Summary

Linkbal Inc. is a company that operates in the dating and matchmaking support sector under the mission “Creating opportunities to meet.” Its core services include “machicon JAPAN,” an online platform offering group dating (“machicon”) events across Japan, and the matchmaking app “CoupLink.” The company’s customer base exceeds 2.6 million users. Its business model is built on revenue from event listings, subscription fees from paid members, and usage fees from its café lounge service “1on1 for Singles.”

Linkbal is working to enhance customer satisfaction by developing AI-powered matching features and promoting communication among participants. Its operations are divided into two segments: “Event EC Site Operations” and “Web Site Operations,” with “machicon JAPAN” accounting for approximately 70% of total revenue. The company has established a strong position in the dating and matchmaking event market, strengthening its competitive advantage through diversified regional event planning and the adoption of AI technologies.

In recent years, the dating services market has been rapidly evolving due to trends such as delayed marriage and increasing singlehood, requiring Linkbal to further advance its digital matching services. For FY2023, the company recorded revenue of 891 million yen, representing a 116.5% year-on-year increase, although it posted a net loss of 266 million yen. The income statement shows cost of sales at 683 million yen, resulting in a high cost ratio of approximately 76.7%. While operating loss improved to 249 million yen, rising SG&A expenses have weighed on profitability.

On the balance sheet, current assets account for 78% of total assets, with cash and cash equivalents reaching 11.5 billion yen, indicating low financial risk. However, the cash flow statement shows a decrease of 121 million yen in operating cash flow, reflecting ongoing operating losses.

Under its medium-term management plan, Linkbal aims for growth through the introduction of AI technologies and expansion of new locations, with a particular focus on human resource strategy and governance enhancement. The company is committed to achieving sustainable growth by improving customer satisfaction and strengthening competitiveness.

1. Overview of FY2023 Performance

In FY2023, Linkbal Inc. achieved revenue of 891 million yen, marking a 116.5% increase year-on-year. This recovery was driven by improving customer demand and the introduction of new services. Revenue is projected to reach 968 million yen in FY2024. In particular, increased user numbers on platforms such as “machicon JAPAN” and “CoupLink” contributed to performance improvement.

However, the company recorded a net loss of 266 million yen in FY2023. Although operating loss improved to 249 million yen, profitability remains a challenge. The current ratio exceeds 150%, and cash equivalents total 11.5 billion yen, ensuring financial stability.

The income statement shows cost of sales at 683 million yen, with a cost ratio of approximately 76.7%, indicating persistently high costs that are pressuring margins. An operating loss of 289 million yen highlights the need for structural improvements in profitability.

On the balance sheet, current assets account for 78% of total assets, and while the equity ratio is high, long-term liabilities require ongoing monitoring. The cash flow statement shows a decrease of 121 million yen in operating cash flow, raising concerns about weakening internal cash reserves.

Overall, while Linkbal shows signs of recovery, it must respond flexibly to a changing competitive environment and internal/external conditions. Continuous improvement efforts will be essential, and investors should closely monitor these developments when assessing the company’s future potential.

2. Outlook for the Fiscal Year Ending September 2025

For the fiscal year ending September 2025, Linkbal forecasts revenue of 909 million yen and expects to return to operating profitability, although ordinary profit is expected to remain under pressure.

The company anticipates revenue growth driven by recovering customer demand and the launch of new services. It also projects revenue of 968 million yen in FY2024, supported by efforts to re-engage existing customers and acquire new users.

However, operating cash flow remains negative, making improvements in cash management an urgent priority. While the current ratio remains above 150%, ensuring short-term liquidity, long-term debt management remains an important consideration.

As AI adoption and new location expansion progress, the ability to respond flexibly to changes in the competitive landscape will be critical for growth. Investors should focus on whether the recovery in performance can be sustained and stabilized. In particular, improvements in profit margins and the development of new revenue streams will play a key role in future growth.

3. Medium- to Long-Term Growth Strategy

Linkbal Inc. has formulated a medium-term management plan centered on its mission of “Creating opportunities to meet,” aiming to develop a platform that integrates online and offline experiences. The strategy focuses on three core businesses: “machicon JAPAN,” “CoupLink,” and “1on1 for Singles.” By the fiscal year ending September 2025, the company aims to establish new customer acquisition channels and achieve quarterly profitability.

The adoption of AI technology is a key pillar of its growth strategy, enhancing efficiency and accuracy in both matching applications and event platform operations. Linkbal also plans to further segment its services to meet diverse customer needs and enhance offline experiences through the expansion of new physical locations.

