The 64th Annual ReportApril 1, 2025 - March 31, 2026

Regarding the social and economic environment during the current consolidated fiscal year, uncertainty persisted worldwide due to rising geopolitical risks and increasing protectionist policy trends. In Japan, although personal consumption showed signs of recovery supported by wage increases, the pace of post-COVID recovery slowed as the domestic economy was affected by external factors such as the global economic slowdown and additional U.S. tariffs, while inflation continued.

Amid such business conditions, fiscal year 2025 marked the final year of the Kumon Group’s Med-Term Corporate Plan “Innovation 2025” (2019-2025). Through group-wide initiatives, both domestic and overseas operations achieved total enrollments exceeding those of the previous fiscal year.

In the domestic Center business, the number of annual new enrollments has been increasing particularly around school advancement periods following the COVID-19 pandemic. Capturing this market trend, we expanded our student enrollment activities under the theme “Free Trial Campaign for School Advancement,” which contributed to an increase in enrollments among elementary school students. In addition, our renewed branding efforts improved recognition among prospective customers of Kumon as a “child-centered learning method that fosters academic ability and self-esteem.” Regarding Center openings, the number of newly opened Centers exceeded 200 for the first time in 24 years, contributing to maintaining the nationwide number of Centers, particularly in major metropolitan areas such as the Tokyo metropolitan area, Tokai, and Kansai.

As for Kumon Connect (KC), the tablet-based study program officially introduced in Japan in June 2024, the number of KC enrollments reached 52,131 (144.8% year on year), and the number of KC Centers reached 8,074 (184.8% year on year). The KC implementation rate rose to 54.3%, exceeding half of all Centers, and the number of Instructors with more than 100 KC students increased to 22 nationwide. In light of rising costs associated with recent social and economic changes, we will revise tuition fees effective April 2026 to improve the profitability of domestic Centers and correspondence course.

Regarding the overseas Center business, total enrollments across the five regions (North America, South America, Asia & Oceania, China, and Europe & Africa) reached 100.3% compared with December 2019, surpassing pre-COVID levels. As a result, total enrollments in the five regions plus the Middle East & Pakistan reached 1,238,053 (103.4% year on year), and the number of Centers reached 8,660 (103.3% year on year) in December 2025. KC was introduced overseas in January 2023, and three years after its launch, the number of KC students reached 264,151 (139.4% year on year), the number of KC Centers reached 7,058 (112.0% year on year), the KC implementation rate reached 81.5%, and the number of Instructors with more than 100 KC students reached 637. Regarding the Kumon Global Grading Center (KGGC), which began as a paid service for overseas Instructors in January 2025, the cumulative number of student users increased from 88,758 in January 2025 to 103,555 in December of the same year.

As a new initiative in the overseas Center business, we held the Global Students Conference in October 2025. This initiative originated from Kumon Student Conference, an in-person event held by Kumon North America in 2017, which later transitioned to an online format during the COVID-19 pandemic. The 2025 conference was jointly held by the regions of North America, South America, and Europe & Africa. Participation from the Asia region is planned for fiscal year 2026. By providing opportunities for Kumon students around the world to connect online, we aim to further enhance their motivation and support their continued growth.

Within the domestic group companies, Kumon Publishing Co., Ltd. has been working since fiscal year 2024 to rebuild its business foundation for sustainable operations and future growth. In fiscal year 2025, the company strengthened development in high-profitability areas, and its new product, the 3D Dot Art Maker, received the Excellence Award in the Educational Toys category of the 2025 Japan Toy Awards. The number of stores featuring the Kumon Square section exceeded 500, and sales at these stores reached 111.8% year on year. Overseas, the company began collaboration with retailers in Thailand, achieving orders more than double initial expectations, and expanded into Singapore and Malaysia. As a result, the company achieved its operating income target for fiscal year 2025.

Kumon Lifelong Integrated Learning Co., Ltd. worked to increase enrollments among junior high school students and adult learners, expand opportunities for Instructor recruitment, and strengthen organizational support for staff members. Enrollments from the three annual student events reached 121.6% year on year, indicating progress in attracting adult learners. The Senior Penmanship and Calligraphy Class, launched in fiscal year 2024, continued to grow, with more than 1,000 learners. For Instructor recruitment, increasing the number of video-based information sessions (in addition to in-person and online sessions) resulted in 129.0% year-on-year participation. As for organizational development, the company fostered unity among staff members and maintained zero turnover among new hires for three consecutive years, establishing a stable organizational foundation.

As part of our social contribution initiatives aligned with SDG Goal 4 (Quality Education for All) and Goal 17 (Partnerships for the Goals), we launched educational support activities in collaboration with Resona Bank, Ltd. through the new product Social Impact Deposit (nickname: Education Plus Deposit).

Since 1977, we have supported correctional education in certain juvenile training schools. Beginning in 2022, we have provided Kumon learning support for employment preparation at Kakogawa Gakuen in Hyogo Prefecture and Izumi Gakuen in Osaka Prefecture under commission from companies that employ and support the rehabilitation of youths after release. Starting in fiscal year 2025, we began learning support and research activities in collaboration with the Ministry of Justice at seven juvenile training schools in the Kansai region, aiming to develop a new model that integrates learning support with employment support.

In addition, through our sponsorship of “Tobitate! Study Abroad JAPAN,” a study-abroad support program operated by the Ministry of Education, Culture, Sports, Science and Technology in cooperation with private companies since 2015, we were awarded the Medal with Dark Blue Ribbon.

As a result of the developments described above, consolidated sales for the current fiscal year totaled 96,760 million yen, an increase of 2,721 million yen compared with the previous fiscal year (a year-on-year increase of 2.9%). Operating income totaled 15,603 million yen (a year-on-year decrease of 5.9%), ordinary income totaled 19,162 million yen (a year-on-year increase of 14.6%), and net income attributable to shareholders of the parent company totaled 13,324 million yen (a year-on-year increase of 13.3%). The decrease in operating income was mainly due to increased advertising expenses. The increase in net income attributable to the shareholders of the parent company was due mainly to foreign exchange gains resulting from the depreciation of the yen, whereas the previous fiscal year saw foreign exchange losses due to yen appreciation.

As of March 31, 2026, the number of students worldwide totaled 3.553 million, a decrease of 17,000 from the previous fiscal year, while the number of students at overseas consolidated subsidiaries increased by 25,000 from the previous year to 1.256 million.

Kumon Institute of Education Co., Ltd.

Representative Director and President Mitsunori Tanaka