Cocorport, Inc.

Business Details

Cocorport Co., Ltd. operates in the single segment of "Designated Disability Welfare Services Business." The company provides Employment Transition Support, Employment Retention Support, and Designated Care Planning Consultation Support Services, as well as Independence Training (Life Training) Services (Cocorport College and Cocorport Rework). The company operates nationwide, centered on the greater Tokyo metropolitan area (Tokyo and three surrounding prefectures), and as of the end of March 2026 operated 126 locations (130 locations including pre-opening sites). Its business model receives compensation via government bodies (National Health Insurance Associations).

Recent Overview

Continued growth trend with cumulative 3Q net sales up 11.5% and operating profit up 15.5%

For the cumulative nine months of FY2026 (ending June 2026) (July 2025 to March 2026), the company achieved net sales of ¥5,207 million (up 11.5% year on year), operating profit of ¥610 million (up 15.5%), ordinary profit of ¥627 million (up 18.5%), and quarterly net profit of ¥426 million (up 18.6%). The number of locations expanded to 126 (130 including pre-opening sites), an increase of six from the end of the previous fiscal year. There has been no revision to the full-year earnings forecast (net sales of ¥7,306 million, operating profit of ¥820 million). The equity ratio improved to 78.2%. During the period, the company acquired 37,800 treasury shares and retired 37,893 treasury shares.

Key Products

Growth Drivers

• Expanding demand for employment of people with disabilities due to the phased increase in the statutory employment rate for people with disabilities (from 2.5% in April 2024 to a planned 2.7% in July 2026); only 46.0% of companies currently meet the statutory rate, indicating substantial demand from non-compliant companies
• Continued increase in the number of locations (from 120 at the end of FY2025 (ended June 2025) to 126 at the end of March 2026, or 130 including pre-opening sites), expanding the number of users and attendance
• Expansion of Independence Training (Life Training) services through Cocorport College and Cocorport Rework, generating synergies with Employment Transition Support services
• Maintenance and improvement of compensation rates through high-quality support, evidenced by an 89.7% employment retention rate (under a compensation structure linked to employment outcomes)
• Strengthened regional collaboration and referral acquisition with local governments, clinics, and support organizations through dominant regional expansion strategy
• Continued expansion of the disability employment market, with both the number of employed persons with disabilities and the actual employment rate at private companies reaching record highs

Risks

• Risk of fluctuations in compensation unit prices due to revisions to the Act on Comprehensive Support for Persons with Disabilities and related laws (the compensation structure is determined by the Ministry of Health, Labour and Welfare)
• Risk of difficulty in recruiting, training, and retaining personnel to ensure support quality (rising personnel costs accompanying business expansion)
• Risk of reduced utilization rates and deteriorating profitability during the startup period of new locations (impairment losses have been recorded in the past: ¥37,433 thousand in FY2025 (ended June 2025))
• Risk of revenue concentration among major clients (National Health Insurance Associations in Kanagawa, Saitama, Tokyo, and Chiba), which together account for approximately 86% of net sales
• Risk of intensifying competition for user acquisition due to entry and expansion by competing operators