Riso Kyoiku Group Co., Ltd. (TSE: 4714) reported consolidated first-quarter results for the three months to May 31, 2026 (Q1 of the fiscal year ending February 28, 2027) under Japanese GAAP. Net sales rose 4.1% year-on-year to ¥7,403 million from ¥7,111 million, while the group narrowed its operating loss to ¥213 million from ¥599 million a year earlier. The ordinary loss shrank to ¥207 million from ¥588 million, and the net loss attributable to owners of the parent narrowed to ¥165 million from ¥383 million. The basic net loss per share improved to ¥0.97 from ¥2.25.
Seasonal first-quarter loss narrows sharply
The first quarter is structurally a loss-making period for Riso Kyoiku. The March–May window coincides with the start of Japan's academic year, when new-student enrolment is still building and tuition revenue has yet to reach its seasonal peak, even as the fixed costs of classrooms and teaching staff run year-round. Earnings for the tutoring business are heavily weighted toward the later quarters, around the intensive exam-preparation seasons. Against that backdrop, the story of the quarter is not the loss itself but how far it narrowed: the operating loss shrank by ¥386 million, or roughly two-thirds, year-on-year, and every profit line moved in the same direction.
TOMAS one-to-one model underpins steady top-line growth
Riso Kyoiku operates the "TOMAS" chain of fully individualized, one-to-one tutoring classrooms alongside related preparatory and cram-school brands. The 4.1% rise in net sales reflects steady demand for personalized instruction and the group's premium positioning at the upper end of Japan's private-education market. That model has helped Riso Kyoiku sustain top-line growth even as a shrinking school-age population pressures the wider tutoring industry, with the group leaning on higher-value, individualized services rather than volume.
Solid balance sheet with 50.5% equity ratio
Total assets stood at ¥20,446 million at the end of the quarter, with net assets of ¥10,396 million and an equity ratio of 50.5%. The balance sheet leaves the group solidly capitalized as it moves toward its seasonally stronger second half, when the bulk of full-year earnings is generated.
Full-year profit guidance and dividend left unchanged
Crucially, management left its full-year FY2/2027 forecast unchanged, and it points to a clear return to profit: net sales of ¥35,640 million (+4.1%), operating profit of ¥2,875 million (+6.3%), ordinary profit of ¥2,800 million (+2.5%) and net profit of ¥1,700 million (+5.2%), with EPS of ¥9.98. The group also reaffirmed a full-year dividend of ¥10.00 per share, payable as a ¥10.00 year-end distribution. The much narrower first-quarter loss keeps Riso Kyoiku on course toward those growth targets, with its profit-generating quarters still ahead.
| Metric | Q1 FY2/2027 | Q1 FY2/2026 | YoY |
|---|---|---|---|
| Net sales (¥m) | 7,403 | 7,111 | +4.1% |
| Operating profit/(loss) (¥m) | -213 | -599 | Narrowed |
| Ordinary profit/(loss) (¥m) | -207 | -588 | Narrowed |
| Net profit/(loss) attrib. to owners (¥m) | -165 | -383 | Narrowed |
| Basic EPS (¥) | -0.97 | -2.25 | — |
| Total assets (¥m) | 20,446 | — | — |
| Net assets (¥m) | 10,396 | — | — |
| Equity ratio | 50.5% | — | — |
| FY2/2027 net sales guidance (¥m) | 35,640 | — | +4.1% |
| FY2/2027 operating profit guidance (¥m) | 2,875 | — | +6.3% |
| Annual dividend per share (¥) | 10.00 | — | — |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.