Cocorport Inc. FY2026 Earnings Deep Dive: A Story of 8 Consecutive Years of Revenue and Profit Growth Driven by Network Expansion and Service Diversification

We have conducted a comprehensive analysis of the FY2026 earnings materials for Cocorport Inc. (Securities Code: 9346), covering the company's performance trends, growth drivers, market environment, and shareholder return policies. Below is a deep-dive report summarizing the overall picture of these financial results.

---

1. FY2026 Earnings Highlights: Profit Exceeds Expectations

Cocorport's consolidated financial results for the fiscal year ended June 2026 were as follows: Net Sales of 7,112 million yen (+11.5% YoY) , Operating Profit of 813 million yen (+5.4% YoY) , Ordinary Profit of 831 million yen (+4.3% YoY) , and Net Income of 584 million yen (+4.0% YoY) .

While net sales reached 97.4% of the initial forecast (7,306 million yen), falling slightly short, the company maintained a double-digit revenue increase of 11.5% YoY , supported by new facility openings and an increase in unit compensation prices. On the profit front, thanks to efficient business operations and the impact of temporary government support measures, such as the "Project for Securing Human Resources and Improving Workplace Environments for Disability Welfare" (6 million yen), both ordinary profit and net income exceeded initial forecasts .

[FY2026 Results]
- Net Sales: 7,112 million yen (+11.5% YoY / 97.4% of forecast)
- Operating Profit: 813 million yen (+5.4% YoY / 99.2% of forecast)
- Ordinary Profit: 831 million yen (+4.3% YoY / 101.0% of forecast)
- Net Income: 584 million yen (+4.0% YoY / 101.6% of forecast)

The slide below is a waterfall chart visually illustrating the factors behind the increase/decrease in ordinary profit for the fiscal year ended June 2026.

[Slide Commentary: Profit Variance Analysis (FY2026)] In the process of moving from the previous year's ordinary profit of 798 million yen to 831 million yen this term, the increase in net sales (+735 million yen) served as the largest positive contributor. While human capital investments and upfront costs expanded—including cost of sales such as labor costs (-477 million yen) , facility opening costs (-67 million yen) , and SG&A/non-operating expenses (-158 million yen) —the revenue growth effectively absorbed these cost increases, demonstrating a structure that consistently hits record-high profit levels.

---

2. A Massive Potential Market and Cocorport’s Unique Positioning

There is significant potential demand (SAM/TAM) in the disability employment support market targeted by the company, particularly regarding the at-home employment status of individuals with mental disabilities . According to statistics from the Cabinet Office and the Ministry of Health, Labour and Welfare, while the employment rate for individuals with physical disabilities is 38.0% and 24.2% for those with intellectual disabilities, the unemployment rate for individuals with mental disabilities is as high as 94.2% (with an employment rate of only 5.8%).

Looking at Cocorport's user composition, approximately 80% have mental disabilities (including developmental disabilities) , giving the company a competitive edge in the segment with the highest support needs and the largest market scale. Furthermore, with the revision of the statutory employment rate —which rose to 2.5% in April 2024 and will increase to 2.7% in July 2026—corporate demand for hiring individuals with disabilities is intensifying, providing a strong tailwind.

---

3. End-to-End Diversification Model and Overwhelming Support Track Record

The source of the company's competitive advantage lies in its unique dominant and diversification strategy , which provides services in an end-to-end manner rather than focusing on a single type of employment support.

1. Independence Training (Life Training) "Cocorport College" : Improving and maintaining daily living skills (generally 2 years).
2. Employment Transition Support : Practical training for employment (generally 2 years).
3. Rework Program : Support for employees on leave to return to work (up to 2 years).
4. Employment Retention Support : Follow-up support after employment (up to 3 years after 6 months of employment).

Internal referral synergies are being generated, such as graduates of independence training facilities becoming users of employment transition support facilities, which contributes significantly to improving customer acquisition efficiency and brand awareness.

Through this comprehensive individual support system, the number of successful job placements in FY2025 (April 2024–March 2025) reached a record high of 955 . Additionally, the retention rate after employment remains at an extremely high level of 87.9% . This strong track record of retention leads to the acquisition of higher compensation tiers under the Comprehensive Support for Persons with Disabilities Act, creating a virtuous cycle that supports high profitability.

---

4. Long-Term Performance Trends and FY2027 Outlook

Cocorport is on a highly sustainable long-term growth trajectory. For the fiscal year ending June 2027, the company forecasts net sales of 8,020 million yen (+12.8% YoY) , ordinary profit of 901 million yen (+8.3% YoY) , and net income of 634 million yen (+8.5% YoY) , aiming for 8 consecutive years of revenue and profit growth .

