UNITED,Inc. Q3 FY2026 earnings call

Company Structure

• The company is organized into three core businesses: Investment Business, Education Business, Human Resources Matching Business, and one expected growth business: AdTech & Content Business.

Investment Business Updates

• No large-scale securities sales occurred in the current period, leading to year-over-year decrease in both revenue and profit, which is a normal volatility for the investment business driven by timing and size of securities sales.
• As of end of December 2025, the company holds unlisted shares of 143 companies, with a fair market value of 8.4 billion yen.
• The company completed new investments in 6 companies during the third quarter, all operating in high-growth potential areas: Penguin Securities (crypto asset derivatives based in Singapore), Nehan (AI-powered public bidding platform), Livetoon (AI-powered audio/conversation tech for healthcare and IP sectors), UMAMI UNITED (plant-based alternative egg food tech).
• In January 2026, the company led a 500 million yen (0.5 billion yen) investment in SHONAI, a conglomerate focused on agriculture, tourism, and corporate transformation targeting regional economic growth, which aims for IPO by the fiscal 2031 March year end.
• The company will partner with SHONAI to build a new investment and support scheme for regional growth companies: SHONAI leverages its regional network for sourcing and on-the-ground support, while United contributes its investment expertise and corporate operating experience for due diligence and management support. The company plans to invest a total of 1.0 billion yen over 5 years through this partnership.
• Cumulatively through the third quarter, the company has invested 650 million yen (0.65 billion yen) into 20 companies, and is on track to hit full-year investment target.

Education Business Updates

• Bestco has achieved consecutive revenue growth since founding, and continues to grow after consolidation starting from Q4 of the previous fiscal year. It operates all directly-owned stores, enabling it to deliver high-quality service at low prices. For the current full fiscal year, Bestco plans to open 15 new stores (6 in Q1, 9 in Q4), reaching 130 total stores by year end. It continues to grow student count per store via operational improvement, and will use AI to automate operations and improve productivity going forward.
• Brewas has transferred its underperforming IT education business to refocus resources on app development. App development revenue is up 72% year-over-year and in recovery mode. It will grow by leveraging AI across all development processes (compared to competitors that only use AI in implementation) to deliver high-quality services with low cost and short lead time, and has already achieved up to 30% labor cost reduction.

Human Resources Matching Business Updates

• Libeis achieved 26% year-over-year revenue growth and 67% year-over-year profit growth. It reached profitability in the previous fiscal year and continues to generate profit in line with plan.
• United Recruitment achieved 8% year-over-year revenue growth, with its operating loss shrinking compared to prior period and in line with plan.

AdTech & Content Business Updates

• AdTech business achieved year-over-year growth in both revenue and profit, driven by improved ad product effectiveness and progressed partnership with Hakuhodo DY ONE.
• Content business saw year-over-year decline in both revenue and profit, due to the continued impact of a large lost contract in Fogg's online lottery business.

1. Investment Business: Revenue of 322 million yen (0.322 billion yen), operating loss of 125 million yen (0.125 billion yen), accounting for 4.9% of total consolidated revenue. As of the third quarter, full-year performance is ahead of plan due to gains from securities sales and limited partnership investment income. 2. Education Business: Revenue of 2.712 billion yen, operating loss of 137 million yen (0.137 billion yen), accounting for 41.3% of total consolidated revenue. Bestco is on track with plan, while Brewas' IT education business missed plan. 3. Human Resources Matching Business: Revenue of 584 million yen (0.584 billion yen), operating loss of 41 million yen (0.041 billion yen), accounting for 8.9% of total consolidated revenue. Libeis is on plan, and United Recruitment is also on track with its revenue plan. 4. AdTech & Content Business: Revenue of 2.95 billion yen, operating profit of 91 million yen (0.091 billion yen), accounting for 44.9% of total consolidated revenue. United Marketing Technologies exceeded full-year operating profit plan as of the third quarter, International Sports Marketing is on plan, and Fogg missed plan due to underperformance of its online lottery business. Total consolidated revenue for the third quarter cumulative period is 6.557 billion yen, with an operating loss of 942 million yen (0.942 billion yen).

• Total consolidated revenue progress through the third quarter is 66% of the full-year plan, dragged by underperformance of Brewas and Fogg. The company will target reaching the full-year revenue guidance in Q4.
• Investment business is already ahead of full-year profit guidance as of the third quarter, and is expected to meet plan for full-year investment execution including the SHONAI investment.
• Bestco is on track to hit full-year performance guidance, with continued revenue growth expected for the full fiscal year.
• Brewas' refocus on app development is expected to drive future growth after the IT education business divestiture.
• United Marketing Technologies has already exceeded full-year operating profit guidance as of the third quarter.

• Investment business results are inherently volatile, driven by the timing and size of investee securities sales, leading to potential year-over-year performance fluctuations.
• The company missed the revenue progress target through the third quarter due to unplanned underperformance of Brewas' IT education business and Fogg's online lottery business, requiring additional effort in Q4 to hit full-year guidance.
• Fogg's content business continues to face negative impact from a previously lost large online lottery contract, leading to year-over-year revenue and profit decline.

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