Timee (215A, Corporate)
New services, new industries
Investment view
As the competitive environment has improved, we expect Timee’s initiatives across its existing business, as well as new services & industries, to support a growth re-acceleration.
Key points
- FY 10/25 sales were within revised guidance; weakness in food & beverage was offset by growth in logistics, retail, and social care. Operating profit finished near revised estimates and above the original outlook, reflecting 4Q hiring and marketing investments.
- Reduced competitive pressure enables a shift to an offensive growth strategy. FY 10/26 is positioned as a preparation phase, with strategic investment in HR expansion (field managers, care-sector sales, career advisors) and worker marketing ahead of a planned scaling phase in FY 10/27–10/30.
- FY 10/26 guidance is ranged. Upper case reflects stronger effects from field manager deployment at logistics clients, faster social care adoption, and successful PMI of SukimaWorks; lower case assumes weaker logistics demand, especially among small-to-mid sized firms, driven by industry deterioration.
- Mid-FY 10/26: launch of a long-term part-time hiring feature to address competition from job boards; workers gain wages and workplace experience while jobseeking, employers can hire based on on-the-job performance (reducing interview inefficiency).
- FY 10/27–10/30: target +20% sales CAGR and +30% OP CAGR via deeper industry-specific solutions, new services, and selective M&A.
Source: Company & Bloomberg (as cited in the report).
Financial snapshot
| Year end | 10/2023 | 10/2024 | 10/2025 | 4/2026E |
|---|---|---|---|---|
| Sales (¥bn) | 16.1 | 26.9 | 34.3 | 19.2–20.0 |
| OP (¥bn) | 2.0 | 4.2 | 6.7 | 3.1–3.7 |
| NP (¥bn) | 1.8 | 2.8 | 5.3 | 2.1–2.7 |
| EPS (¥) | 19.0 | 29.3 | 53.5 | 20.9–26.5 |
| Sales growth YoY (%) | 159.7 | 66.5 | 27.6 | n/a |
| OP growth YoY (%) | n/a | 117.0 | 58.9 | n/a |
| NP growth YoY (%) | 602.1 | 55.2 | 89.3 | n/a |
| EPS growth YoY (%) | n/a | 54.2 | 82.6 | n/a |
| PER (x) | n/a | 40.6 | 27.9 | n/a |
| EV/EBITDA (x) | n/a | 25.9 | 21.1 | n/a |
| PBR (x) | n/a | 12.7 | 10.3 | n/a |
| ROE (%) | n/a | n/a | 44.9 | n/a |
| ROIC (%) | 17.2 | 17.1 | 22.1 | n/a |
| FCF yield (%) | n/a | 0.9 | 1.5 | n/a |
| Dividend yield (%) | n/a | n/a | n/a | n/a |
Source: Company & Bloomberg (as cited in the report).
Earnings & outlook (highlights)
FY 10/25
Following the revision at 1–3Q results, FY sales finished within revised guidance. Food & beverage was pressured as restaurants restricted hiring budgets, while logistics, retail and social care sales grew robustly YoY. FY operating profit finished close to revised guidance and above the original estimate due to strategic 4Q hiring and marketing investment in preparation for FY 10/26 growth.
FY 10/26 (preparation phase)
With competitive pressure easing, Timee aims to shift from defence to attack, focusing on deeper penetration of existing industries (especially logistics) via initiatives like field managers and long-term part-time hiring support, alongside expansion into new industries and service lines. Guidance is ranged; the company expects slower OP growth in 1H due to strategic investments and an OPM improvement in 2H.
Cash flow (JPY millions)
Operating cash flow (selected line items)
| Operating CF | FY 10/22 | FY 10/23 | FY 10/24 | FY 10/25 |
|---|---|---|---|---|
| Interest paid | -13 | -33 | -61 | -114 |
| Income taxes paid | -10 | -12 | -159 | -2,068 |
| Others | 0 | -4 | -282 | -206 |
| Net cash provided by (used in) operating activities | -1,951 | -749 | 1,183 | 2,675 |
Investing cash flow
| Investing CF | FY 10/22 | FY 10/23 | FY 10/24 | FY 10/25 |
|---|---|---|---|---|
| Purchase of property, plant and equipment | -100 | -493 | -138 | -477 |
| Payments of leasehold and guarantee deposits | -287 | -64 | -146 | -166 |
| Refund of leasehold and guarantee deposits | 0 | 15 | 0 | 0 |
| Net cash used in investing activities | -387 | -541 | -284 | -1,280 |
Financing cash flow (selected line items)
| Financing CF | FY 10/22 | FY 10/23 | FY 10/24 | FY 10/25 |
|---|---|---|---|---|
| Net increase in short-term loans payable | 1,500 | 5,550 | 3,449 | 600 |
| Proceeds from long-term loans payable | 700 | 1,000 | 0 | 0 |
| Repayments of long-term loans payable | -198 | -1,249 | -200 | -143 |
| Proceeds from issuance of common shares | 52 | 0 | 97 | 143 |
| Proceeds from issuance of share acquisition rights | 5 | 8 | 0 | 0 |
| Net cash provided by financing activities | 2,059 | 5,306 | 3,343 | 582 |
| Net increase (decrease) in cash and cash equivalents | -279 | 4,015 | 4,242 | 1,976 |
Figures above reproduced from the report cash flow section.
Platform metrics (selected)
| Metric | Values (as shown in report) |
|---|---|
| # of Workers (Thousand) | 3,535 → 6,089 → 9,595 → 12,747 |
| Accumulated # of Workers with Active History (Thousand) | 323 → 771 → 1,382 → 2,010 |
| % of Core Workers out of Total # of Job Positions Filled | New: 20.0% → 14.0% → 11.0% → 9.0% / Occasional (1–7 times/month): 35.0% → 35.0% → 36.0% → 37.0% / Core (8+ times/month): 46.0% → 51.0% → 53.0% → 55.0% |
| # of Registered Client Accounts (Thousand) | 90 → 176 → 316 → 417 |
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Contact
Storm Corporate: +44 (0) 121 815 9426
Email: info@stormresearch.co.uk
Timee is a research client of Storm Research (as stated in the report).
Disclaimer
This report has been commissioned by Timee & prepared & issued by Storm Corporate in consideration of a fee payable by Timee. Information and data used has been compiled from publicly available sources believed to be reliable; however, accuracy or completeness is not guaranteed, and the information has not been independently verified. To the fullest extent allowed by law, Storm Corporate shall not be liable for losses, damages, costs, or expenses incurred or suffered arising from use of this report.