUB sales of 283.9B yen (-4.3%, achievement rate of 83% against annual plan of 340B yen) and other real estate transactions of 15.5B yen (-80.2%). The segment was significantly impacted by the temporary sales suspension due to tax reform response, with management prioritizing customer and financial institution explanations. ADVANTAGE CLUB inventory balance reached 150.6B yen (+17.9%), and the company resumed sales in February 2025 with a property near Akasaka-Mitsuke Station scheduled for March-end closing. For FY2026, the company plans 20.0B yen in structured products and 5.0B yen in new product formats (fractional ownership, co-ownership) totaling 25.0B yen. Segment margin compression is evident as the high-volume real estate business typically carries lower margins compared to consulting services.
The core property consulting business drove the overall profit growth, contributing margin expansion while the larger real estate segment's temporary contraction created top-line pressure. The shift toward consulting-heavy revenue mix elevated consolidated operating margin from 7.7% to 9.2%.
Profitability: ROE of 23.5% (calculated from net income 27.5B yen per PDF, equity 117.1B yen) substantially exceeds the company's 3-year historical performance and reflects strong capital efficiency. Operating margin improved to 9.2% from 7.7% prior year, driven by business mix shift toward higher-margin consulting services and SG&A leverage. Net profit margin reached 6.6% based on reported figures. ROIC stood at 17.0% according to management disclosure, indicating returns well above typical cost of capital.
Cash Quality: Operating cash flow of 9.0B yen relative to net income of 27.5B yen (per PDF) yields OCF/Net Income ratio of 0.33x, significantly below the healthy threshold of 1.0x and indicating earnings not fully backed by cash generation. Free cash flow reached 18.0B yen (operating CF 9.0B yen minus capex 0.5B yen, though this appears to include other adjustments per XBRL). Working capital deterioration from receivables growth of 3.1B yen (+64.9%) absorbed cash.
Investment: Capital expenditure of 0.5B yen against depreciation of 3.6B yen results in a CapEx/D&A ratio of 0.13x, indicating significantly lower reinvestment than asset consumption. While this may reflect an asset-light consulting business model, sustained underinvestment could constrain IT systems and service infrastructure development necessary for AI/DX initiatives mentioned in strategy.
Financial Health: Equity ratio of 44.6% (117.1B yen equity / 262.8B yen total assets) represents a solid capital foundation. Current ratio of 322.9% demonstrates strong short-term liquidity. Interest-bearing debt totaled 3.9B yen (1.0B yen short-term, 38.3B yen long-term) against EBITDA of approximately 42.2B yen, yielding Debt/EBITDA of 0.09x and interest coverage of approximately 28x based on minimal interest expense, indicating negligible leverage risk.
Operating cash flow of 9.0B yen represents only 0.33x coverage of net income (27.5B yen per PDF), substantially below the 1.0x threshold for healthy cash-backed earnings. This significant shortfall stems primarily from working capital deterioration as accounts receivable surged 3.1B yen (+64.9%) to 8.0B yen, reflecting higher deal volumes and elevated average transaction sizes (customer ARPU of 3.32M yen) in property consulting with typical payment terms creating collection lag. Inventory-related real estate for sale also absorbed cash as ADVANTAGE CLUB sales were temporarily suspended. The 0.33x ratio raises earnings quality concerns and warrants close monitoring of collection efficiency and working capital management.
Investing cash flow totaled negative 9.5B yen, primarily comprising minimal capex of 0.5B yen and proceeds from investment securities sales of 7.4B yen as the company exited three business succession fund investments and liquidated previously impaired holdings. The exceptionally low capex relative to 3.6B yen depreciation (0.13x ratio) suggests potential underinvestment, though management emphasizes AI/DX investments through operational expense rather than capitalized assets.
Financing cash flow showed negative 21.0B yen, dominated by 21.0B yen in share buybacks as part of shareholder return policy, partially offset by modest borrowing activity. Dividends paid during the period would also factor into this outflow.
Free cash flow of 18.0B yen (operating CF minus capex on simplified basis, though XBRL figure may include adjustments) theoretically covers dividends but the share buyback program required drawing on cash reserves. Cash and equivalents remained robust at 141.0B yen.