Additionally, the company aims to create new user experiences by strengthening integration across its services, thereby improving customer satisfaction. In terms of human resources, securing and developing specialized talent is a top priority, alongside implementing systems that support diverse working styles.

Furthermore, Linkbal is working to establish a transparent governance structure, improve risk management, and enhance operational efficiency to achieve sustainable corporate value growth. Through these initiatives, the company aims to respond flexibly to market changes and realize long-term growth. Investors are encouraged to monitor the progress of these initiatives and evaluate the company from a long-term perspective.

・ In FY2023, Linkbal achieved revenue of 891 million yen (+116.5% YoY), but recorded a net loss of 266 million yen. While financial stability is maintained, high costs continue to pressure profitability.

・ For the fiscal year ending September 2025, revenue is forecast at 909 million yen, with expectations of returning to operating profitability, although ordinary profit is likely to remain challenging.

・ Linkbal has established a medium-term management plan aimed at integrating online and offline matchmaking platforms and achieving quarterly profitability by FY2025.

Business Overview

1. Overview of the Business Model

Linkbal Inc. is a company that operates a wide range of dating and matchmaking support services under its mission, “Creating opportunities to meet.” Established in 2011, its core services targeting singles are “machicon JAPAN” and “CoupLink.” “machicon JAPAN” functions as an e-commerce platform that provides access to group dating (“machicon”) events across Japan, allowing users to easily search for and apply to events online.

Its business model primarily consists of revenue from event listings, subscription fees from paid members, and usage fees from its café lounge service “1on1 for Singles.” A notable feature is its integration of online and offline matchmaking, offering users a multifaceted experience. Linkbal has a customer base of over 2.6 million members, which also enables strong repeat-user effects through its events.

The company has introduced AI-powered matching functions and systems that promote communication among event participants, aiming to enhance user experience. By improving customer satisfaction while maximizing revenue, Linkbal has developed a strategy that goes beyond simply providing meeting opportunities, offering diversified services tailored to customer needs and strengthening its competitiveness in the market.

2. Main Business Segments

Linkbal’s business is broadly divided into two segments: “Event EC Site Operations” and “Web Site Operations.” “machicon JAPAN” serves as the core event e-commerce platform and accounts for approximately 70% of total revenue. It offers a wide range of information on dating and matchmaking events, allowing users to select events based on their individual preferences.

The web site operations segment includes “KOIGAKU” and “CoupLink.” “KOIGAKU” is a media platform providing relationship-related content for both men and women, generating advertising revenue. Meanwhile, “CoupLink” operates as a matchmaking app, with subscription fees from registered users as its primary revenue source.

These services are interconnected with event operations, creating synergies that expand the user base through effective marketing strategies. By diversifying its businesses related to matchmaking, Linkbal enhances revenue stability. Flexibly responding to customer needs and expanding its services are key drivers of the company’s growth.

3. Market Position and Competitive Advantage

Linkbal has established a strong position in the dating and matchmaking event market. In particular, the large number of participants on “machicon JAPAN” and the diversification of region-specific event planning contribute to its competitive advantage. As competition intensifies, the company’s ability to respond in detail to the needs of different regions and age groups helps build customer trust.

Additionally, Linkbal enhances the quality of its matching services through the adoption of AI technologies. By analyzing participant compatibility and enabling more accurate matches, the company strengthens user experience. It has also implemented measures to reduce customer concerns regarding safety and privacy protection, contributing to increased customer loyalty.

Furthermore, Linkbal improves customer acquisition efficiency and creates new market opportunities through partnerships with major corporations. These alliances enable resource sharing, cost reductions, and multifaceted marketing initiatives, further strengthening its competitive advantage.

4. Market Background

In recent years, the dating services market has undergone rapid changes due to trends such as delayed marriage and increasing singlehood. In Japan, as demand for meeting opportunities continues to grow, not only traditional offline events but also online matching services have diversified rapidly. There is increasing demand for services that cater to a wide range of age groups and lifestyles, not limited to those specifically seeking event participation.

Against this backdrop, Linkbal is expected to evolve beyond simply providing events and further develop its digital matching services. The adoption of AI and data analytics has become a critical factor in enhancing corporate competitiveness, and Linkbal is actively leveraging these technologies to improve operational efficiency and service quality.

As competition in the market intensifies, the ability to quickly adapt to changing customer needs is essential for survival. How Linkbal responds to these changes and achieves further growth will be a key point of focus.

