Kakaku.com,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥44.86B
• Operating Income: ¥13.84B
• Net Income: ¥9.38B
• EPS: ¥47.36

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

Kakaku.com (TSE:2371) reported FY2026 Q2 consolidated IFRS results with revenue of 448.61 (100M JPY), up a strong 23.4% YoY, indicating solid topline momentum across its portfolio. Despite this growth, operating income declined 1.4% YoY to 138.43, implying meaningful margin compression in the period. Net income was 93.68, down 2.3% YoY, with an effective tax rate of 33.4% (tax expense 45.29 on PBT 135.53). EBITDA was 157.66, yielding a robust 35.1% EBITDA margin, yet the widening gap between EBITDA and operating income points to rising depreciation/amortization and/or operating costs. DuPont decomposition shows net margin of 20.9%, asset turnover of 0.513x, and financial leverage of 1.45x, producing ROE of 15.5% (in line with reported). Cash generation was strong: operating cash flow (OCF) of 139.51 exceeded net income by 1.49x, and free cash flow (FCF) reached 125.48 after modest capex of 2.76. The balance sheet remains conservative with total assets of 875.26 and total equity of 604.66, translating to a high equity ratio of 68.8% and liabilities-to-equity of about 0.52x. Cash and equivalents were 508.59, providing ample liquidity, although current liabilities and interest-bearing debt details were unreported. The company paid dividends of 45.44 via financing cash flows, while overall financing outflows were 53.17, implying continued shareholder returns. While the provided calculated payout ratio is 169.3% and FCF coverage is 0.79x, the cash flow statement suggests cash dividends were covered by FCF in this period; methodology differences may explain the discrepancy. Working capital dynamics appear favorable with current assets of 715.41 and accounts receivable of 133.28, though the absence of current liability details limits ratio analysis. Profitability quality remains good given strong OCF/NI and high cash balances, but the decline in operating profit despite strong revenue implies negative operating leverage in the half. The tax burden was stable, and non-operating items were not disclosed, limiting visibility into below-OP drivers. Overall, Kakaku.com maintains solid returns (ROE 15.5%) with strong cash conversion, a cash-rich and lightly leveraged balance sheet, and healthy liquidity. Key watchpoints are the sustainability of revenue growth, margin recovery, and the alignment of dividend policy with earnings and FCF.

Profitability Analysis

ROE decomposition: ROE 15.5% = Net margin 20.9% x Asset turnover 0.513x x Financial leverage 1.45x. The ROE is healthy and aligned with the reported figure, indicating no apparent distortions from leverage. margin_quality: Operating income fell 1.4% YoY to 138.43 despite revenue rising 23.4% to 448.61, pointing to margin compression. EBITDA margin of 35.1% is strong, but the OP margin (not disclosed) likely contracted due to higher SG&A, marketing, or personnel costs and/or mix effects. Net margin at 20.9% remains high, supported by a standard tax rate (33.4%). operating_leverage: Negative operating leverage this half: strong revenue growth (+23.4% YoY) did not translate into operating profit growth (-1.4% YoY). This suggests incremental revenue carried lower contribution margins or was accompanied by cost step-ups.

Growth Assessment

revenue_sustainability: Topline growth of +23.4% YoY is robust. Sustainability will depend on continued user traffic, advertiser demand, and monetization efficiency across price comparison, restaurant, and travel-related platforms. Lack of segment disclosure limits granularity. profit_quality: OCF/NI of 1.49x and EBITDA of 157.66 indicate earnings backed by cash. The decline in OP and NI suggests near-term pressure on operating efficiency despite healthy cash conversion. outlook: With a high equity ratio (68.8%) and large cash balance (508.59), Kakaku.com is positioned to invest in growth and product enhancements. Near-term, monitor whether cost normalization and mix improvements can restore operating leverage. Tax rate near 33% appears stable; non-operating factors are limited based on available data.