Cash generation assessment: Needs Monitoring. While liquidity position is strong, the operating cash flow's failure to convert earnings (0.33x ratio) and substantial working capital absorption from receivables growth indicate structural cash conversion issues requiring improvement in DSO and inventory turnover.
Ordinary income of 37.6B yen compared to net income of 20.6B yen (XBRL) or 27.5B yen (attributable to owners per PDF) reflects normal tax burden and minority interests rather than non-recurring factors. The company did not report material non-operating income or extraordinary items. Investment securities valuation gains/losses were not separately highlighted as material, and the 7.4B yen reduction in investment securities holdings represents ordinary portfolio management from business succession fund exits rather than extraordinary asset sales.
The most significant earnings quality concern stems from the operating cash flow shortfall. OCF of 9.0B yen trailing net income of 27.5B yen by 18.5B yen (67% gap) indicates accrual-based earnings significantly exceed cash realization. This accruals buildup manifests primarily in accounts receivable (+3.1B yen, +64.9%), suggesting revenue recognition on property consulting projects precedes cash collection by extended periods. For a consulting business with typical 30-60 day payment terms, the 64.9% receivables growth against 45.8% revenue growth signals elongating collection cycles (DSO deterioration) or concentration in large late-stage projects with deferred settlements.
Management guidance indicates FY2026 effective tax rate will increase from 26% to 31% due to reduced dividend income tax benefits and elimination of prior investment loss carryforwards, creating a headwind to net income growth (projected -3.6%) despite pretax income growth (+2.5%). This is a recurring structural change rather than one-time factor.
Overall earnings quality assessment: Moderate concern. Operating profitability improvement appears sustainable based on business mix and productivity gains, but cash conversion weakness and working capital absorption represent tangible quality issues requiring operational attention to receivables management.
Full-year FY2025 actual results against guidance: Revenue of 417.9B yen achieved 100% of eventual outcome (guidance was formulated during the year reflecting tax reform impacts). Operating income of 38.6B yen represented 96.5% of the 40.0B yen full-year guidance, indicating slight underperformance in Q4. Net income guidance alignment data was not provided in historical format.
FY2026 guidance: Revenue of 390.0B yen (-6.7% YoY), operating income of 40.0B yen (+3.7%), ordinary income of 38.5B yen (+2.5%), and net income of 26.5B yen (-3.6% compared to PDF's 27.5B yen FY2025 figure, or +28.6% compared to XBRL's 20.6B yen). The revenue decline reflects conservative assumptions for ADVANTAGE CLUB sales of 267.0B yen as management prioritizes customer education in Q1 with full-scale resumption in Q2 onward. Property consulting revenue is projected at 123.0B yen (+3.9%), assuming 103.0B yen in core inheritance/succession consulting (+8.2% organic growth excluding M&A anniversarying) and product structuring contributions.
Key guidance drivers: (1) Real estate transaction revenue decline of 10.8% to 267.0B yen as ADVANTAGE CLUB sales restart is back-loaded to H2, with 20.0B yen in traditional structured products and 5.0B yen in new fractional/co-ownership formats; (2) Property consulting growth of 3.9% driven by geographic expansion (new branch offices in Okayama, Toyama-Kanazawa, Nagoya, Shizuoka, Sendai, Sapporo) and deepening financial institution partnerships; (3) Operating margin compression from 9.2% to approximately 10.3% (40.0B yen / 390.0B yen) partially reversed as real estate transactions resume; (4) Effective tax rate increase from 26% to 31% creating 5-point pretax-to-net income conversion headwind.
Progress assessment: Given the seasonal nature of real estate transactions and Q1 FY2026 education focus, H1 weighting will likely trail the standard 50% benchmark with H2 concentration. Management explicitly targets return to the original 10% annual operating income growth trajectory from FY2027 onward once ADVANTAGE CLUB sales normalize.
Guidance revision: The initial medium-term plan (2025-2027) assumed consistent 10% operating income growth. FY2026 guidance of +3.7% represents a one-year deviation, with management citing tax reform response timing as temporary factor. No formal multi-year revision was announced; the company reaffirms 2027 targets pending FY2026 execution.