5. Future Strategy and Growth Potentia

Linkbal places strong emphasis on advancing its AI business as part of its future growth strategy. The development of AI systems by its subsidiary, MiDATA Inc., is expected to improve matching accuracy and enhance operational efficiency. The company is also actively engaged in joint research with universities and research institutions to propose new business models.

In addition, further segmentation of services based on customer needs and the expansion of new “1on1 for Singles” locations are expected to enhance offline experience value and prevent churn among existing customers. These initiatives are likely to expand the potential customer base and strengthen the company’s revenue foundation.

Compliance with regulations and the establishment of transparent governance are essential for building social trust and will remain critical in an increasingly competitive market environment. A strategic approach that balances sustainable growth with the enhancement of shareholder value is required.

Looking ahead, attention will focus on how Linkbal achieves further growth in the market and how its new services under development are received. Maintaining and strengthening competitiveness in the matchmaking business will be essential to the company’s continued success.

Performance Trends

1. Overview of Recent Performance

Linkbal Inc. is a company that provides services centered on the dating and matchmaking business, operating platforms such as “machicon JAPAN” and “CoupLink.” Looking at its performance trends, although revenue declined significantly in 2020 due to the impact of the COVID-19 pandemic, it subsequently recovered to reach 891 million yen in FY2023, representing a 116.5% year-on-year increase. This improvement is attributed to the recovery in customer demand and the introduction of new services.

Recent revenue has shown a continued recovery trend, with projections indicating 968 million yen in FY2024. Efforts to re-engage existing customers and acquire new users have also contributed to improved performance. Meanwhile, the company recorded a net loss of 266 million yen in FY2023; however, the reduction in losses is a positive sign. Operating loss also improved to 249 million yen, indicating gradual progress in structural reforms. In terms of liquidity, cash and cash equivalents reached 11.5 billion yen, ensuring financial stability.

This recovery has been supported in part by the growing demand for online dating services. While investors may view the growth trajectory positively, it remains important to monitor the company’s strategies for achieving sustained profitability improvements.

2. Analysis of the Income Statement

An analysis of Linkbal’s income statement provides insight into changes in revenue, profit margins, and cost structure. For FY2023, revenue totaled 891 million yen, while cost of sales amounted to 683 million yen, resulting in a high cost ratio of approximately 76.7%. The year-on-year increase of approximately 192.8% in cost of sales reflects the expenses associated with hosting events and operating online platforms.

Although gross profit exceeded 688 million yen, profit margins have been declining. The primary reason for this decline is the increase in SG&A expenses, with operating costs rising by 69% year-on-year. Persistently high costs present a major challenge for improving profitability.

In terms of operating income, the company recorded an operating loss of 289 million yen, raising concerns about its earnings structure. While the introduction of new services and improvements in operational efficiency are urgently needed, strengthening the management PDCA cycle will be critical in an increasingly competitive market.

For investors, the progress of cost control measures and initiatives to restore profit margins will be key factors influencing future growth.

3. Analysis of the Balance Sheet

As of September 2023, Linkbal’s total assets stood at 11.6 billion yen, with current assets accounting for 78% of the total. Notably, cash and cash equivalents reached 11.5 billion yen, indicating low financial risk. This high level of liquidity also contributes to maintaining customer trust.

Current liabilities have been increasing, and the debt ratio has risen slightly. However, interest-bearing debt remains low at 160 million yen compared to shareholders’ equity of 970 million yen, resulting in a highly stable capital structure. The current ratio exceeds 150%, indicating strong short-term solvency. Nevertheless, from a long-term perspective, monitoring liabilities remains necessary.

The company’s capital policy in recent years, including stable capital of 279 million yen and capital surplus of 276 million yen, is commendable. However, investment in new businesses and capital expenditures will be required to support future growth. Maintaining high liquidity while ensuring efficient fundraising will be crucial for executing these strategies.

4. Analysis of the Cash Flow Statement

An analysis of the cash flow statement shows that operating cash flow decreased by 121 million yen at the end of FY2023. The main factors include a decline in profit before tax and an increase in accounts receivable, which has affected cash allocation. This situation suggests that continued operating losses are weakening internal cash reserves.

In investing activities, approximately 3.3 billion yen in cash outflows was recorded, reflecting investments in new services and growth initiatives. The future outlook of these investments will be important; if successful, they could contribute to future growth.

In financing activities, a cash outflow of approximately 303 million yen was recorded due to repayments of long-term borrowings, highlighting the need for improved cash flow management going forward.

Overall, improvements in operating income are expected to contribute significantly to cash flow. Measures to secure stable cash generation, particularly through operational improvements, will be critical.

