Visional Lifts FY7/2026 Revenue 24% as BizReach and HRMOS Grow, but Guides Net Profit Flat for FY7/2027

Revenue grew 23.9%, operating profit 14.6% — costs ran ahead of sales

Visional, Inc. (TSE: 4194), the group behind the BizReach job site that connects companies with experienced professionals and the HRMOS series of HR software, published consolidated results for the fiscal year from August 1, 2025 to July 31, 2026 on September 10, 2026 under Japanese GAAP. Revenue rose 23.9% to ¥99,300 million, operating profit 14.6% to ¥24,563 million, ordinary profit 17.5% to ¥26,700 million and profit attributable to owners of the parent 16.4% to ¥18,566 million, for earnings of ¥461.44 per share against ¥400.76. The year includes ten months of Thinkings, the applicant-tracking software company acquired on October 1, 2025.

The gap between the top line and the operating line comes from both cost lines growing faster than revenue. Cost of sales rose 47.9% to ¥10,741 million, so gross profit grew a slower 21.5% to ¥88,558 million and the gross margin eased from 90.9% to 89.2%. Selling, general and administrative expenses rose 24.4% to ¥63,995 million, fractionally faster than revenue, taking them from 64.2% to 64.4% of sales. Together the two moves cut the operating margin from 26.7% to 24.7%. The filing itemizes neither cost line; its business commentary mentions active advertising at BizReach and campaigns, led by television commercials launched in April 2026, for HRMOS's labour-administration service.

Below the operating line: penalty income, an impairment and a tax credit

Non-operating income almost doubled to ¥2,195 million from ¥1,311 million, and most of it was a single line, penalty income of ¥1,809 million against ¥903 million; the filing does not say where it came from. That is why ordinary profit grew faster than operating profit, at 17.5%. An extraordinary loss of ¥496 million, an impairment booked in the Incubation segment, then held pre-tax profit to ¥26,203 million, up 15.4%. Income taxes of ¥7,474 million were 28.5% of pre-tax profit against 29.2% a year earlier, and the company says the rise in net profit includes the effect of Japan's tax incentive for wage increases. Profit attributable to owners of the parent reached ¥18,566 million after ¥163 million attributable to non-controlling interests. Return on equity fell from 26.7% to 24.2% because equity grew faster than profit.

BizReach still carries the group; HRMOS grows faster and loses less

The HR Tech segment, which houses BizReach, HRMOS and the other HR services, lifted external revenue 21.9% to ¥93,807 million and segment profit 15.9% to ¥28,673 million. Within it, the BizReach business grew revenue 16.8% to ¥80,126 million — more than 80% of group revenue — and its operating profit before the allocation of head-office costs 16.5% to ¥33,093 million. The company attributes this to continued firm demand for hiring professionals and to active advertising, and reports growth in every indicator it tracks: more than 45,800 client companies to date (38,100 a year earlier), more than 9,500 headhunters (9,000) and more than 3.53 million members open to scouting (3.07 million).

The HRMOS business grew much faster from a much smaller base: revenue rose 78.2% to ¥9,289 million, and its operating loss before head-office cost allocation narrowed to ¥485 million from ¥769 million. Year-end ARR reached ¥10,337 million, up 177.0%, above the full year's revenue; paying client companies rose 341.9% to 10,699, while ARPU fell 37.3% to ¥80,520 and the twelve-month average churn rate was 0.48%. Those growth rates need their footnote: the current KPIs cover all HRMOS-related services and are compared with the combined figures for the three HRMOS services the company disclosed before, so part of each increase reflects a wider basket rather than like-for-like growth.

The Incubation segment — a logistics platform, an M&A platform for companies, the vulnerability-management cloud yamory and the Assured security-rating services — grew revenue 74.9% to ¥5,488 million, but its segment loss widened to ¥2,434 million from ¥1,691 million. The company says it funds hiring, product development and advertising there within the profit that HR Tech generates. The ¥496 million impairment also sits in this segment. Unallocated corporate costs were ¥1,676 million against ¥1,605 million.

Thinkings joins HR Tech — no new segment, but ¥9.2 billion of goodwill

Visional's subsidiary BizReach bought all of Thinkings, maker of the sonar ATS recruitment-management software, on October 1, 2025 for ¥13,999 million: ¥11,913 million in cash plus ¥2,086 million of contingent consideration that may still change. The deal created ¥9,228 million of goodwill, amortized over ten years, and ¥3,198 million of customer-related assets, amortized over fourteen. The segment structure is unchanged — Thinkings sits inside HR Tech, whose goodwill balance rose to ¥10,124 million from ¥1,550 million — and there is no restatement. Goodwill amortization charged to HR Tech more than doubled to ¥1,218 million from ¥549 million, a cost inside the segment's 15.9% profit growth. The company gives no pro-forma figures, saying the effect of a full-year consolidation would be immaterial.

A cash-rich balance sheet absorbed the deal

Total assets rose by ¥26,990 million to ¥122,396 million. Cash and deposits increased ¥10,069 million to ¥82,849 million, goodwill rose to ¥12,036 million and customer-related assets to ¥3,646 million. Liabilities of ¥35,572 million were led by contract liabilities — fees billed ahead of service — which rose ¥4,534 million to ¥16,660 million as BizReach signed more clients; long-term borrowings were only ¥156 million. Net assets reached ¥86,823 million and the equity ratio held at 70.3% against 70.5%.

Operating cash flow rose to ¥23,441 million from ¥19,587 million, after ¥7,253 million of income taxes paid. Investing outflows grew to ¥13,206 million from ¥3,658 million, of which ¥10,563 million was the net cost of buying subsidiaries and ¥1,184 million capital expenditure, leaving free cash flow of about ¥10,235 million. Financing used just ¥192 million.

Guidance: revenue up 20.7%, net profit flat, still no dividend

For FY7/2027 Visional forecasts revenue of ¥119,850 million (+20.7%), operating profit of ¥26,600 million (+8.3%), ordinary profit of ¥27,945 million (+4.7%) and profit attributable to owners of ¥18,569 million (+0.0%), or ¥458.64 per share against ¥461.44. It expects BizReach revenue of ¥92,940 million (+16.0%) and HRMOS revenue of ¥12,600 million (+35.6%), the latter reflecting continued product investment and active sales and advertising. The guided operating margin is about 22.2%, down from 24.7%. Ordinary profit implies non-operating gains of about ¥1,345 million against ¥2,137 million this year, and with no extraordinary items assumed, flat net profit implies taxes and minority interests taking about 33.6% of pre-tax profit against 29.1% — the company says only that taxes were calculated from its profit plan.

Visional paid no dividend for FY7/2025 or FY7/2026 and forecasts none for FY7/2027. Issued shares rose to 40,487,100 from 40,097,400 through the exercise of stock options, and the annual shareholders' meeting is scheduled for October 22, 2026.

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.