Worth reading
55In focus
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
15
% (decline in revenue per user)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&AFirst quarter of the fiscal year ending December 202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Results for the three months of the current quarterRevenue and earnings were broadly in line with the plan. Specific actual amounts: Not disclosed
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Both revenue and earnings were broadly in line with the planKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
Impact of the medical fee schedule revision: revenue per user is expected to decline by approximately 15%, but productivity will be improved by optimizing staffing levels / First-quarter progress: revenue and earnings were broadly in line with the plan / Business plan from 2027 onward: the timing of disclosure is undecided because the plan will be prepared after assessing conditions following the medical fee schedule revision / Impact of interest rate increases: most interest expense consists of accounting amounts associated with finance leases, so the impact is limited / Partnership with Sugi Holdings: 7 facilities have been co-developed, with approximately 10 more under discussion / Equity financing: equity financing is not needed in the short term, while the medium- to long-term decision will be based on a comprehensive assessment / Transfer to the Prime Market: specific timing is under consideration / Hiring: there have been many applicants, and no facility opening has ever been delayed due to hiring / Facility opening model: approximately 90% of all facilities are operated under leases / Becoming profitable: the plan is for 30-room facilities to achieve monthly profitability in 6 months and cumulative profitability in 12 months, and for 40-room facilities to achieve monthly profitability in 8 months and cumulative profitability in 18 monthsBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Revenue per user: approximately 15% decline (impact of the 2026 medical fee schedule revision) / Medical staff and facilities: decrease, improving productivity / 4 facilities opened at the end of the previous year: increased operating losses
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Impact of the 2026 medical fee schedule revision / Business earnings over the several months following June 2026 / Optimization of facility staffing levels by year-end / Facility development plans from 2027 onward: undecidedNew initiatives
Selecting bundled home-visit nursing services following the medical fee schedule revision and optimizing facility staffing levels / Collaboration with Sugi Holdings to raise awareness, co-develop facilities and improve the quality of palliative care / Expanding co-developed facilities / Monetizing company-owned properties through sale-and-leaseback transactionsKey KPIsA metric the company considers important as a management benchmark.
Revenue per user: approximately 15% decline, including an 8% decline in the second half of the previous fiscal year alone / Utilization: increased in line with the plan / Co-developed facilities: 7 / Facilities under discussion for development from 2026 onward: approximately 10 / Proportion of facilities operated under leases: approximately 90%Unit price and quantity metricsThese figures show sales broken down by price and volume.
Revenue per user: approximately 15% decline, including an 8% decline in the second half of the previous fiscal year alone / Utilization: increased in line with the plan (specific figure: Not disclosed)Medium-term management plan targets
Assuming the previous medium-term management plan, the company is expected to meet the requirements for the Prime Market, including the net assets and profit thresholds, in 2026–2027. Specific targets under the medium-term management plan: Not disclosedFinancial targets
The company plans to improve the soundness of financial metrics, including the equity ratio. Numerical targets and actual figures: Not disclosedNumber of stores and locations
Approximately 90% of all facilities are operated under leases. 7 facilities have been co-developed with Sugi Holdings, with approximately 10 more under discussion. Total facilities at period-end and the number of facilities opened and closed during the period: Not disclosedNumber of employees
There were very many applicants for nursing and care staff positions relative to the number of openings. Number of employees, changes during the period and number of hires: Not disclosed| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | First quarter of the fiscal year ending December 2026 |
| Results for the three months of the current quarter | Revenue and earnings were broadly in line with the plan. Specific actual amounts: Not disclosed |
| Self-assessment against the plan | Both revenue and earnings were broadly in line with the plan |
| Breakdown of Factors Affecting the Change | Revenue per user: approximately 15% decline (impact of the 2026 medical fee schedule revision) / Medical staff and facilities: decrease, improving productivity / 4 facilities opened at the end of the previous year: increased operating losses |
| Key KPIs | Revenue per user: approximately 15% decline, including an 8% decline in the second half of the previous fiscal year alone / Utilization: increased in line with the plan / Co-developed facilities: 7 / Facilities under discussion for development from 2026 onward: approximately 10 / Proportion of facilities operated under leases: approximately 90% |
| Unit price and quantity metrics | Revenue per user: approximately 15% decline, including an 8% decline in the second half of the previous fiscal year alone / Utilization: increased in line with the plan (specific figure: Not disclosed) |
| Number of stores and locations | Approximately 90% of all facilities are operated under leases. 7 facilities have been co-developed with Sugi Holdings, with approximately 10 more under discussion. Total facilities at period-end and the number of facilities opened and closed during the period: Not disclosed |
| Number of employees | There were very many applicants for nursing and care staff positions relative to the number of openings. Number of employees, changes during the period and number of hires: Not disclosed |
| Assumptions Underlying the Business Outlook | Impact of the 2026 medical fee schedule revision / Business earnings over the several months following June 2026 / Optimization of facility staffing levels by year-end / Facility development plans from 2027 onward: undecided |
| Medium-term management plan targets | Assuming the previous medium-term management plan, the company is expected to meet the requirements for the Prime Market, including the net assets and profit thresholds, in 2026–2027. Specific targets under the medium-term management plan: Not disclosed |
| Financial targets | The company plans to improve the soundness of financial metrics, including the equity ratio. Numerical targets and actual figures: Not disclosed |
| Key points of the Q&A | Impact of the medical fee schedule revision: revenue per user is expected to decline by approximately 15%, but productivity will be improved by optimizing staffing levels / First-quarter progress: revenue and earnings were broadly in line with the plan / Business plan from 2027 onward: the timing of disclosure is undecided because the plan will be prepared after assessing conditions following the medical fee schedule revision / Impact of interest rate increases: most interest expense consists of accounting amounts associated with finance leases, so the impact is limited / Partnership with Sugi Holdings: 7 facilities have been co-developed, with approximately 10 more under discussion / Equity financing: equity financing is not needed in the short term, while the medium- to long-term decision will be based on a comprehensive assessment / Transfer to the Prime Market: specific timing is under consideration / Hiring: there have been many applicants, and no facility opening has ever been delayed due to hiring / Facility opening model: approximately 90% of all facilities are operated under leases / Becoming profitable: the plan is for 30-room facilities to achieve monthly profitability in 6 months and cumulative profitability in 12 months, and for 40-room facilities to achieve monthly profitability in 8 months and cumulative profitability in 18 months |
| New initiatives | Selecting bundled home-visit nursing services following the medical fee schedule revision and optimizing facility staffing levels / Collaboration with Sugi Holdings to raise awareness, co-develop facilities and improve the quality of palliative care / Expanding co-developed facilities / Monetizing company-owned properties through sale-and-leaseback transactions |
Items this document does not state (17)
Net SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesFull-year earnings forecastProgress against full-year forecastSegment resultsRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Although revenue per user is expected to decline due to the revision to the medical fee schedule, selecting bundled home-visit nursing services will enable the company to bill for shorter visits, allowing it to reduce the number of medical staff and improve productivity. As for first-quarter earnings, operating losses at the 4 facilities opened at the end of the previous year increased, but business earnings, revenue per user and utilization were broadly in line with the plan.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.