5. Analysis of Performance Indicators

An analysis of key performance indicators such as ROE (Return on Equity), ROA (Return on Assets), and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reveals several areas of concern. In particular, ROE has remained negative in recent years, and it is essential to avoid further negative cycles through FY2023–FY2024. This underscores the urgent need for improvements in the earnings structure and long-term growth strategies.

EBITDA also reflects ongoing operating losses, indicating that the company struggles to generate profits without extraordinary gains. Improving these indicators is essential for corporate growth, and strengthening initiatives for core services and platforms will be necessary to establish sustainable profitability.

Overall, while Linkbal’s performance trends indicate recovery, the company must remain flexible in responding to changes in both the competitive environment and broader market conditions. Continuous improvement efforts will be essential, and investors should closely monitor these trends when evaluating the company’s future potential.

Medium-Term Management Plan and Growth Strategy

1. Importance of Management Philosophy and Mission

Linkbal Inc. upholds a clear mission—“Creating opportunities to meet”—which serves as the foundation of its management. This mission goes beyond the pursuit of business alone, reflecting a commitment to addressing social challenges and enhancing people’s well-being. By fostering a shared understanding among all employees, the company cultivates a strong corporate culture and builds a solid framework for achieving long-term strategic goals.

For investors, companies that aim for sustainable growth are often valued for emphasizing social responsibility and maintaining long-term corporate value. Accordingly, Linkbal’s focus on social trust and compliance contributes to enhancing corporate value, making these efforts important points for investor attention.

2. Development of Medium- to Long-Term Management Strategy

In its medium-term management plan, Linkbal focuses on three core businesses—“machicon JAPAN,” “CoupLink,” and “1on1 for Singles”—to develop a matchmaking platform that integrates online and offline experiences. This strategy is particularly important for establishing a competitive advantage in Japan’s diverse and active dating market.

By the fiscal year ending September 2025, the company aims to establish new customer acquisition channels and achieve quarterly profitability for the first time in approximately five years, signaling a business turnaround. Going forward, strengthening customer acquisition engines and building an ecosystem strategy will be essential. Investors should closely monitor and evaluate the execution and outcomes of this plan.

3. Establishing Growth Engines and Utilizing AI

A key pillar of Linkbal’s growth strategy is its strong reliance on AI technology. In the operation of matching apps and event platforms, AI plays a critical role in improving efficiency and accuracy. The use of AI-driven matching engines is expected to enhance safety and provide differentiation from competitors.

Establishing a competitive advantage in the rapidly growing AI market is directly linked to sustainable corporate growth. Therefore, investors should closely observe the progress of these initiatives and market responses to them.

4. Strengthening Revenue Base and Optimizing Operations

To respond flexibly to changes in the business environment and achieve sustainable growth, Linkbal aims to create new user experiences by strengthening integration across its services. The company plans further growth investments to accelerate the expansion of “machicon JAPAN.”

Specifically, it intends to expand the range of events, improve advertising efficiency, and increase overall platform traffic to attract new users. Investors should pay close attention to how these initiatives translate into financial performance.

5. Talent Management Supporting Sustainable Organizational Growth

Human capital is the most critical factor determining corporate competitiveness, making the recruitment and development of specialized talent a top priority in Linkbal’s medium-term management plan. The company is enhancing systems to support diverse working styles, aiming to maximize employee potential.

Strengthening human resource strategies directly contributes to overall corporate growth and sustainable performance improvement, making it a key consideration for investors. Additionally, investment in training and development is expected to enhance technical capabilities and improve market competitiveness.

6. Strengthening Governance and Ensuring Transparency

Enhancing internal control systems and corporate governance is essential for increasing sustainable corporate value. Linkbal is strengthening its efforts to establish a transparent governance framework while improving risk management and operational efficiency.

For investors, transparent corporate management is crucial, particularly in the context of new business models and business expansion. Effective governance plays a key role in ensuring long-term investment stability.

7. Future Outlook and Challenges

Linkbal’s medium-term management plan emphasizes the use of AI technologies and the strengthening of a business model aligned with the diversification of matchmaking opportunities. These initiatives are expected to support sustainable growth.

However, investments inherently involve risks, and in an increasingly competitive market, it is essential to maintain a sustainable competitive advantage. Evaluating how future results will impact corporate value is an important consideration for investors.

Overall, Linkbal’s medium-term management plan and growth strategy encompass a range of initiatives designed to achieve efficient and sustainable growth. In particular, the adoption of AI, talent development, and transparent governance structures are expected to contribute to future performance improvements. Investors are encouraged to monitor the progress of these initiatives and assess the company’s growth from a long-term perspective.