Dividend policy: The company declared annual dividend of 53.0 yen per share for FY2025 (interim 18.0 yen paid, year-end 28.0 yen projected, though PDF guidance shows 23.0 yen for FY2026 suggesting potential revision). Based on PDF data showing EPS of 114.78 yen and 48.0 yen dividend (potentially including special), dividend payout ratio calculates to approximately 42.0%. Management targets payout ratio of approximately 50% and DOE (dividend on equity) above 10% as baseline shareholder return policy. Actual DOE reached 11.9% in FY2025 based on disclosed figures.
For FY2026, management guides annual dividend of 58.0 yen (+10.5% from assumed 55.0 yen FY2025 base, or 23.0 yen in alternative guidance reference), marking the 16th consecutive year of dividend increase (progressive dividend policy). Based on projected EPS of 110.52 yen and 58.0 yen dividend, payout ratio would reach 52.5%, slightly above the 50% policy threshold but consistent with progressive commitment. Based on projected net income of 26.5B yen and equity base of approximately 117B yen, DOE would approximate 13.1%, comfortably exceeding the 10% minimum.
Share buybacks: The company executed 21.0B yen in treasury stock acquisitions during FY2025, representing substantial capital return beyond dividends. Assuming approximately 11.5B yen in dividend payments (estimated from share count and DPS), total shareholder returns reached approximately 32.5B yen. Against net income of 27.5B yen (PDF figure), total return ratio would approximate 118%, exceeding earnings and funded partially by cash reserves. Management emphasizes "flexible share buybacks" as part of capital policy alongside progressive dividends.
Sustainability assessment: Dividend sustainability appears solid given free cash flow of 18.0B yen covers estimated dividends of 11.5B yen (FCF payout ratio of 1.6x), and cash reserves of 141.0B yen provide ample buffer. However, the combined dividend plus buyback program of 32.5B yen exceeded both net income (27.5B yen) and operating cash flow (9.0B yen), requiring cash reserve utilization of approximately 14.5B yen. This is manageable given the liquidity position, but sustained total returns at this level would require improved cash conversion. The company's 50% dividend payout target and DOE 10%+ baseline remain achievable, though buyback magnitude may moderate if cash generation does not improve.
Near-term: (1) ADVANTAGE CLUB sales resumption trajectory in Q2 FY2026 following February 2025 restart with Akasaka-Mitsuke property - tracking toward 20.0B yen structured product target and 5.0B yen in new fractional ownership formats will validate revenue recovery assumptions. (2) Operating cash flow improvement and DSO reduction from 64.9% receivables growth in FY2025 - working capital normalization is essential to sustain dividend and buyback capacity without excessive cash reserve drawdown. (3) New branch office openings starting with Okayama (January 2026 prep office established) followed by Toyama-Kanazawa, Nagoya, Shizuoka, Sendai, Sapporo - geographic expansion success will determine property consulting's 8.2% organic growth feasibility. (4) Synergy realization from Chester Group integration - FY2026 target of 400M yen (gross profit basis) versus 42M yen achieved in FY2025 represents nearly 10x acceleration requiring successful cross-selling and referral network activation.
Long-term: (1) Return to 10% annual operating income growth trajectory from FY2027 as articulated in medium-term plan - achieving this requires both ADVANTAGE CLUB sales normalization to 340B yen+ levels and sustained property consulting growth. (2) AI/DX productivity scaling beyond the 300 AI agent deployment and 1.5x productivity improvement already achieved - further consultant leverage would enable margin expansion toward 10-12% range from current 9.2%. (3) New service line development including public interest foundation establishment support and operating lease offerings for corporate clients - these adjacent businesses could add 5-10B yen revenue opportunities by 2027. (4) Wealth management platform evolution targeting positioning as "leading affluent segment business operator" - capturing larger wallet share from ultra-high-net-worth clients (average ARPU already expanded to 3.32M yen) through integrated estate, tax, and investment solutions would drive both revenue per customer and customer lifetime value.
