What is RareJob's biggest risk?

RareJob has almost no competitive protection left in its market. The core B2C English tutoring business is shrinking fast, with FY2026/3 operating income down 88.9% year over year and B2C segment sales down 21.4% year over year as of December 31, 2025, while rivals such as DMM Eikaiwa, Native Camp, Cambly, and Recruit's Kimini/Study Sapuri, along with AI apps like Speak and ELSA, pull away users.

Is RareJob in financial trouble?

Yes, its financial trend is weak. FY2026/3 net sales were ¥9,600 million, down 2.0% year over year, operating income dropped 88.9% year over year, and EBITDA fell 53.3% year over year. This is part of why Gakken Holdings, already holding a 19.93% stake as of May 22, 2026, is absorbing the company rather than RareJob continuing independently.

Is RareJob at risk from AI?

Yes, AI voice tutoring apps like Speak, ELSA, and Duolingo Max are already taking share from RareJob according to its own filings, which cite this shift as a driver of usage decline. This is happening alongside a 21.4% year-over-year drop in B2C segment sales as of December 31, 2025, in a market where AI-driven near-free practice competes directly with paid human tutoring.

Who are RareJob's biggest competitors?

Key rivals include DMM Eikaiwa, Native Camp, Cambly, and Recruit's integrated Kimini and Study Sapuri platforms, all larger and better resourced. Our July 2026 assessment found RareJob trailing these bigger players plus Benesse, sitting near the bottom of its online tutoring peer group of 12 companies in the shrinking Japan market.

What happens to RareJob after the Gakken acquisition?

The share exchange with Gakken Holdings is scheduled to take effect and RareJob is expected to delist from the Tokyo Stock Exchange by July 31, 2026. Gakken is expected to publish a specific integration or FY2027 strategy for RareJob within about six months of that closing, roughly by January 31, 2027, a date worth checking for updates.

Does RareJob have anything going for it?

RareJob retains a recognizable brand and its PROGOS assessment tool, which had passed 1 million cumulative tests as of July 31, 2025, and holds corporate testing relationships Gakken may continue to fund. Beyond that, our July 2026 assessment found little else protecting the business as its core tutoring market keeps shrinking.

Education companies · acquisition pending · Philippines

RareJob

rarejob.com ↗

Philippines-based online English tutoring company, listed in Japan, run from Manila.

Little protection left

Assessed 30 July 2026 · Evidence as of 30 July 2026

Not much stands between this business and its pressures.

On the recordSince 30 July 2026 · Checkable from 2026-07-31 · Every call on the record Checkpoint: Gakken Holdings share exchange closes, RareJob delists from TSE

The call

RareJob's consumer tutoring line keeps shrinking even after its own AI launch, and Gakken's July 2026 buyout ends its run as an independent company.

RareJob connects students with live English teachers for conversation practice over the internet. The company faces two big threats: first, rivals like DMM Eikaiwa and Cambly offer nearly identical services with no real difference between them, making it easy for students to switch. Second, AI voice conversation tools (including RareJob's own AI product launched in early 2026) let people practice English without paying for a teacher, yet RareJob's revenue kept falling even after adding AI features. The one thing that could matter: after Gakken Holdings takes over on July 31, 2026, whether they invest money into RareJob's assessment tests and contracts with schools (the stable parts) or let the consumer tutoring side fade away.

Why

AI pressure: AI voice conversation tutors (RareJob's own AI Eikaiwa, plus generic LLM voice apps). RareJob's AI Eikaiwa launched January 2026 to let users practice without a human tutor, but revenue still fell after launch. Could AI do the core job? Yes, likely.

Bigger players: Native Camp, DMM Eikaiwa, Cambly, italki, Preply. These rivals already sell similar or cheaper live conversation practice, and nothing stops a learner from switching apps. Could a giant copy it? Yes, easily.

What protects it. PROGOS speaking-test scores (1M+ cumulative) and school/ALT contracts give Gakken something with procurement ties, unlike the open consumer app market.

What would change this call

RareJob delisting and Gakken share exchange completes around July 31, 2026. Confirms RareJob's independent equity story ends and restructuring begins.
FY2026/3 H2 or FY2027/3 filings show Eikaiwa ARPU and revenue trend after Jan 2026 AI Eikaiwa launch. Tests whether AI features stop or continue core consumer revenue erosion.
Gakken's business-line investment announcements within 6-12 months of close. Shows whether PROGOS/B2B or consumer Eikaiwa gets prioritized or cut.

