Green Monster Inc. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥516M
• Operating Income: ¥-13M
• Net Income: ¥-50M
• EPS: ¥-13.30

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Green Monster Co., Ltd. reported FY2026 Q1 consolidated results under JGAAP showing strong top-line momentum but continued losses. Revenue rose 57.7% year over year to ¥516.0 million, indicating meaningful demand growth or expanded monetization compared with the prior-year quarter. Despite this, profitability remained weak: operating income was a loss of ¥13.0 million (down 17.3% YoY), ordinary income was a loss of ¥11.0 million, and net income was a loss of ¥41.0 million (down 53.4% YoY). The net profit margin was -7.95%, and the reported DuPont ROE was -3.02%, driven mainly by a negative margin rather than balance sheet leverage. Gross profit was ¥58.567 million, implying a gross margin of 11.4%, which suggests a cost-intensive revenue mix or early-stage scaling with limited pricing power. Non-operating items appear slightly positive (ordinary loss smaller than operating loss), but not enough to offset operating headwinds. Liquidity looks ample: the current ratio stands at 469.4% with current assets of ¥1,463.78 million versus current liabilities of ¥311.835 million, and working capital of ¥1,151.945 million. The balance sheet is lightly levered with total liabilities of ¥390.57 million against total equity of ¥1,359.0 million (debt-to-equity 0.29x), implying headroom to absorb near-term losses. Asset turnover of 0.286 in the quarter indicates improving utilization relative to equity, but the negative margin is the primary drag on returns. Interest expense is modest at ¥0.325 million, and interest coverage based on operating income is -40.0x due to negative EBIT. Cash flow data (OCF/ICF/FCF) are not disclosed in this dataset, limiting visibility into earnings quality and cash conversion. Several line items, including depreciation/amortization, cash and equivalents, and share counts, are shown as zero and should be treated as undisclosed rather than actual zero values. The equity ratio is listed as 0.0%, but balance sheet figures imply an equity ratio around 75%, suggesting the 0.0% figure is a placeholder. Overall, the quarter highlights robust revenue growth but subscale profitability and negative earnings, with a strong liquidity and solvency buffer. The strategic imperative is to lift gross margin and scale operating efficiency to translate growth into sustainable profits.

Profitability Analysis

ROE_decomposition: DuPont indicates ROE of -3.02% = Net margin (-7.95%) × Asset turnover (0.286) × Financial leverage (1.33). The negative margin is the dominant driver of negative ROE, while asset turnover and leverage are moderate and not primary detractors. margin_quality: Gross margin of 11.4% (¥58.567m/¥516.0m) is thin, implying a high cost of revenue or pricing pressure. Operating margin is -2.5% (¥-13.0m/¥516.0m), reflecting limited operating scale and/or elevated SG&A relative to gross profit. Effective tax rate is 0.0% due to losses. operating_leverage: Operating loss widened YoY (-17.3%) despite a 57.7% revenue increase, suggesting fixed costs or growth investments scaled faster than gross profit. Non-operating items narrowed the loss from operating to ordinary (by ~¥2.0m), but core operations remain loss-making. Interest expense is immaterial to the loss profile.

Growth Assessment

revenue_sustainability: Revenue of ¥516.0m grew 57.7% YoY, implying strong demand or increased monetization. Sustainability depends on retention, pricing power, and continued customer acquisition; current data does not disclose customer concentration or segment mix. profit_quality: Despite growth, net income was ¥-41.0m and operating income ¥-13.0m. The low gross margin (11.4%) constrains operating leverage. Ordinary loss smaller than operating loss suggests modest non-operating support, which is not a durable profit driver. outlook: Near-term outlook hinges on improving unit economics (COGS efficiency and gross margin) and SG&A productivity. With light leverage and high liquidity, the company has capacity to invest, but must translate growth into margin expansion to approach breakeven. Absent visibility into quarterly cash flows, timing of profitability inflection is uncertain.

Financial Health

liquidity: Current assets ¥1,463.78m vs. current liabilities ¥311.835m yields a current ratio of 469.4% and quick ratio of 469.4% (inventories undisclosed). Working capital is ¥1,151.945m, indicating ample short-term liquidity. solvency: Total liabilities ¥390.57m and total equity ¥1,359.0m imply low leverage (debt-to-equity 0.29x). Interest expense is small (¥0.325m), minimizing refinancing risk in the near term. capital_structure: Assets ¥1,803.0m vs. equity ¥1,359.0m imply an equity ratio of roughly 75% (reported 0.0% appears placeholder). Financial leverage factor of 1.33 aligns with assets/equity (~1.33x), indicating conservative balance sheet posture.

Cash Flow Quality

earnings_quality: OCF is undisclosed (shown as 0), so OCF/Net Income of 0.00 is not informative. Absent cash flow data, we cannot validate accruals or the cash conversion of earnings. FCF_analysis: Investing and financing cash flows are undisclosed; Free Cash Flow is therefore not observable in this dataset. Revenue growth alongside losses suggests potential cash burn, but magnitude and trajectory are unclear. working_capital: Working capital is strong (¥1,151.945m), but without OCF we cannot assess whether the quarter benefited from favorable working capital timing or faced inventory/receivables build (inventories are undisclosed).

Dividend Sustainability

payout_ratio_assessment: Annual DPS is undisclosed/zero in the dataset; payout ratio is shown as 0.0%. Given negative EPS (-¥13.30), dividends are unlikely near term without drawing on balance sheet capacity. FCF_coverage: FCF coverage is shown as 0.00x due to undisclosed cash flows. With negative earnings and absent FCF data, sustained distributions would not be supported by operating cash generation. policy_outlook: Focus is likely on reinvestment and breakeven attainment. Any dividend initiation or resumption would depend on achieving consistent positive OCF and FCF.

Risk Assessment

Business Risks:

• Low gross margin (11.4%) indicating cost pressure or limited pricing power
• Execution risk in scaling operations to profitability despite rapid revenue growth
• Potential customer or channel concentration (not disclosed)
• Competitive intensity and price-based competition compressing margins
• Dependence on non-operating items to narrow losses (not sustainable)

Financial Risks:

• Sustained operating losses (OP margin -2.5%, net margin -7.95%)
• Limited visibility into cash burn due to undisclosed cash flow statements
• Potential working capital volatility (inventories and OCF not disclosed)
• Data placeholders (e.g., equity ratio 0.0%, cash & equivalents 0) complicate analysis
• Interest coverage negative due to operating losses

Key Concerns:

• Translating 57.7% YoY revenue growth into positive operating income
• Improving gross margin from 11.4% to support operating leverage
• Clarifying cash flow trajectory and liquidity usage absent OCF/FCF disclosure

Investment Implications

Key Takeaways:

• Top-line growth strong at +57.7% YoY to ¥516.0m
• Gross margin thin at 11.4%, constraining operating leverage
• Operating loss ¥-13.0m; net loss ¥-41.0m; ROE -3.02%
• Balance sheet conservative: D/E 0.29x; current ratio 469.4%
• Cash flow data undisclosed, limiting visibility on burn and runway

Metrics to Watch:

• Gross margin trajectory and COGS efficiency
• Operating expense ratio (SG&A/revenue) and breakeven timing
• OCF and FCF once disclosed; OCF/NI conversion
• Asset turnover relative to growth investments
• Working capital movements (receivables, payables) and cash balance disclosure

Relative Positioning: Relative to growth-stage TSE peers, the company exhibits above-average revenue growth with below-average margins, but benefits from a stronger-than-average liquidity and low leverage profile that provides runway to pursue margin improvement.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis