eWeLL Co.,Ltd.

Business Details

With home-visit nursing stations as its sole customer base, the company operates two business segments: a cloud service centered on the cloud-based electronic medical record system "iBow," provided on a subscription basis, and BPaaS, which outsources medical fee claim (Recept) processing operations. In the first quarter of FY2026 (ending December 2026) (January to March 2026), revenue was ¥953 million (up 26.5% year on year) and operating profit was ¥434 million (up 15.3% year on year). The number of contracted stations expanded to 3,633 at the end of the first quarter, and the company continued to acquire new customers and users of AI-related services steadily while maintaining a low churn rate.

Recent Overview

Q1 revenue of ¥953 million, operating profit of ¥434 million; contracted stations expanded to 3,633

In the first quarter of FY2026 (ending December 2026) (January to March 2026), the company achieved revenue of ¥953 million (up 26.5% year on year) and operating profit of ¥434 million (up 15.3% year on year). The number of contracted stations increased from 3,501 at the end of the previous fiscal year to 3,633. In addition to AI Home-Visit Nursing Care Plans, Reports, and Visit Route Scheduling, the company newly began offering a management analysis function for home-visit nursing stations. Due to an increase in cost of sales (up 58.9% year on year), the gross profit margin declined to 75.0% (from 80.1% in the same period of the prior year), and the growth rate of operating profit (15.3%) fell below the growth rate of revenue (26.5%). There is no change to the full-year earnings forecast (revenue of ¥4,277 million, operating profit of ¥1,927 million). Additionally, a subsequent event was disclosed regarding the new issuance of 19,964 shares (total issue amount of approximately ¥42 million) as restricted stock compensation, based on a resolution of the Board of Directors on April 17, 2026, with payment due on May 15, 2026.

Key Products

Growth Drivers

• Continued increase in the number of contracted iBow stations (3,633 at the end of Q1 FY2026, an increase of 132 from the end of the prior fiscal year)
• Increase in average monthly unit price through the expansion of AI-related service features (AI Home-Visit Nursing Care Plans, Reports, Visit Route Scheduling, and management analysis functions)
• Expansion of the number of operating stations for BPaaS (iBow Administrative Outsourcing Service)
• Stable accumulation of subscription revenue through the maintenance of a low churn rate
• Structural expansion of demand for home-visit nursing toward 2040 (payments for home-visit nursing have expanded approximately 4.6-fold over 14 years)
• Continued strong interest in operational reform utilizing ICT and DX in the medical and nursing care fields

Risks

• Risk of business contraction among customers (home-visit nursing stations) due to nursing staff shortages
• Risk of slowing new customer acquisition due to widening disparities in DX tool adoption by region and business scale
• Risk of medical information leakage due to system failures, unauthorized access, etc. (cloud services handling personal and medical information)
• Risk of intensified competition due to enhanced CRM- and Recept-related service functionality by competitors
• Risk of changes in the customer revenue environment due to institutional changes such as nursing care fee and medical fee revisions
• Risk of declining profit margins due to an increasing trend in cost of sales (up 58.9% year on year)
• Risk of customer investment restraint due to economic stagnation amid rising prices and overseas economic uncertainty