Cookpad Inc. FY2025 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥4.04B
• Operating Income: ¥201M
• Net Income: ¥538M
• EPS: ¥6.83

Income Statement

Balance Sheet

Cash Flow Statement

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

Cookpad (TSE:2193) reported FY2025 Q3 (IFRS, consolidated) results showing revenue of 40.40 and operating income of 2.01, with top-line down 9.5% YoY and operating income down a steep 63.6% YoY, indicating pronounced operating leverage and margin compression. Net income was 5.38, down 39.5% YoY, supported by a slight tax benefit (income tax of -0.14) and non-operating/other items that lifted profit before tax to 4.93. DuPont metrics show a calculated ROE of 4.2% based on a 13.3% net margin, 0.290x asset turnover, and modest leverage of 1.10x, reflecting a very conservative balance sheet. The equity ratio is a high 91.0%, with total equity of 126.95 against total assets of 139.48 and liabilities of only 13.98, underscoring low solvency risk. Cash and equivalents are sizable at 120.84, implying a substantial net cash position and significant liquidity headroom. Accounts receivable of 9.60 and minimal inventories (0.09) are consistent with a digital platform model. The reported gross profit of 44.35 exceeds revenue (40.40), producing a mechanically high gross margin (109.8%); this suggests IFRS classification effects (e.g., other operating income recognized above operating profit or presentation differences) and makes the gross margin ratio not economically meaningful this quarter. Despite the resilient net margin on a reported basis, underlying operating profitability weakened, with an implied operating margin of roughly 5.0% (2.01/40.40) versus a higher level a year ago. Ordinary income and several non-operating items were not disclosed, limiting comparability to JGAAP-style metrics commonly used in Japan. Book value per share is about 170.40 JPY, supported by large capital surplus (122.23) and retained earnings (46.02), offset by treasury shares of 32.93 million. EPS (basic) was 6.83 JPY on average shares of 78.88 million, aligning with the reported net income scale (about 5.38 billion yen equivalent in units used). With cash at roughly 87% of total assets, Cookpad’s financial flexibility remains strong even as earnings volatility rises. The negative effective tax rate (-2.9%) points to tax credits, losses, or timing differences helping bottom line this quarter. Absence of cash flow statement disclosures constrains assessment of earnings-to-cash conversion and free cash flow, though the business model is typically asset-light. Dividend data were not reported; therefore, payout capacity cannot be quantified, though the balance sheet suggests capacity if policy permits and if operating cash flow proves stable. Overall, the quarter highlights weakening core operating performance against a still-fortified balance sheet, leaving near-term trajectory dependent on revenue stabilization and cost discipline.

Profitability Analysis

ROE_decomposition: Calculated ROE is 4.2%, driven by net margin 13.3%, asset turnover 0.290x, and financial leverage 1.10x. The low turnover and very low leverage cap ROE despite the reported net margin. margin_quality: Operating margin is approximately 5.0% (2.01/40.40). Net margin at 13.3% is inflated by non-operating/tax effects (PBT 4.93 vs tax -0.14), not core operations. Reported gross margin of 109.8% is not economically interpretable given gross profit exceeds revenue under presented figures, likely reflecting IFRS presentation effects (e.g., other operating income included). operating_leverage: Revenue declined 9.5% YoY while operating income fell 63.6% YoY, indicating high operating leverage and weak cost absorption. SG&A of 38.96 relative to revenue (96% of revenue) underscores limited flexibility absent cost actions or revenue recovery.

Growth Assessment

revenue_sustainability: Top-line contracted to 40.40 (-9.5% YoY), signaling user monetization or advertising softness and/or subscription headwinds typical for consumer internet platforms in a sluggish ad environment. profit_quality: Core profit weakened sharply; operating income of 2.01 suggests pressure from lower scale and high fixed costs. Net income resilience versus operating income reflects tax and non-operating contributions, which may not be recurring. outlook: Near-term earnings trajectory hinges on stabilizing traffic/ARPU and SG&A discipline. Given low asset intensity, incremental revenue recovery would flow through meaningfully to operating profit, but conversely, further top-line softness could compress margins further.

