Is Koei Group profitable?

Yes. For the fiscal year ended February 28, 2026, Koei Group reported net income of $1.9 million on revenue of $47.7 million, up from $1.2 million net income the prior year. Gross margin was 22.1% and operating income was $3.5 million, per its June 29, 2026 Nasdaq F-1 filing.

Koei Group Co., Ltd. is a privately held, founder-run Japanese ITAD and recycling company founded in 1995 in Tokyo. It filed confidentially with the SEC on May 29, 2025, and publicly on June 29, 2026, to raise $19 million on Nasdaq under ticker KOEI via sole underwriter Roth Capital Partners.

Could AI replace Koei Group's business?

Not directly. Koei's core work, chain-of-custody data destruction, regulated waste handling, and Japanese permits, is physical and compliance-based, resistant to AI automation. AI-driven robotic sorting could reduce manual dismantling labor over time, but as of June 2026 no evidence shows Koei deploying AI internally.

Is Koei Group's IPO safe to invest in?

It is a small, high-risk offering: a $19 million raise for a ~73-employee company on Nasdaq under ticker KOEI, filed June 29, 2026. As of July 3, 2026 the IPO had not yet priced, and micro-cap foreign issuer listings of this size are typically volatile post-listing.

Who is Koei Group's biggest competitor?

Iron Mountain's ITAD arm and Sims Lifecycle Services are the largest rivals. Iron Mountain's ITAD revenue grew about 119% in 2023 (roughly 30% organic, per its February 13, 2025 earnings commentary) and Sims Lifecycle grew ITAD revenue 21% to $122.1 million in H1 FY2025, versus Koei's 9% growth.

When is Koei Group's Nasdaq IPO listing date?

Koei Group filed its public F-1 for a $19 million Nasdaq IPO under ticker KOEI on June 29, 2026, with Roth Capital Partners as sole bookrunner. As of July 3, 2026, the offering had not yet priced and an exact listing date was not confirmed.

No grouping · Japan

Koei Group Co., Ltd.

30-year-old Japanese IT asset disposal and recycling firm filing for a Nasdaq IPO.

Losing its protection

Assessed 29 July 2026 · Evidence as of 29 July 2026

The structural protection is eroding.

On the recordSince 29 July 2026 · Checkable from H2 2026 · Every call on the record Checkpoint: Nasdaq IPO pricing and listing under ticker KOEI

The call

Koei runs a real, profitable, regulated Japanese recycling business, but it is entering public markets as a small challenger while larger global ITAD players grow faster and consolidate around it.

Koei Group collects and recycles electronics and IT equipment in Japan, making money from a 30-year-old business that is hard to start because it needs government permits and relationships with cities. However, much bigger companies like Iron Mountain and Sims Lifecycle Services are growing twice as fast and buying up competitors across Asia, and either one could enter Japan with their deep pockets and famous customers, turning Koei's local advantages into a weakness. The company's survival depends on whether it can grow faster than it does now or stay independent long enough to become a takeover target at a good price.

Why

AI pressure: None apparent. AI data center buildouts create more equipment to decommission, feeding Koei's ITAD business rather than threatening it. Could AI do the core job? Unlikely.

Bigger players: Iron Mountain ITAD and Sims Lifecycle Services. Both are growing fast (Iron Mountain +119%, Sims +21%) and acquiring internationally; a Japan acquisition by either would erase Koei's local licensing edge overnight. Could a giant copy it? Probably.

What protects it. Japanese permits, chain-of-custody licensing, and municipal relationships that a foreign entrant cannot buy without acquiring a local operator.

What would change this call

Iron Mountain or Sims announces acquisition of a Japanese ITAD/recycling firm. A global giant matches Koei's regulatory moat with far greater scale and capital.
Koei's gross margin in its next annual report falls below 20%. Suggests commodity price exposure or pricing pressure from larger rivals is eroding profitability.
Koei's revenue growth in its first post-IPO fiscal year stays near 9% rather than reaccelerating to 20%+. Indicates it remains a slow-growing niche player rather than closing the gap with faster peers.