The slide below shows the long-term performance trends from FY2019 to FY2027 (forecast).

[Slide Commentary: Sustainable Performance Growth (Sales & Ordinary Profit Trends)] From a position in FY2019 with net sales of 1,680 million yen and an ordinary loss of 56 million yen, the company has achieved upward growth through the expansion of its facility network and the diversification of its service menu. In FY2027, the company is expected to surpass the 8 billion yen mark in sales and reach the 900 million yen level in ordinary profit . The trajectory clearly shows a history of steadily accumulating profits in a manner similar to a stock-based business, unaffected by temporary trends.

---

5. Facility Expansion Strategy and Operational Innovation (DX)

Regarding the number of facilities, which serves as the physical engine for growth, the company reached a total of 133 facilities (87 for employment transition support, 46 for independence training) at the end of FY2026, perfectly completing its initial plan (13 new openings).

In FY2027, the company plans to open 12 new facilities (5 for employment transition support, 7 for independence training) , bringing the total number of facilities to 144 by the end of the fiscal year.

The slide below illustrates the trend in the number of facilities and the expansion strategy by region and service.

[Slide Commentary: FY2027 Facility Count Trends and Expansion Plan] In addition to deepening its dominant position in the Kanto region, the company is strengthening new expansion into Western Japan, including the Kansai area (5 facilities) . A notable feature is that 5 of the 7 new independence training facilities will be opened as "Rework" facilities for those on leave. This strategy clarifies the intent to meet the growing demand for returning to work while maximizing regional collaboration and acquisition efficiency by opening in the same dominant areas as existing employment transition support facilities.

Simultaneously, to curb the inflation of headquarters costs and personnel expenses accompanying growth, the company is promoting investments in DX and IT governance . Initiatives include improving meeting efficiency through the introduction of the AI-powered transcription tool "Notta" and building a "Zero Trust Network" to ensure security, thereby enhancing organizational productivity and speed.

---

6. Dramatic Enhancement of Shareholder Returns: Dividend Payout Ratio Raised to 50% and Introduction of Interim Dividends

Another major theme in this earnings announcement is the proactive strengthening of shareholder return policies .

1. FY2026 Actual Dividend : Revised upward from the initial annual forecast of 61 yen to 64 yen per share (year-end lump sum).
2. FY2027 Dividend Forecast : The target dividend payout ratio has been raised from 40% to 50% . Consequently, the company plans an annual dividend of 86 yen per share .
3. Introduction of Interim Dividend System : To enrich opportunities for returning profits to shareholders, the company has changed its policy to two dividends per year , with an interim dividend (43 yen) based on the record date of December 31 and a year-end dividend (43 yen) .

While maintaining internal reserves necessary for business expansion and a sound financial structure, the company has clearly signaled a more shareholder-friendly stance, backed by the establishment of a stable profit growth foundation.

---

7. Summary and Comprehensive Analysis

Cocorport's FY2026 results and future plans can be summarized in the following 10 points:

1. FY2026 Results : Net sales of 7,112 million yen (+11.5% YoY) and ordinary profit of 831 million yen (+4.3% YoY), meeting or exceeding plans.
2. FY2027 Forecast : Targeting net sales of 8,020 million yen and ordinary profit of 901 million yen, marking 8 consecutive years of revenue and profit growth .
3. Massive Potential Market : Targeting the mental disability segment (94.2% unemployment rate) and riding the wave of increased statutory employment rates.
4. End-to-End Model : High synergy effects by linking independence training, employment transition, rework, and retention support.
5. Top-Tier Support Track Record : A record-high 955 job placements in FY2025 and an 87.9% workplace retention rate .
6. Steady Facility Expansion : Completed 133 facilities in FY2026, with plans to expand to 144 in FY2027 .
7. Cost Control : A profit structure that effectively absorbs increases in human capital and new facility costs through revenue growth.
8. Regional/Service Diversification : Penetration into the Kansai area and aggressive expansion of "Rework" facilities (5 new locations).
9. Productivity via DX : Strengthening IT governance through the introduction of Notta and the construction of a Zero Trust network.
10. Significant Expansion of Shareholder Returns : Raising the dividend payout ratio to 50% and introducing interim dividends for an annual dividend forecast of 86 yen .

The company's strength lies in its ability to balance high-quality individual support with efficient, diversified operations in the disability employment support sector, which has high social demand. It is a company to watch for both its stable profit foundation and its proactive shareholder return stance.