All About,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥7.89B
• Operating Income: ¥-23M
• Net Income: ¥-155M
• EPS: ¥-4.40

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

All About, Inc. (TSE:2454) reported FY2026 Q2 consolidated results under JGAAP with revenue of ¥7.895bn, up 5.9% YoY, indicating modest top-line momentum. Gross profit reached ¥4.462bn, implying a robust gross margin of 56.5%, which underscores pricing power and/or a relatively asset-light, content/marketing-heavy mix. Despite strong gross profitability, operating income remained slightly negative at ¥-23m (operating margin -0.3%), an 825.9% YoY improvement in loss magnitude, suggesting cost discipline or operating leverage beginning to materialize. Ordinary income was ¥-25m and net income ¥-61m (net margin -0.8%), broadly consistent with the operating loss profile and reflecting minimal non-operating volatility. EBITDA was positive at ¥161.9m (2.1% margin), supported by ¥185.0m in D&A, showing that cash earnings before working capital are positive even as accounting profit is marginally negative. The DuPont framework shows a net margin of -0.77%, asset turnover of 0.887x, and financial leverage of 2.03x, yielding an ROE of -1.39%—a contained negative return primarily driven by thin losses rather than balance sheet strain. Liquidity appears sound: current ratio 154.7%, quick ratio 144.8%, and working capital of ¥2.122bn, indicating comfortable near-term funding capacity. The balance sheet is relatively conservative, with total liabilities of ¥3.964bn versus equity of ¥4.391bn (liabilities-to-equity ~0.90x) and minimal reported interest expense, pointing to low financial risk from leverage. Operating cash flow was slightly negative at ¥-6.4m despite positive EBITDA, implying working capital absorption or timing effects offsetting non-cash add-backs; this warrants monitoring but is not alarming given the small magnitude. Investing cash flow and cash/equivalents were unreported in XBRL (appearing as zero), limiting visibility on capex intensity and liquidity buffers; conclusions on free cash flow are therefore constrained. The tax line reflects a benefit (income tax ¥-42.1m), consistent with losses; effective tax rate figures are not meaningful in a loss period. Dividend policy remains conservative with DPS at ¥0, appropriate given the small net loss and limited cash flow disclosure. Overall, the company exhibits improving loss trajectory, strong gross economics, and adequate liquidity, but needs to translate EBITDA into positive OCF consistently and restore operating margin to sustainably positive territory. Revenue growth quality appears reasonable, but execution on opex efficiency and working capital management will be key to lifting ROE into positive territory. Data limitations (notably cash, investing CF, and share data) temper the depth of our conclusions, but available non-zero items indicate stable fundamentals with modest cyclical or execution risk rather than structural stress.

Profitability Analysis

ROE decomposition (DuPont): Net margin -0.77% × asset turnover 0.887 × financial leverage 2.03 = ROE -1.39%, aligned with the reported figure. The negative ROE is primarily margin-driven; leverage is moderate and asset efficiency is reasonable for a digital media/marketing model. Operating margin was -0.3% (¥-23m on ¥7.895bn), a sharp YoY improvement in loss size (implied narrower loss), indicating early operating leverage as revenue grows. Gross margin of 56.5% is strong, evidencing healthy unit economics; the margin gap between gross and operating levels points to SG&A intensity (content, personnel, sales/marketing) as the profitability swing factor. EBITDA margin of 2.1% shows the core engine is close to breakeven on a cash basis pre-working capital; incremental gross profit should translate efficiently as fixed costs are absorbed. Ordinary income and net income largely track operating performance, with minimal non-operating drag and a tax benefit due to losses. ROA (approx.) is -0.7% (net margin × asset turnover), highlighting a small loss footprint rather than asset inefficiency. Sustainability of margins will depend on controlling SG&A growth relative to revenue and capturing scale benefits in H2.

Growth Assessment

Revenue increased 5.9% YoY to ¥7.895bn, a steady pace consistent with incremental share gains or product mix tailwinds in core media/marketing solutions. The quality of growth appears acceptable given stable-to-strong gross margin at 56.5%, suggesting no heavy discounting to drive top line. EBITDA improvement alongside revenue growth indicates a degree of operating leverage; however, the still-negative operating margin shows more cost take-out or mix improvement is needed. Net loss narrowed (operating loss improved by 825.9% YoY), implying execution progress versus the prior period’s deeper losses. Outlook hinges on seasonality and continued cost efficiency—if H2 is stronger, small revenue increments could push the company into positive operating and net margins. Risks to growth quality include potential client budget volatility, advertising demand cyclicality, and project timing, which can affect quarterly revenue recognition and working capital. With limited disclosure on segment mix or new initiatives in this dataset, we assume growth is primarily organic and marketing/media-led.