Key numbers

FY2026/3 net sales ¥9,600M, down 1.2% YoY (2026-03-31)
FY2026/3 operating income down 82.3% YoY (2026-03-31)
Eikaiwa ARPU ¥10,672, down ¥370 YoY (2025-09-30)

Named risks

Core consumer Eikaiwa business shows continued revenue and ARPU erosion despite AI feature launches. Severity: high
Operating income fell 82.3% YoY in FY2026/3 while only net income rose, signaling weakening core profitability. Severity: high
Delisting and Gakken acquisition end independent equity story and dividend, with unclear post-close restructuring. Severity: medium
Commodity Philippine-tutor subscription model has no structural barrier against DMM, Native Camp, Cambly or AI entrants. Severity: high
Management's own 'radical transformation' language signals likely cost-cutting or business-line cuts after acquisition closes. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
DMM Eikaiwa	contesting	Frequently compared head-to-head with RareJob in Japanese consumer Eikaiwa market, as of April 2026
Native Camp	contesting	Competing subscription-model rival in same commodity Japanese online-English market, ongoing 2026
Cambly	contesting	Global English-tutoring platform with ~$100M raised, competes in adjacent conversation-practice market
AI voice/conversation agents	gaining on	RareJob's own AI Eikaiwa launched Jan 2026 without reversing FY2026/3 revenue and ARPU decline

Questions people ask

What is RareJob's biggest risk?: RareJob has almost no competitive protection left in its market. The core B2C English tutoring business is shrinking fast, with FY2026/3 operating income down 88.9% year over year and B2C segment sales down 21.4% year over year as of December 31, 2025, while rivals such as DMM Eikaiwa, Native Camp, Cambly, and Recruit's Kimini/Study Sapuri, along with AI apps like Speak and ELSA, pull away users.
Is RareJob in financial trouble?: Yes, its financial trend is weak. FY2026/3 net sales were ¥9,600 million, down 2.0% year over year, operating income dropped 88.9% year over year, and EBITDA fell 53.3% year over year. This is part of why Gakken Holdings, already holding a 19.93% stake as of May 22, 2026, is absorbing the company rather than RareJob continuing independently.
Is RareJob at risk from AI?: Yes, AI voice tutoring apps like Speak, ELSA, and Duolingo Max are already taking share from RareJob according to its own filings, which cite this shift as a driver of usage decline. This is happening alongside a 21.4% year-over-year drop in B2C segment sales as of December 31, 2025, in a market where AI-driven near-free practice competes directly with paid human tutoring.
Who are RareJob's biggest competitors?: Key rivals include DMM Eikaiwa, Native Camp, Cambly, and Recruit's integrated Kimini and Study Sapuri platforms, all larger and better resourced. Our July 2026 assessment found RareJob trailing these bigger players plus Benesse, sitting near the bottom of its online tutoring peer group of 12 companies in the shrinking Japan market.
What happens to RareJob after the Gakken acquisition?: The share exchange with Gakken Holdings is scheduled to take effect and RareJob is expected to delist from the Tokyo Stock Exchange by July 31, 2026. Gakken is expected to publish a specific integration or FY2027 strategy for RareJob within about six months of that closing, roughly by January 31, 2027, a date worth checking for updates.
Does RareJob have anything going for it?: RareJob retains a recognizable brand and its PROGOS assessment tool, which had passed 1 million cumulative tests as of July 31, 2025, and holds corporate testing relationships Gakken may continue to fund. Beyond that, our July 2026 assessment found little else protecting the business as its core tutoring market keeps shrinking.

Timeline

2026-07-31Gakken Holdings share exchange effective, RareJob becomes wholly owned subsidiary
2026-07-29RareJob delisted from TSE Standard Market, last trading day July 28
2026-06-26RareJob pays FY2026/3 dividend of ¥8.00 per share
2026-06-03Notice of share exchange agreement with Gakken Holdings published
2026-05-15FY2026/3 results filed; share exchange agreement entered, Gakken owns 19.93%
2026-01-01RareJob launches AI Eikaiwa feature and Eikaiwa Coaching
2025-11-14H1 FY2026/3 results show Eikaiwa ARPU decline to ¥10,672
2025-07-31PROGOS assessment surpasses 1 million cumulative tests taken
2024-11-01Capital and business alliance between RareJob and Gakken Holdings announced
2007-10-18RareJob founded by Tomohisa Kato in Shibuya-ku, Tokyo

Head to head

DMM Eikaiwa vs RareJob

Revision history

30 July 2026

First assessed. Little protection left. The text above is fixed as of this date and is not edited afterwards.

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