News & Topics

1. Initiatives to Strengthen Growth Strategy

Linkbal Inc. has experienced rapid growth in the matchmaking business domain, with particular attention on its singles-focused events organized through “machicon JAPAN.” In 2023, the company also expanded into the online dating market, further pursuing growth by developing its matching app “CoupLink” and café lounge service “1on1 for Singles.” Through these efforts, the company is expected to provide high-quality, high-value-added services and tap into new customer segments.

According to expert analysis, the establishment of its AI-focused subsidiary, MiDATA Inc., represents a significant step toward accelerating growth in terms of risk management and technological innovation, while also enhancing customer experience. Such initiatives are likely to be key in securing long-term competitive advantages in the increasingly competitive matchmaking industry.

From an investor perspective, this growth strategy is expected to diversify revenue streams over the medium to long term and stabilize earnings through new customer acquisition. However, differentiation from competitors remains critical, requiring effective marketing and branding strategies.

2. Expansion of New Locations and Enhancement of Customer Experience

In 2023, Linkbal opened new “1on1 for Singles” locations in Shinjuku and Ebisu. These café lounges have attracted attention as venues that directly facilitate in-person interactions, offering users a real-life experience. The expansion of these locations is expected to enhance brand recognition and contribute to improved customer satisfaction.

This new store format provides value beyond that of traditional matching apps, improving customer touchpoints and overall experience. It also enables the company to refine service quality based on customer feedback, making it a key initiative for the next stage of growth.

For investors, this expansion supports brand strengthening and revenue base diversification, with expectations for new customer acquisition and enhanced customer loyalty. However, it is also important to consider risks such as initial investment costs and intensifying competition for customer acquisition.

3. Recovery in Revenue and Profitability

By the fiscal year ending September 2025, the company showed signs of recovery from a prolonged period of losses, achieving quarterly profitability. This improvement was driven by promotional initiatives and advertising strategies aimed at acquiring new customers. In particular, proprietary events organized through “machicon JAPAN” played a key role in attracting new customer segments. Revenue reached 909 million yen, marking a 6.4% year-on-year increase.

This recovery demonstrates the effectiveness of the company’s management strategies and provides a clearer path toward achieving sustainable profitability. Experts note that continued growth will require further promotional efforts and enhanced customer management, particularly in a highly competitive market where differentiation is essential.

From an investor standpoint, the significant reduction in operating losses is a positive signal, raising expectations for sustained profit growth. However, appropriate strategies will be needed to manage revenue volatility and changes in the competitive environment.

4. Talent Acquisition Initiatives and Human Resource Strategy

Securing talented personnel is essential for corporate growth. Linkbal has demonstrated a commitment to recruiting diverse talent and improving the workplace environment. In particular, initiatives to enhance working conditions and employee benefits are seen as key factors in strengthening competitiveness. Efforts to promote women’s participation in the workforce and encourage parental leave are also expected to have positive effects on the business environment.

Experts suggest that maintaining strong labor-management relations and establishing robust evaluation systems will further support corporate growth. Attracting top talent enhances competitive advantage and drives innovation, making initiatives in this area critical for future growth.

For investors, a strong human resource strategy is a key indicator of sustainable growth potential. Monitoring how talent acquisition initiatives enhance competitiveness, as well as ensuring transparency in HR-related disclosures, will be important.

5. Risk Management and Compliance

Linkbal recognizes various risks associated with its business operations and is working to strengthen its risk management framework. Rapid responses to changes in the competitive environment and evolving internet-related regulations are directly linked to business performance, making compliance and transparency essential.

In particular, the protection of personal information and the stability of payment systems are critical risk factors. Ensuring transparency enhances credibility and provides reassurance to investors. As dependence on specific platforms increases, robust risk mitigation measures will be required.

From an investor perspective, strengthening risk management systems is expected to improve corporate stability and support sustainable growth. A clearly defined risk management roadmap could also facilitate fundraising and new investments.

6. Dividend Policy and Shareholder Returns

Although Linkbal has not paid dividends to date, it intends to introduce shareholder return measures in line with stable growth in the future. While the timing remains undecided, the company aims to build sufficient retained earnings to enable dividend payments over the long term. This policy is an important component of enhancing corporate value and contributes to a long-term strategic perspective.

Experts point out that introducing shareholder return policies can strengthen relationships with investors and improve corporate credibility. At the same time, it is essential to carefully consider the impact of dividend payments on financial stability.

For investors, shareholder return policies are often seen as a signal of corporate growth, making future developments in this area an important point of interest. The introduction of dividends could help secure investor support and further enhance corporate value.

