ENVALITH
Recovery International株式会社 logo

Recovery International Co., Ltd

9214・Growth Market・Services

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Recovery International株式会社 logo
Recovery International Co., Ltd9214

Business

Recovery International Co., Ltd. was established in November 2013 in Shinjuku-ku, Tokyo, as an independent home-visit nursing care operator. Nurses, physical therapists, and other staff visit users' homes to provide medical treatment, rehabilitation, and health management based on physicians' instructions. The company operates under both the medical insurance and long-term care insurance systems, with its main customers being home-care patients, primarily elderly individuals certified as requiring long-term care or support. The company listed on the Tokyo Stock Exchange Growth Market in February 2022. In March 2025, it entered the Comedical Staffing Placement Business through its subsidiary RePath Co., Ltd., establishing a two-segment structure consisting of the Home-Visit Nursing Care Service Business (97% of net sales) and the Comedical Staffing Placement Business. The company maintains a dominant presence in the Kanto region, centered on Tokyo, and also has locations in Hyogo, Kochi, and Okinawa.

Business Model

Revenue in the Home-Visit Nursing Care Service Business is determined by "total number of visits × reimbursement rate per visit." Reimbursement is received from health insurance societies, National Health Insurance federations, and similar bodies based on Ministry of Health, Labour and Welfare ordinances. The company maximizes visits per staff member through IT-based visit area optimization and cloud-based KPI management, and expands headcount through a training program that develops inexperienced hires into productive staff in approximately three months. The Comedical Staffing Placement Business operates as a success-fee-based paid employment placement service, earning placement fees when candidates are successfully placed at medical institutions and similar organizations.

Company Strengths

Built a visit area optimization system combining visit records, geographic data, and market data. Cloud-based daily KPI sharing and centralized head-office administrative management enable efficient operations without dedicated administrative staff at each business location. In FY2025 (ending December 2025), the cost of sales ratio was 56.6% and the gross profit margin was 43.4%, maintaining a high level.

Despite more than 90% of new hires having no prior experience in home-visit nursing, the company has established a training program that raises them to a level capable of independent visits in roughly 3 months. As a result, the number of home-visit nursing staff expanded from 263 (end of FY2024, ending December 2024) to 314 (end of FY2025, ending December 2025), and the cumulative number of visits increased from 255,473 to 330,790.

As an independent operator not affiliated with any particular group, the company adopts a dominant strategy of intensively deploying geographically adjacent business locations. Rather than

ENVALITH's Perspective

As an external factor, the urgent need to build a home medical care system in anticipation of the peak in the elderly population (the 2040 problem) is pushing up demand across the industry as a whole. Home-visit nursing care costs have expanded to approximately ¥993.3 billion, 3.4 times the 2013 level, and the company's strategy of expanding its network of facilities aligns with the direction of market growth. The full-year forecast for FY2026 (ending December 2026) of net sales of ¥3,430 million (up 27.5% year on year) is an aggressive plan premised on this market environment, and whether it is achieved will depend on progress in facility utilization rates and staffing.

In the first quarter of FY2026 (ending December 2026), the Comedical Staffing Placement Business recorded a segment loss of ¥24 million, indicating that the upfront investment phase is continuing. Due to aggressive spending on recruitment and advertising, net sales remained at only ¥28 million, far from the break-even point. An unamortized goodwill balance of ¥71 million (as of March 31, 2026) also remains, and the timing and scale of the business's return to profitability will be key to improving profitability across the group as a whole. Continued attention should be paid to whether the full-year earnings forecast is revised.

In the first quarter of FY2026 (ending December 2026), the company recorded net sales of ¥738 million and operating profit of ¥14 million, but due to income taxes of ¥17 million (exceeding the effective tax rate relative to profit before income taxes of ¥14 million), it posted a quarterly net loss attributable to owners of the parent of ¥3 million. Against the full-year forecast (net sales of ¥3,430 million, operating profit of ¥215 million, and net income of ¥151 million), the first-quarter progress rates were only 21.5% for net sales and 6.5% for operating profit, suggesting a profit structure weighted toward the second half. Share buybacks (¥32 million in the first quarter) are also putting pressure on net assets, requiring attention to the balance between capital efficiency and shareholder returns.

Growth Strategy

Growth of the group through expansion of home-visit nursing care sites, enhanced personnel training, and profitability of the Comedical Staffing Placement Business

New locations are being planned and opened systematically centered on the Kanto-region dominant strategy, targeting a network of 44 offices nationwide in FY2026 (ending December 2026). New store openings since the previous fiscal year have contributed to the increase in sales in the first quarter of FY2026 (ending December 2026), and the company is simultaneously promoting the expansion of the number of locations and the improvement of the utilization rate of existing locations.

The company actively recruits individuals without prior home-visit nursing experience and expands its workforce through an early workforce development program that achieves proficiency in approximately three months. In the first quarter of FY2026 (ending December 2026) as well, the company is focusing on the recruitment and development of highly specialized nurses, with workforce expansion serving as the foundation for sales growth.

The subsidiary RePath Co., Ltd. is pursuing market development through active personnel recruitment and advertising expenditure. In the first quarter of FY2026 (ending December 2026), the segment recorded a loss of ¥24 million, continuing the phase of upfront investment. Securing sales personnel and improving matching accuracy to expand sales will be key to achieving profitability.

The company continues to enhance visit area optimization, cloud-based management, and KPI sharing to maximize visit efficiency per location. In the first quarter of FY2026 (ending December 2026), the Home-Visit Nursing Care Service segment maintained a high profit margin of approximately 28.5%, with maintaining operational quality alongside location expansion being a key challenge going forward.

Last updated: July 17, 2026