CARE TWENTYONE CORPORATION
2373・Standard Market・Services
Business
Care Twenty-One Co., Ltd. operates home-based care services (home-visit care, care management, day services, etc.; 338 locations) and facility-based care services (fee-based nursing homes with care, group homes, etc.; 148 facilities) as its core businesses, while also offering diversified services including childcare, day services for children and adults with disabilities, home-visit nursing, meal services (dining), care workforce education, and welfare equipment rental and sales. The company has locations in 15 prefectures and metropolises nationwide, centered on Osaka and Tokyo, and operates as a group of 15 companies, including 14 consolidated subsidiaries and 2 equity-method affiliates. Consolidated net sales for FY2025 (ending October 2025) were ¥48,158 million. Its primary customers are elderly individuals certified as requiring nursing care and their families, with care service fee revenue (received via the National Federation of Health Insurance Societies) accounting for the majority of sales.
Business Model
Revenue is largely derived from officially fixed fees under the Long-Term Care Insurance Act and the Act for Comprehensive Support for Persons with Disabilities, with 70–90% of service fees paid through the National Health Insurance Associations, forming a stable revenue structure. Payments via the Osaka Prefecture National Health Insurance Association account for 19.4% of sales, and payments via the Tokyo National Health Insurance Association account for 12.9%. Profit growth is primarily driven by scale expansion through new facility openings and M&A, as well as improved utilization rates at existing facilities, with the residential care business accounting for more than half of sales (53.1%), making it the core segment.
Company Strengths
In addition to 338 home-visit care offices and 148 facility-based sites, the group encompasses home-visit nursing, childcare, welfare services for people with disabilities, meal services, care equipment, and caregiving personnel education. Intra-group sales (inter-segment transfers) reached ¥3,793 million in FY2025 (ending October 2025), with mutual client referrals and service coordination within the group contributing depth to the earnings base.
Segment profit for the facility-based care business in FY2025 (ending October 2025) was ¥1,652 million (up 342.5% year on year). The establishment of a new occupancy promotion department expanded external referral channels and strengthened the facility tour response system, improving occupancy rates, while procurement optimization and energy cost countermeasures successfully curbed costs. Revenue also expanded to ¥25,586 million (up 8.2% year on year).
The company advanced the digitization of home-visit care records and expanded the in-house development and operation of proprietary groupware, promoting standardization and visualization of operations. While increased amortization expenses from the self-developed system affected the cost side, productivity gains from increased operating hours and reduced administrative burden contributed to improved segment profit margin in the home-based care business (up 18.9% year on year).
ENVALITH's Perspective
Performance Trend
Revenue expanded approximately 36% over five years, from ¥36,361 million in FY2021 to a full-year forecast of ¥49,500 million for FY2026 (ending October 2026). Operating losses persisted in FY2023 and FY2024, but the company returned to profitability in FY2025 with operating profit of ¥785 million. In the first half of FY2026 (ending October 2026), revenue was ¥24,802 million (up 5.0% year on year) and operating profit was ¥331 million, indicating continued improvement in business earnings. However, due to the recognition of a facility closure loss of ¥527 million (extraordinary loss), the company posted an interim loss before income taxes of ¥316 million and an interim net loss attributable to owners of the parent of ¥313 million. Externally, price inflation driven by rising food and energy costs, along with increased personnel expenses, continue to pressure profitability, and revenue growth decelerated from 7.6% in the same period of the prior year to 5.0%.
Growth Strategy
Sustainable growth through profitability-focused location expansion, occupancy rate improvement, DX promotion, and utilization of foreign national personnel
Continuing store openings oriented toward early profitability based on detailed market analysis. In the interim period of FY2026 (ending October 2026), opened 4 new Home-based Care Business locations (Osaka, Hyogo, Fukuoka), 1 Facility-based Care Business location (Tokyo), 3 locations for Day Support Services & Continuous Employment Support for Persons with Disabilities (Children), and 1 Dining Business (Meal Service & Delivery) location. M&A focused on profitability and regional complementarity is being pursued in parallel to strengthen the stable earnings base.
Continued effectiveness of the sales structure strengthening by the move-in promotion department established in the previous period led to a significant improvement of 86.9% year-on-year increase in segment profit for the interim period of FY2026 (ending October 2026). Progress is also being made in optimizing the cost structure through measures such as reviewing equipment procurement methods, and improvements in earnings quality will continue through both occupancy rate improvement and cost efficiency.
Promoting standardization and visualization of operations through the digitization of home-visit care records and the proprietary development and expanded use of groupware. Aiming to improve productivity by reducing administrative burden and securing more service provision time, this initiative continues to address personnel shortages while improving profitability.
Enhancing the recruitment and development system for foreign national personnel in light of policy developments including the Specified Skilled Worker system. Promoting the realization of an "Inclusive Company" regardless of generation, nationality, or employment type through unique systems such as abolition of the mandatory retirement age, conversion of part-time workers to indefinite-term employment, and the "Challenge Career System," thereby strengthening the foundation for personnel retention.
In connection with the review of operations at certain facilities within the Facility-based Care Business, a facility closure loss of ¥527 million was recorded in the interim period of FY2026 (ending October 2026). The policy is to improve mid- to long-term profitability through portfolio optimization by restructuring unprofitable facilities. The full-year earnings forecast for FY2026 (ending October 2026) has been revised; please refer to the separately disclosed materials for details.
Last updated: July 17, 2026