Key numbers

Revenue $47.7M, up 9% year over year (2026-02-28)
Net income $1.9M, up from $1.2M prior year (2026-02-28)
Gross margin 22.1% on $10.5M gross profit (2026-02-28)

Named risks

Small $19M IPO with unpriced offering as of July 3, 2026, typical of volatile micro-cap Nasdaq debuts. Severity: high
Revenue growth of 9% YoY (FY2026) trails ITAD peers growing 21-119%. Severity: high
No named enterprise or government customer contracts disclosed in IPO filings. Severity: medium
Iron Mountain or Sims could acquire a Japanese ITAD rival, eroding Koei's regulatory moat advantage. Severity: medium
AI-driven robotic sorting could compress manual dismantling labor over time. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Iron Mountain (ALM/ITAD arm)	gaining on	119% ITAD growth over 2023 vs Koei's 9% YoY (fiscal 2026)
Sims Lifecycle Services	gaining on	21% H1 FY2025 ITAD revenue growth to $122.1M vs Koei's 9%
Electronic Recyclers International (ERI)	contesting	ERI claims largest N.A. e-waste recycler status (vendor-claimed, April 2026)

Questions people ask

Is Koei Group profitable?: Yes. For the fiscal year ended February 28, 2026, Koei Group reported net income of $1.9 million on revenue of $47.7 million, up from $1.2 million net income the prior year. Gross margin was 22.1% and operating income was $3.5 million, per its June 29, 2026 Nasdaq F-1 filing.
Who owns Koei Group?: Koei Group Co., Ltd. is a privately held, founder-run Japanese ITAD and recycling company founded in 1995 in Tokyo. It filed confidentially with the SEC on May 29, 2025, and publicly on June 29, 2026, to raise $19 million on Nasdaq under ticker KOEI via sole underwriter Roth Capital Partners.
Could AI replace Koei Group's business?: Not directly. Koei's core work, chain-of-custody data destruction, regulated waste handling, and Japanese permits, is physical and compliance-based, resistant to AI automation. AI-driven robotic sorting could reduce manual dismantling labor over time, but as of June 2026 no evidence shows Koei deploying AI internally.
Is Koei Group's IPO safe to invest in?: It is a small, high-risk offering: a $19 million raise for a ~73-employee company on Nasdaq under ticker KOEI, filed June 29, 2026. As of July 3, 2026 the IPO had not yet priced, and micro-cap foreign issuer listings of this size are typically volatile post-listing.
Who is Koei Group's biggest competitor?: Iron Mountain's ITAD arm and Sims Lifecycle Services are the largest rivals. Iron Mountain's ITAD revenue grew about 119% in 2023 (roughly 30% organic, per its February 13, 2025 earnings commentary) and Sims Lifecycle grew ITAD revenue 21% to $122.1 million in H1 FY2025, versus Koei's 9% growth.
When is Koei Group's Nasdaq IPO listing date?: Koei Group filed its public F-1 for a $19 million Nasdaq IPO under ticker KOEI on June 29, 2026, with Roth Capital Partners as sole bookrunner. As of July 3, 2026, the offering had not yet priced and an exact listing date was not confirmed.

Timeline

2026-07-03Koei Group IPO still unpriced on Nasdaq under ticker KOEI
2026-06-29Koei Group files public F-1 seeking $19 million Nasdaq IPO
2026-02-28Fiscal year ends: $47.7M revenue, $1.9M net income reported
2025-09-08Koei Group completes 30,000-for-1 forward stock split
2025-06KOEI JAPAN brand marks 30th anniversary
2025-05-29Koei Group files confidentially with SEC for US IPO
2025-02-13Iron Mountain cites 119% ITAD/ALM revenue growth over 2023
2024-12-31Sims Lifecycle Services reports 21% H1 FY2025 ITAD revenue growth to $122.1M
2024Iron Mountain acquires Wisetek and APCD (Australia) for ITAD expansion
1995Koei Group founded in Tokyo, Japan

Revision history

29 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

In the same band

American Airlines Group Safe Superintelligence Inc.Wayfair

More companies losing its protection →

Sources