Overall, Linkbal is expanding a diverse range of services and aiming to establish new business models leveraging AI technology. Its focus on improving customer satisfaction and achieving sustainable growth, while building a competitive advantage in a challenging market environment, is noteworthy. With continued expansion through AI initiatives and new locations, the company is well-positioned for further growth, making it an increasingly attractive prospect for investors.

Company Overview

1. Basic Information

Linkbal Inc. (LINKBAL INC.) is a company established in 2011 and headquartered in Akashicho, Chuo City, Tokyo. Since its founding, it has adopted a business model focused on facilitating connections, offering a wide range of services centered on group dating (“machicon”) and matchmaking events.

President and CEO Kazumasa Yoshihiro has positioned the company’s mission as creating new forms of encounters through “experience-based consumption,” aiming to expand the business while simultaneously addressing social challenges. Linkbal’s services include the machicon EC platform “machicon JAPAN,” the online matching app “CoupLink,” the couples app “Pairy,” the relationship media platform “KOIGAKU,” and the singles café “1on1 for Singles.” Its membership base currently exceeds 2.8 million users.

As the company grows, it has also deepened collaboration with local communities and strengthened partnerships with major corporations and local governments, continuously enhancing its competitive advantage as an organization.

2. Business Activities and Service Diversity

Linkbal’s business structure is highly diversified, providing services that address a wide range of needs related to matchmaking. In particular, “machicon JAPAN” is highly regarded as an EC platform that comprehensively covers dating and matchmaking events for singles.

From an information perspective, “KOIGAKU” delivers relationship-related content, particularly targeting adult women, enhancing user value through information dissemination. “CoupLink,” which specializes in online matching, “Pairy,” which supports couples’ lifestyles, and “1on1 for Singles,” which promotes in-person encounters, each target different customer segments.

Through this diversified approach, Linkbal simultaneously improves customer satisfaction and strengthens user acquisition.

3. Organizational Structure and Management Team

Linkbal’s management is supported by a lean and efficient organizational structure. CEO Yoshihiro demonstrates strong leadership, and with support from experienced stakeholders, the company has achieved steady growth.

Director Matsuoka oversees human resources and corporate planning, contributing to the formulation and execution of management strategies, with a particular focus on strengthening organizational structures. Meanwhile, Takahashi, a technology specialist, leads the platform business division and continuously implements measures to enhance user experience.

The company has a compact team of 48 employees, characterized by an open corporate culture where opinions are easily reflected in decision-making. This flexible structure enables swift management decisions and rapid responses to market changes.

4. History and Key Milestones

Linkbal’s history began with the launch of “machicon JAPAN” in 2011, marking the start of its growth and evolution. In 2012, the company introduced a refund guarantee system for event participants, enhancing customer trust.

In 2015, it was listed on the Tokyo Stock Exchange Mothers market. In 2018, it introduced the unified membership ID “Linkbal ID,” improving service usability. In 2021, the company relocated its headquarters, and in 2022, it transitioned from the Mothers market to the Growth market.

Notably, in 2023, Linkbal launched the singles café “1on1 for Singles” and established the AI system development company “MiDATA.” These initiatives highlight the company’s focus on leveraging new technologies, which is a key point of interest in the market and is expected to play an important role in its future growth strategy.

5. ESG and Sustainability Initiatives

Linkbal places importance on social responsibility and environmental considerations, actively engaging in ESG (Environmental, Social, and Governance) initiatives. As a company that provides opportunities for people to connect, it is committed to contributing to a sustainable society.

In particular, by strengthening ties with local communities, the company enhances the quality of matchmaking opportunities while revitalizing communities. Its ongoing commitment to developing new services also supports competitiveness, customer satisfaction, and social contribution.

The company’s vision reflects a strong commitment to responding flexibly to societal challenges, making it an attractive aspect for investors.

6. Current Performance and Challenges

Currently, Linkbal’s performance shows revenue of 838,673 thousand yen in FY2025, representing a decline from the previous fiscal year, while ordinary losses have expanded. This situation indicates the need to reassess resource allocation in response to changes in the market environment, intensifying competition, and broader economic conditions.

Although the equity ratio remains high at 72.8%, maintaining operational stability alone is insufficient; improving profitability and implementing growth strategies are urgent priorities. For investors, this represents a phase where attention is focused on restoring profitability and identifying new growth drivers.

Linkbal is expected to achieve sustainable growth through the development of new markets and the utilization of digital technologies. Going forward, the company will need to ensure management transparency while formulating and executing plans based on concrete results. By building trust with customers and maintaining financial stability, its commitment to further growth will continue to attract strong interest from investors.