Financial Health

liquidity: Cash & equivalents of 508.59 vs total assets of 875.26 indicates strong liquidity. Current assets are 715.41, but current liabilities are unreported, so current/quick ratios are not calculable. Working capital is sizable at 715.41. solvency: Total liabilities of 313.70 vs equity of 604.66 imply liabilities-to-equity of ~0.52x and an equity ratio of 68.8%, signaling low balance sheet risk. Interest-bearing debt is unreported; interest coverage cannot be assessed. capital_structure: Leverage is modest (financial leverage 1.45x from DuPont). The balance sheet is predominantly equity-funded, offering flexibility for investment and shareholder returns.

Cash Flow Quality

earnings_quality: OCF 139.51 exceeds net income 93.68 (1.49x), indicating strong conversion and limited accrual risk. D&A of 19.23 supports EBITDA-to-OP conversion and non-cash add-backs. FCF_analysis: FCF was 125.48 after minimal capex of 2.76, highlighting an asset-light model. Investing CF of -14.03 suggests additional investment activity beyond capex (e.g., intangibles or financial assets), details unreported. working_capital: Accounts receivable are 133.28; other working capital details are unreported. The strong OCF implies favorable collections and/or efficient working capital management in the period.

Dividend Sustainability

payout_ratio_assessment: The provided calculated payout ratio is 169.3%, indicating distributions above period earnings on that basis. However, cash dividends paid were 45.44 versus net income of 93.68, which would imply a lower cash-based payout; the discrepancy likely reflects differing definitions or period alignment. FCF_coverage: Provided FCF coverage is 0.79x, suggesting dividends exceed FCF by that measure. By direct cash figures this period, FCF of 125.48 would cover cash dividends of 45.44 comfortably; methodology differences cannot be reconciled with available data. policy_outlook: With strong cash balances (508.59) and low leverage, the company has capacity to sustain distributions. Future sustainability hinges on restoring operating leverage to keep earnings growth aligned with payouts, and on clarity around the payout metric used.

Risk Assessment

Business Risks:

• Advertising and lead-generation cyclicality impacting monetization rates
• User traffic volatility due to competitive dynamics and search algorithm changes
• Mix shift toward lower-margin businesses or promotional activities
• Regulatory or policy changes affecting restaurant, travel, or e-commerce partners
• Execution risk in product development and mobile UX engagement

Financial Risks:

• Margin compression despite revenue growth (negative operating leverage)
• Potential mismatch between reported payout ratio and earnings trajectory
• Concentration of revenues in ad/merchant fee models sensitive to macro trends
• Limited disclosure on debt and interest expense limiting coverage analysis

Key Concerns:

• Operating profit decline (-1.4% YoY) despite +23.4% revenue growth
• Unclear drivers of cost increases due to unreported SG&A details
• Dividend metrics inconsistency (169.3% payout vs cash flow coverage figures)

Investment Implications

Key Takeaways:

• Strong topline growth (+23.4% YoY) but margin compression with OP -1.4% YoY
• Healthy ROE at 15.5% driven by 20.9% net margin and modest leverage (1.45x)
• Robust cash generation: OCF 139.51, FCF 125.48 with low capex (2.76)
• Conservative balance sheet: equity ratio 68.8%, liabilities/equity ~0.52x, cash 508.59
• Dividend metrics mixed: reported 169.3% payout and 0.79x FCF coverage vs CF-disclosed dividends covered by FCF

Metrics to Watch:

• Operating margin trend and SG&A intensity (once disclosed)
• Revenue per user/advertiser and traffic metrics by platform (segment details)
• OCF/NI ratio sustainability and working capital movements
• Payout ratio definition and alignment with EPS and FCF
• Asset turnover progression vs historical averages

Relative Positioning: Relative to domestic internet platform peers, Kakaku.com exhibits above-average cash conversion and balance sheet strength, but near-term operating leverage is weaker given margin compression despite strong revenue 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