Financial Health

liquidity: Cash and equivalents are 120.84, or about 87% of total assets (120.84/139.48). Current assets of 133.36 are large relative to total assets, implying strong liquidity, though current liabilities are unreported, so ratios like current and quick cannot be computed. solvency: Equity ratio is 91.0%; total liabilities are 13.98 vs equity 126.95. Debt-to-equity of ~0.11x (total liabilities basis) indicates very low balance sheet risk. capital_structure: Large capital surplus (122.23) and retained earnings (46.02) support equity of 126.95. Interest-bearing debt details are unreported, but overall leverage is minimal on a total-liabilities view.

Cash Flow Quality

earnings_quality: OCF and FCF are not disclosed, limiting assessment of cash conversion. The negative effective tax rate (-2.9%) and net income exceeding operating income indicate non-core items influenced bottom line. FCF_analysis: Capex is unreported; the business is typically asset-light, suggesting modest maintenance capex, but this cannot be confirmed. Free cash flow cannot be calculated from available data. working_capital: Accounts receivable of 9.60 (about 24% of YTD revenue) and minimal inventory (0.09) are consistent with a digital service model. Working capital is reported as 133.36, but current liabilities are unreported, so we cannot assess changes or efficiency.

Dividend Sustainability

payout_ratio_assessment: Dividend amounts and payout ratios are unreported; hence no direct assessment of payout discipline is possible. FCF_coverage: OCF and capex are unreported; FCF coverage of dividends cannot be evaluated. Notwithstanding, the large net cash position provides capacity if policy allows and if operating cash flow is positive and stable. policy_outlook: With profitability under pressure and visibility limited, a conservative policy stance would be typical for the sector. Any explicit dividend policy update would be a key catalyst for assessment.

Risk Assessment

Business Risks:

• Advertising and subscription demand volatility impacting revenue (-9.5% YoY).
• High operating leverage causing outsized profit swings (OP -63.6% YoY).
• Competitive pressure from alternative cooking/recipe platforms and social media.
• User engagement and monetization risk (ARPU and MAU trends not disclosed).
• Potential changes in app store fees or platform policies affecting take rates.

Financial Risks:

• Earnings reliance on non-operating/tax items this quarter (negative tax rate).
• Lack of cash flow disclosure, limiting visibility into cash conversion and FCF.
• Currency exposure on any overseas operations or securities (investment details unreported).
• Potential mismatch between reported gross profit and revenue complicating margin analysis.

Key Concerns:

• Sustained top-line contraction and weak operating margin (~5%).
• High fixed cost base (SG&A at ~96% of revenue).
• Unclear recurring cash generation due to missing OCF/FCF data.

Investment Implications

Key Takeaways:

• Revenue declined 9.5% YoY to 40.40 with pronounced operating deleverage.
• Operating income fell 63.6% YoY to 2.01; implied operating margin ~5.0%.
• Net income of 5.38 reflects tax/non-operating support; effective tax rate -2.9%.
• Balance sheet is robust: equity ratio 91%, liabilities 13.98, cash 120.84.
• Gross margin metric is not meaningful this quarter due to presentation effects.
• ROE is modest at 4.2% given low leverage and weak turnover.
• Cash provides a sizable buffer, but earnings visibility is limited without OCF/FCF.

Metrics to Watch:

• Revenue growth (MAU, ARPU, subscription vs ad mix).
• Operating margin trajectory and SG&A control.
• Operating cash flow and free cash flow once disclosed.
• User engagement KPIs and churn for paid services.
• Any changes in capital allocation policy (dividends, buybacks, investments).

Relative Positioning: Versus domestic internet/media peers, Cookpad appears cash-rich and minimally levered but faces weaker revenue momentum and higher earnings volatility, with ROE and operating margin trailing asset-light peers that have steadier top-line growth.

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