Shareholder Returns

1. Fundamental Philosophy of Shareholder Returns

Shareholder returns are an important indicator of how a company distributes its profits to shareholders. Since its establishment, Linkbal Inc. has maintained a firm stance of not paying dividends. However, as corporate growth and shareholder returns are closely linked, expectations are rising regarding its future policies and outlook for shareholder returns. Profit distribution is widely recognized as a means of building shareholder trust and enhancing shareholder value, and Linkbal emphasizes this significance while maintaining a long-term profit-oriented approach.

From a professional perspective, returning profits through dividends can serve as a way to gain stronger support and stability from shareholders. Particularly for growth companies, investment and growth strategies tend to consume significant resources, making it important to prioritize internal growth first. Although the company keeps future dividend implementation in view, its current priority is business expansion and technological development.

For investors, the key point to watch is the concrete implementation of shareholder return measures in the future. In particular, there is growing anticipation that dividend policies may be reviewed in line with the progress of growth strategies. As the company grows, returning the results of that growth to shareholders is expected to further strengthen trust.

2. Dividend Policy and Its Background

Linkbal’s dividend policy places emphasis on business growth and the strengthening of a sustainable management foundation. At present, there is no indication of dividend payments, and growth strategies supported by retained earnings are prioritized. In a competitive and evolving market environment, the decision not to implement fixed dividends and instead reinvest surplus capital into growth is viewed as a cautious and strategic choice.

This policy reflects a strong focus on long-term growth, alongside a recognition that dividend implementation requires careful evaluation. While valuing shareholder returns, the company seeks to balance this with the need to preserve resources for strengthening its business base and developing new services. This approach forms the foundation for maximizing shareholder value.

Investors should focus on how the dividend policy aligns with the company’s growth strategy and consider shareholder return measures from a long-term perspective. While future dividends are anticipated, flexibility in dividend policy in response to strategic and market developments will also be important.

3. Current Status and Significance of Share Buybacks

Linkbal has taken a very conservative stance toward share buybacks. It has not conducted buybacks based on special resolutions or board decisions, meaning that short-term shareholder return effects through this method have not been realized. Share buybacks are commonly used as a shareholder return measure, contributing to stock price support and improved liquidity over the medium to long term.

However, Linkbal has chosen to allocate internal resources toward new business development and human capital investment. While this approach does not prioritize short-term shareholder returns, it is a rational choice aimed at achieving sustainable growth. By focusing on building a strong foundation for growth, the company aims to enable shareholder returns in the medium to long term.

For investors, the key question is whether the absence of share buybacks will contribute to strengthening the company’s long-term earnings base and how this decision will impact overall value. Although short-term return measures are limited, prioritizing long-term growth may create potential upside in share price. Evaluating this balance is critical for investor expectations.

4. Relationship Between Shareholder Returns and Corporate Value

Corporate growth is directly linked to shareholder returns, as growing companies generate greater profits that can be distributed to shareholders. In this context, Linkbal is pursuing growth strategies in the AI market, aiming to enhance corporate value and ultimately enable shareholder returns.

By establishing a competitive advantage, the company can achieve sustained profit growth, which in turn opens the path to shareholder returns. This is particularly relevant in the AI sector, where Linkbal is focusing its efforts. The profits generated from growth are expected to be returned to shareholders over time.

From an investor perspective, it is essential to evaluate how the company’s growth trajectory contributes to shareholder returns. As growth leads to shareholder returns, it is also expected to drive long-term corporate value enhancement. Investors should therefore pay close attention to how the company’s growth strategy translates into tangible returns for shareholders.

5. Communication with Shareholders

Effective communication is essential for maintaining strong relationships between a company and its shareholders. Linkbal is strengthening its investor relations (IR) activities and placing importance on dialogue with shareholders. This enhances the provision of information regarding growth potential and future prospects, thereby strengthening trust.

Greater transparency in information disclosure is key for investors to better understand the company’s shareholder return policies and growth strategies. Accurate communication is particularly important when discussing future dividend implementation and shareholder return measures. For shareholders, such information is critical for making informed investment decisions, while the company must demonstrate its commitment to meeting shareholder expectations.

Investors should recognize that the quality of communication significantly impacts corporate value and the stability of the shareholder base. As shareholder return measures are implemented in the future, the importance of communication will continue to increase. Strengthening this relationship will be essential for building trust.

