UNITED,Inc. Q1 FY2026 earnings call

Corporate Governance & Capital Structure Update

• On May 30, the parent-child listing relationship with Hakuhodo Dy Holdings (parent of majority shareholder Hakuhodo DY ONE) was dissolved to eliminate potential conflicts of interest between the parent company and minority shareholders and improve corporate value.
• United acquired a portion of the United shares held by Hakuhodo DY ONE as treasury shares, and the existing capital and business alliance agreement between the two parties was terminated. This further improves United's management independence.
• Both parties agreed to strengthen mutually beneficial collaboration, specifically deepening cooperation for the businesses of Brewas Inc. and United Marketing Technologies Inc. going forward.

Investment Business Updates

• No large-scale securities sales are expected this fiscal year (following large sales in the prior fiscal year), leading to a year-over-year decline in revenue and profit for the first quarter.
• As of the end of June 2025, United holds unlisted shares of 135 portfolio companies with a fair market value of 7.6 billion yen.
• The annual plan targets 1.5 billion yen in total investment across 30 new investments; the first quarter saw 0.25 billion yen deployed to 7 new portfolio companies. The firm is prioritizing larger-ticket growth investments this fiscal year to drive medium-term profit generation.
• One notable new investment was a lead investment in Brainbuddie Inc., a firm operating sales support services.

Education Business Updates

• Revenue grew year-over-year due to the consolidation of Bestco Inc. in the prior fiscal year. First quarter operating loss is normal due to Bestco's inherent seasonal revenue pattern, where the first quarter posts lower sales than subsequent quarters.
• The business added headcount to strengthen digital capabilities. Bestco's overall student count continues to grow steadily, despite regular quarterly fluctuations tied to seasonal courses.
• 6 new Bestco classrooms were opened in the first quarter across the Tohoku-Kita Kanto and Chugoku-Shikoku regions. Another round of openings of the same scale is planned for the fourth quarter this fiscal year, with accelerated expansion planned starting from the next fiscal year. New store openings are targeted at non-metropolitan areas in existing operating regions, timed to align with peak student recruitment seasons in Q1 and Q4.

Human Resources Matching Business Updates

• Revenue grew year-over-year and operating loss shrank, driven by expansion of general recruiting operations and the designer-focused matching business, with first quarter results in line with plan.
• The firm is pushing for operational efficiency through AI adoption. It entered a business alliance with Forward Inc., an AI-powered recruitment efficiency SaaS provider, to relaunch its scout transmission agency tool offerBrain with AI-enabled efficiency improvements for outbound recruiting work.

AdTech & Content Business Updates

• Revenue grew year-over-year driven by expansion of Fogg Inc.'s online lottery service RAFFLE.
• Operating profit declined year-over-year due to headcount increases for strategic pre-investment at Fogg. Growth is expected to accelerate in the second half of the fiscal year.

• Investment Business: 83 million yen (0.083 billion yen) in revenue, 167% full-year plan progress, operating loss of 23 million yen (0.023 billion yen). Revenue contribution share: ~4.2% of total consolidated revenue.
• Education Business: 729 million yen (0.729 billion yen) in revenue, 18% full-year plan progress, operating loss of 209 million yen (0.209 billion yen). Revenue contribution share: ~37.2% of total consolidated revenue.
• Human Resources Matching Business: 187 million yen (0.187 billion yen) in revenue, 23% full-year plan progress, operating loss of 18 million yen (0.018 billion yen). Revenue contribution share: ~9.5% of total consolidated revenue.
• AdTech & Content Business: 961 million yen (0.961 billion yen) in revenue, 19% full-year plan progress, operating profit of 9 million yen (0.009 billion yen). Revenue contribution share: ~49.1% of total consolidated revenue. Total consolidated revenue for the quarter is 1.959 billion yen, with an overall 20% progress against the full-year plan, and a consolidated operating loss of 493 million yen (0.493 billion yen).

• The first quarter of fiscal 2026 is broadly in line with the full-year plan, and management maintains the original full-year earnings forecast, expecting growth to accelerate from the second quarter onwards, centered on the education business, to hit full-year targets.
• A consolidated operating loss is expected for the full fiscal 2026, primarily due to the absence of expected large securities sales in the investment business segment.
• Management targets profit generation across all business segments starting from the next fiscal year, driven by growth in the education and human resources matching business segments.
• Investment business targets 30 new investments totaling 1.5 billion yen for the full year, with first quarter progress on track and full-year investment execution expected to meet plan, even with increased focus on larger-ticket growth investments.

• The investment business has high earnings volatility due to unpredictable timing of securities sales, which can lead to sharp swings in quarterly and full-year financial performance.
• Seasonal revenue fluctuation in the education business (centered on the recently consolidated Bestco) leads to lower revenue and operating losses in the first quarter, with results dependent on expected growth in subsequent quarters that may not materialize.

No formal question and answer section was included in the provided earning call transcript.