Financial Health

Total assets are ¥8.897bn and equity ¥4.391bn, implying an equity ratio of roughly 49% (calculated), despite the reported 0.0% (unreported). Liabilities total ¥3.964bn; the liabilities-to-equity ratio is ~0.90x, suggesting moderate leverage overall. Current assets are ¥6.0bn vs current liabilities of ¥3.878bn, yielding a current ratio of 154.7% and a quick ratio of 144.8% (inventory ¥385m is modest), indicating strong short-term liquidity. Working capital stands at ¥2.122bn, providing a buffer against timing swings in receivables and payables. Interest expense is unreported (appears as ¥0) and interest coverage is not meaningful in this context; the absence of visible interest burden suggests low interest-bearing debt or net cash historically, though cash is not disclosed here. Solvency appears sound given the substantial equity base and manageable liabilities. The slight net loss does not pose immediate balance sheet concerns, but sustained losses could gradually erode equity if not reversed.

Cash Flow Quality

Operating cash flow was ¥-6.4m, notably better than net income of ¥-61m (OCF/NI ≈ 0.10 on a signed basis), implying that non-cash charges (D&A ¥185m) and tax benefits offset much of the accounting loss, but were nearly neutralized by working capital outflows and/or timing effects. Positive EBITDA (¥162m) versus negative OCF suggests a working capital build on the order of ~¥130m+ when adjusting for D&A and tax benefit; this may reflect receivables timing or project advances. Investing cash flow is unreported (appearing as ¥0), preventing assessment of capex intensity or M&A. Free cash flow is therefore not derivable with confidence; the reported FCF of 0 should be treated as “not disclosed.” Earnings quality is mixed: EBITDA is positive and net losses are small, but conversion to cash was slightly negative this period, reinforcing the need to monitor receivable days, payable terms, and deferred revenue. The tax cash impact appears favorable this quarter (tax benefit), but not a recurring support. Overall, cash generation is near breakeven on an operating basis, with variability likely tied to working capital seasonality.

Dividend Sustainability

DPS is ¥0 with a payout ratio of 0%, consistent with a prudent stance amid small net losses and limited visibility on FCF. With positive EBITDA but negative OCF in the period and unreported investing cash flows, there is insufficient evidence to support distributions without risking balance sheet flexibility. The equity base and liquidity are adequate, but the priority should remain restoring sustainable operating margins and stabilizing cash conversion. Policy outlook: likely conservative until consistent profitability and positive OCF/FCF are demonstrated, after which a modest payout could be considered subject to growth investment needs.

Risk Assessment

Business Risks:

• Advertising and client budget cyclicality impacting media/marketing revenues
• Execution risk in scaling while controlling SG&A, given thin operating margin
• Working capital volatility affecting quarterly cash conversion
• Competitive pressure in digital media, SEO/SEM, and performance marketing
• Content/traffic dependency and algorithm/platform changes influencing monetization

Financial Risks:

• Sustained small losses could gradually dilute equity if not reversed
• Limited visibility on cash and investing cash flows (capex/M&A) due to unreported items
• Customer concentration or receivable collection risks (implied by OCF variability)
• Potential refinancing or liquidity planning challenges if cash buffers are lower than assumed (cash not disclosed)

Key Concerns:

• Operating margin still negative at -0.3% despite strong gross margin
• OCF marginally negative versus positive EBITDA, pointing to working capital drag
• Data gaps: cash balance, investing CF, and share base not disclosed, constraining precision of FCF and per-share analyses

Investment Implications

Key Takeaways:

• Top-line up 5.9% YoY to ¥7.895bn with strong 56.5% gross margin, indicating solid unit economics
• Operating loss narrowed significantly to ¥-23m; EBITDA positive at ¥162m, suggesting near-breakeven core operations
• ROE -1.39% driven by thin negative margins; leverage moderate (equity multiplier 2.03x)
• Liquidity is comfortable (current ratio 155%, quick ratio 145%, working capital ¥2.12bn)
• OCF slightly negative due to working capital; FCF not assessable given unreported investing CF
• Dividend remains suspended (DPS ¥0), appropriate until profitability and cash conversion stabilize

Metrics to Watch:

• Operating margin progression and SG&A ratio to sales
• OCF and working capital movements (DSO/DPO/DIO) and conversion of EBITDA to cash
• Revenue growth trajectory and gross margin stability by business line
• Asset turnover and ROE improvement from margin expansion
• Any disclosure on capex/M&A and cash balances to refine FCF outlook

Relative Positioning: Relative to domestic digital media and marketing peers, All About shows healthy gross margins and manageable balance sheet leverage but lags on operating margin consistency and cash conversion; modest revenue growth and improving loss trajectory suggest potential operating leverage if SG&A discipline continues.

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