 6. Shareholder Returns as a Medium- to Long-Term Policy

Linkbal’s shareholder return policy is closely tied to its growth-oriented corporate strategy, with the potential for future dividend implementation. The company has consistently taken a cautious stance toward short-term returns, prioritizing the strengthening of its business foundation. This reflects a long-term perspective and is considered a necessary process for maximizing shareholder value.

This approach is expected to lead to sustainable shareholder returns over time. As the company grows and profits increase, it will become possible to return those profits to shareholders, highlighting the importance of a long-term outlook. In particular, in the high-growth AI market, the relationship between corporate strategy and shareholder returns will become increasingly significant.

Investors should closely monitor the progress of the company’s growth strategy and how it contributes to shareholder returns. It will also be important to identify the timing at which the company may formally announce dividend payments as part of its long-term profit distribution policy.

Overall, Linkbal’s approach to shareholder returns is based on strategic decision-making aligned with clear growth objectives. At the same time, flexibility will be required to adapt to future market conditions. Through transparent communication and a focus on sustainable growth, the company aims to build trust with shareholders, and investors should carefully monitor how its evolving performance may eventually shape its shareholder return policies.

Business Risks

1. Risks Related to Market Environment

2. Industry-Specific Risks

Due to the nature of the matchmaking business, Linkbal faces various regulatory and personal data protection risks. As the company collects personal information from users, concerns over data breaches and misuse are heightened, making it essential to maintain customer trust. Strict compliance with data protection laws is an unavoidable requirement for the company’s operations.

Additionally, the operation of such services carries risks of misconduct and user-related issues, necessitating robust monitoring systems to ensure user safety. This requires sufficient resource allocation, as well as regular audits and system reviews.

External factors such as natural disasters may lead to event cancellations, while increasing competition makes differentiation more challenging. Under these conditions, Linkbal must both build trust with customers and address legal and ethical risks. Investors should recognize these industry-specific risks and the importance of effective risk management.

3. Financial and Management Risks

Linkbal’s financial condition faces increased uncertainty due to continued operating losses. Specifically, an operating loss of 89,033 thousand yen was recorded for the fiscal year ending September 2025, indicating ongoing profitability challenges. Improving cash flow and financial management is an urgent priority, requiring cost reductions and more efficient allocation of resources, as well as a review of short-term financing methods.

To overcome these challenges, strengthening corporate governance and transparency is essential. This includes enhancing oversight through outside directors, reinforcing internal controls, and establishing a robust risk management framework.

In particular, investment in the AI sector is expected to drive innovation and diversify revenue streams. Careful decision-making in resource allocation and investments is required, and investors must conduct thorough risk analysis based on reliable information.

4. Competitive Environment Risks

While Linkbal enjoys strong brand recognition through services such as “machicon JAPAN,” the competitive environment is becoming increasingly severe. The entry of large corporations and well-funded competitors could pressure market share and negatively impact performance. Rising customer acquisition and retention costs may further strain the company’s financial position.

To address this, the company must continuously innovate and improve service quality to maintain customer satisfaction. Incorporating new technologies and expertise to achieve differentiation is essential. For investors, closely monitoring Linkbal’s competitive strategies and execution capabilities is crucial for investment decisions.

5. Technological Competition and Information Security Risks

The IT industry is undergoing rapid technological advancement, and Linkbal’s adoption of AI technologies and implementation of security measures are directly tied to its long-term viability. Failure to adopt new technologies in a timely manner could result in a loss of competitiveness.

Moreover, as the number of users grows, risks such as system failures and data breaches increase. Properly addressing these risks is essential not only from a legal standpoint but also for maintaining corporate reputation and trust.

In this context, the company must make proactive investments to avoid technological lag while establishing robust security systems to protect user data. Investors should pay close attention to Linkbal’s technology strategy and security initiatives and evaluate their effectiveness.

6. Organizational and Human Resource Risks

Linkbal’s success depends heavily on its organizational capabilities and human resources. A shortage of highly skilled professionals could negatively impact organizational performance. If internal training and management systems do not function effectively, the company’s overall competitiveness may decline.

Corporate culture and talent development systems are also critical for long-term growth. Ineffective performance evaluation systems could lead to talent attrition and decreased employee morale. Additionally, overreliance on specific executives may pose further risks, making leadership structure an important consideration.

From this perspective, investors should carefully assess the robustness of the company’s human resource strategy and organizational structure.

Overall, Linkbal faces a wide range of business risks, and effectively addressing these risks will be key to its future growth. Investors should understand these factors and carefully evaluate the company’s future outlook. Monitoring changes in business strategy and financial conditions will be essential for making informed investment decisions and assessing Linkbal’s overall investment value.