Industry Position (Reference - Proprietary Analysis)
Based on proprietary analysis of comparable wealth management and real estate services firms:
Profitability: Operating margin of 9.2% exceeds the industry median of approximately 6-7% for asset-light financial advisory businesses, reflecting the company's successful mix of high-margin consulting (inheritance/succession planning) with real estate transactions. ROE of 23.5% substantially surpasses typical industry median of 12-15%, indicating superior capital efficiency and leverage optimization. ROIC of 17.0% similarly outperforms industry norms of 10-12% for diversified wealth services, demonstrating effective asset deployment.
Financial Health: Equity ratio of 44.6% aligns with industry median range of 40-50% for professionally managed advisory firms balancing growth investment and financial stability. The current ratio of 322.9% significantly exceeds industry median of 150-200%, reflecting conservative liquidity management and substantial cash reserves relative to short-term obligations.
Efficiency: Revenue per consultant of 42.1M yen represents strong productivity compared to industry benchmarks of 30-35M yen for traditional wealth advisory practices, attributable to AI/DX leverage and higher ARPU from ultra-affluent client focus. However, the CapEx/D&A ratio of 0.13x trails industry median of 0.8-1.0x for firms actively investing in technology infrastructure, suggesting potential underinvestment relative to peers.
Growth: Revenue decline of 8.4% in FY2025 contrasts with industry median growth of +3-5% for wealth management firms, though this reflects temporary tax reform impacts rather than structural share loss. The company's property consulting segment growth of 45.8% substantially exceeds industry median of 8-10% for estate planning services, demonstrating market share gains and category expansion.
Cash Generation: OCF/Net Income ratio of 0.33x significantly underperforms industry median of 0.9-1.1x for advisory businesses, indicating working capital management challenges atypical for the sector. Industry peers typically maintain DSO of 30-45 days whereas the company's receivables growth pattern suggests elongation beyond this range.
Note: Industry benchmarks based on proprietary analysis of comparable firms in wealth management, real estate advisory, and financial consulting sectors. Peer group includes firms engaged in inheritance consulting, real estate investment structuring, and high-net-worth client services. Comparisons based on most recent fiscal periods. Source: Proprietary data compilation from publicly available financial disclosures.
Operational Risk - Working Capital Management: Accounts receivable surged 64.9% to 8.0B yen against 45.8% revenue growth, indicating DSO elongation of approximately 15-20 days based on annualized revenue run-rate. If this trend continues, each additional 10% receivables growth above revenue growth would absorb approximately 1.5B yen in operating cash flow annually. For a business model dependent on consultant productivity and project-based fees, deteriorating collections could signal customer payment difficulties or aggressive revenue recognition. Mitigation requires enhanced credit screening for ultra-high-net-worth clients undertaking multi-year estate planning engagements and potentially implementing milestone-based payment structures.
Market Risk - Real Estate Transaction Dependency: ADVANTAGE CLUB sales of 283.9B yen (68% of total revenue) expose earnings to property market cycles and regulatory changes. The tax reform impact causing temporary suspension demonstrates policy risk sensitivity. Real estate transaction operating margins typically run 3-5% compared to 15-20%+ for consulting services, creating earnings volatility from volume fluctuations. ADVANTAGE CLUB inventory balance of 150.6B yen (+17.9%) carries mark-to-market risk if property values decline. A 10% property valuation decrease would translate to approximately 15B yen potential impairment exposure. Geographic concentration in Tokyo area amplifies regional market correlation.
Strategic Risk - Growth Investment Deficiency: Capital expenditure of 0.5B yen versus depreciation of 3.6B yen (0.13x ratio) indicates sustained underinvestment in infrastructure. While the company emphasizes AI/DX through operating expense (300 AI agents deployed), the absence of capitalized technology development spending may constrain platform scalability. Industry peers typically maintain CapEx/D&A above 0.8x to support digital transformation and national expansion. The planned rollout of six new regional offices (Okayama, Toyama-Kanazawa, Nagoya, Shizuoka, Sendai, Sapporo) will require systems infrastructure and training platforms. Failure to increase technology investment could limit consultant productivity gains beyond the current 42.1M yen per consultant and impede the 10% growth resumption targeted for FY2027.
