Source disclosure: January 15, 2026
PROGRIT Inc. [9560.T]
TOKYO — Progrit Inc., represented by President and CEO Shogo Okada (stock code 9560 on the Tokyo Stock Exchange's Growth Market), reported its earnings presentation for the first quarter of fiscal year 2026 ending August 2026. CFO Ryota Tanuki was available to answer questions from shareholders and investors regarding the company’s performance.
When asked about future plans for international expansion, Okada stated that while tests will be conducted to explore potential opportunities abroad, the current focus remains on the domestic market due to Japan's significant linguistic market potential. The company aims to increase the number of individuals capable of thriving globally within Japan before considering further overseas ventures.
Regarding the slight increase in paid membership numbers for "Shadowten," excluding the impact of business-to-business contracts, Tanuki explained that there has been a steady influx of new members. However, some customers who initially sign up end up canceling shortly thereafter, which offset the growth seen during the previous quarter. As a result, the net effect in the first quarter showed only minor gains despite hundreds more subscriptions than previously recorded.
In response to inquiries about the rapid growth of "Spifull" and its competitive edge over rivals, Okada noted that the company prioritizes customer needs over direct comparisons with competitors. One key advantage is Spifull's AI evaluation feature for oral English composition tasks. Unlike traditional methods where deviations from model answers are penalized, Progrit's system accepts any response as long as it conveys meaning correctly, reducing user stress and encouraging continued usage. This approach appears to resonate well with users, contributing significantly to the service's popularity.
Tanuki also addressed concerns about increased marketing efforts by competitors through subway advertisements affecting Progrit's English coaching services. While acknowledging that such activities cannot be entirely dismissed, he maintained that their scale does not pose a substantial threat given the differences in overall business size and marketing budgets. Therefore, these measures do not have a material impact on Progrit's operations or profitability.
The company expects the number of English coaches to remain stable at around 161 to 170 by the end of August 2026, representing an increase of between 16 and 25 compared to the prior period. Despite this, demand-supply balance remains manageable without causing undue delays for prospective clients.
Looking ahead, Okada emphasized the goal of achieving sales of ¥1 trillion by 2035 while maintaining high profitability. He stressed that reaching this milestone would mark just the beginning of Progrit's mission to make meaningful contributions to society. Additionally, the company continually evaluates various shareholder benefits, including dividends, to ensure optimal returns based on prevailing conditions.
Okada concluded by reaffirming his commitment to fostering continuous innovation and bold transformation aimed at maximizing enterprise value and delivering returns to stakeholders.
Note: Financial figures from the earnings presentation have been removed pending correction. For accurate figures, refer to the company's earnings summary (kessan tanshin) filed separately on TDNet.
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