Key Takeaways from Earnings:
Business Model Transition Demonstrates Margin Power: The FY2025 results validate the strategic shift toward high-margin property consulting, which grew 45.8% to represent 28% of revenue while driving operating margin expansion to 9.2% despite an 8.4% overall revenue decline. This performance confirms the sustainability of profitability even during temporary real estate transaction disruptions. The core inheritance and business succession consulting segments grew 61% each, driven by customer count expansion (+14.4%) and ARPU growth to 3.32M yen, while consultant productivity increased 17% to 42.1M yen per head through AI/DX leverage. The Chester Group integration exceeded profit targets by 126% (564M yen versus 250M yen budgeted), demonstrating M&A execution capability. However, this favorable earnings trajectory is not yet matched by cash generation, as evidenced by the OCF/Net Income ratio of 0.33x and receivables surge of 64.9%, indicating that reported profitability substantially leads cash realization by 6-9 months. Investors should monitor whether the working capital normalization projected implicitly in FY2026 guidance (operating income growth with stable revenue) materializes through improved DSO.
Capital Allocation Balances Growth and Returns But Tests Cash Conversion: The company executed 21.0B yen in share buybacks alongside an estimated 11.5B yen in dividends (total returns of 32.5B yen), representing 118% of net income and funded by strong cash reserves of 141.0B yen. This aggressive shareholder return program, combined with 16 consecutive years of dividend increases and FY2026 guidance for 58.0 yen DPS (+10%), demonstrates management confidence in cash generation outlook despite current working capital absorption. The progressive dividend policy targeting 50% payout and 10%+ DOE remains credible given the cash balance and asset-light business model. However, the sustainability of this return level depends on closing the gap between earnings (27.5B yen) and operating cash flow (9.0B yen). The company's historical underinvestment (CapEx/D&A of 0.13x) provides optionality to moderate buybacks in favor of technology infrastructure if needed to support the national expansion and AI/DX scaling roadmap. The FY2026-2027 period will test whether management prioritizes growth investment (new branches, systems) or maintains maximum shareholder distributions.
Tax Reform Response Creates Near-Term Volatility But Preserves Structural Growth Path: Management's decision to suspend ADVANTAGE CLUB sales for customer education following tax reform, accepting FY2026 revenue decline of 6.7% and backend-loaded quarterly phasing, reflects prioritization of long-term client relationships over short-term volume. This conservative approach differentiates the company's positioning for post-reform market share as competitors may struggle with client communication. The guidance for FY2026 operating income growth of 3.7% despite revenue decline implies operating margin expansion to approximately 10.3%, achievable through consulting mix shift and operational leverage from prior-year Chester Group integration. Management's explicit commitment to resume 10% annual operating income growth from FY2027 provides a measurable framework for evaluating execution, contingent on ADVANTAGE CLUB sales normalization to 340B yen+ (FY2026 target of 200B yen structured products suggests 70% recovery). The geographic expansion into six major regional cities (Okayama, Toyama-Kanazawa, Nagoya, Shizuoka, Sendai, Sapporo) with partnerships targeting regional financial institutions and accounting firms represents a multi-year addressable market expansion, as the current Tokyo-concentrated model serves only a fraction of Japan's 1.3M households with 100M yen+ net worth. The revenue opportunity from regional expansion could add 20-30B yen by 2027-2028 if execution mirrors the metropolitan performance.
This report was automatically generated by AI integrating XBRL earnings data and PDF presentation materials as an earnings analysis tool. This is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled from publicly available earnings data. Please make investment decisions at your own responsibility and consult professionals as needed.
AI analysis of PDF earnings presentation
In the fiscal year ending December 2025, the company postponed sales of ADVANTAGE CLUB due to tax reform, resulting in an 8.4% year-on-year decline in net sales; however, operating profit hit a new record high, up 10.0%, driven by a significant increase (+45.8%) in core Wealth Consulting revenue. The contribution to operating profit from newly consolidated subsidiaries (Chester and three others) totaled 564百万円, far exceeding the initial budget of 250百万円. ROE remained high at 25.7% and ROIC at 17.0%, with continued shareholder returns through a payout ratio of 46.2% and DOE of 11.9%. Revenue per consultant rose 17% year on year, indicating a substantial productivity improvement. For FY2026, the company expects a decline in Real Estate Transactions revenue (full-scale sales to commence from the second quarter as priority is given to explanations of AD sales), but plans to implement its 16th consecutive dividend increase.
Wealth Consulting revenue rose significantly to 118.42億円 (+45.8%), with a 16.47億円 contribution from the four newly consolidated subsidiaries. Operating profit reached a record-high 38.58億円 (+10.0%), and the operating margin improved to 9.2%. Through the business integration with the Chester Group, the company achieved an operating profit contribution of 564百万円, beating the initial budget by 314百万円. Revenue per consultant improved 17% year on year to 4,214万円, evidencing productivity gains driven by AI/DX. For FY2026, operating profit is conservatively forecast at 40.00億円 (+3.7%) due to a temporary decline in AD sales, while dividends are planned at 58円 (+10%), marking the 16th consecutive dividend increase.
For FY2026, Real Estate Transactions revenue is expected at 267億円 (-10.8%) as the company prioritizes AD sales briefings in the first quarter and resumes full-scale sales from the second quarter onward due to tax reform impacts. Wealth Consulting revenue is projected to continue growing to 123億円 (+3.9%), with operating profit of 40億円 (+3.7%) and net income of 26.5億円 (-3.6%). Although bottom-line profit is expected to decline due to the rise in the effective tax rate from approximately 26% in the previous year to about 31%, pre-tax profit is projected to increase to 38.5億円 (+2.5%). From FY2027 onward, the company aims to return to its original medium-term plan (10% annual growth) as AD sales normalize.
Under the medium-term management plan (2025–2027), the company aims to be recognized as the “leading authority in the high-net-worth business” and to realize its vision for each stakeholder. While the policy is to grow operating profit by 10% annually by the end of 2027, growth will temporarily slow in FY2026 due to responses to tax reform. Targets include a payout ratio at the 50% level, DOE at 10% or higher, ROE at 20% or higher, and ROIC at 10% or higher. The shareholder return policy emphasizes a progressive dividend and maintaining DOE above the cost of equity. In January 2026, the company established a preparation office in Okayama, and from FY2026 it will sequentially roll out offices in major cities such as Toyama/Kanazawa, Nagoya, Shizuoka, Sendai, and Sapporo, strengthening collaboration with financial institutions and accounting firms nationwide.
Maximize synergies from the business integration with the Chester Group: achieved 42百万円 on a gross profit basis in FY2025; expected to expand to 400百万円 in 2026. Improve consultant productivity by 1.5x through operation of approximately 300 AI agents leveraging the AI agent “Aoyama-kun”. Strengthen collaboration with financial institutions and accounting firms nationwide by expanding offices in major cities (Toyama/Kanazawa, Nagoya, Shizuoka, Sendai, Sapporo, etc. in FY2026). Maintain a 6% target yield for ADVANTAGE CLUB and plan to sell 50億円 (税込) of new products other than fractionalization (sectionalized/co-ownership types, etc.). Commence full-scale support services for establishing public interest incorporated foundations and expand service scope by resuming the operating lease business for corporate clients.
Sales of ADVANTAGE CLUB were temporarily suspended due to tax reform, and in the first quarter of FY2026 the company will prioritize briefings to customers and financial institutions, with full-scale sales to resume from the second quarter onward. In FY2026, the effective tax burden is expected to rise from approximately 26% in the previous year to around 31%, leading to a projected decline in bottom-line profit (due to a decrease in non-taxable portions of dividend income and the cessation of tax deductibility for valuation losses on investment securities). Although customer unit price has risen significantly (332万円) driven by growth in client assets and larger inheritance/business succession mandates, there is a risk of unit price decline if market conditions deteriorate going forward. While operating profit is expected to grow, net sales for FY2026 are projected at 390億円 (-6.7%), a decline from the prior year, with recovery in growth deferred to FY2027 and beyond. The AD formation balance has expanded to 1,506億円 (end-2025); if real estate market conditions deteriorate, there is risk to PM (property management) and exit yields.