Ai ROBOTICS INC. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥10.54B
• Operating Income: ¥701M
• Net Income: ¥468M
• EPS: ¥7.95

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

Aiロボティクス株式会社 (247A0) reported strong top-line momentum in FY2026 Q2 with revenue of ¥10,542m, up 66.4% YoY, but profitability contracted sharply as operating income fell 41.7% YoY to ¥701m and net income declined 42.7% YoY to ¥468m. The net margin stands at 4.44%, while the operating margin is approximately 6.6%, indicating notable compression versus the prior year. Gross profit is ¥5,013m, implying a gross margin of 47.6%; this aligns internally, but the reported cost of sales of ¥1,322m appears inconsistent with the gross profit subtotal (would imply cost of sales of roughly ¥5,529m). We rely on the internally consistent revenue and gross profit figures for margin interpretation. The DuPont framework indicates ROE of 12.25%, driven by a 4.44% net margin, 1.094x asset turnover, and 2.52x financial leverage, suggesting reasonable returns given the company’s balance sheet. Operating cash flow of ¥609m exceeds net income (OCF/NI = 1.30x), signaling solid near-term earnings quality and positive working-capital contribution. Liquidity is strong with a current ratio of 239% and working capital of ¥3,816m, providing ample headroom to fund operations. Leverage appears moderate with liabilities-to-equity of 0.96x and interest expense of only ¥6.3m, producing very high interest coverage (111x) on an EBIT basis. EBITDA is ¥716m with a margin of 6.8%, indicating modest operating efficiency given the high gross margin, pointing to elevated SG&A or growth investments. Despite revenue acceleration, the negative operating leverage (OI down YoY) implies cost intensity rising faster than gross profit, likely from headcount, R&D, or customer acquisition costs. The reported effective tax rate metric of 0.0% is not reliable in light of income tax expense of ¥344m; tax optics are distorted by data presentation and possibly non-operating items. Several key datapoints were not disclosed in XBRL (e.g., cash and equivalents, investing cash flow, inventories, share count, equity ratio), limiting depth on capital allocation and per-share analysis. Dividend payments are currently nil (DPS ¥0), consistent with a reinvestment stance during a scaling phase. Overall, the company exhibits strong growth and adequate financial flexibility, but margin compression and limited disclosure on capex/FCF temper visibility on medium-term free cash flow. Our assessment emphasizes monitoring margin recovery, cost discipline, and clarity on investment needs to sustain growth without eroding returns.

Profitability Analysis

ROE_decomposition: ROE 12.25% = Net margin 4.44% × Asset turnover 1.094 × Financial leverage 2.52. Net profitability is modest, asset utilization is healthy for a software/solutions-oriented model, and leverage is moderate, jointly producing a mid-teens ROE. margin_quality: Gross margin 47.6% (¥5,013m/¥10,542m) is solid, implying meaningful value-add or software/service mix. Operating margin ~6.6% (¥701m/¥10,542m) is much lower, indicating heavy SG&A or growth investments absorbing gross profit. Net margin 4.44% reflects additional non-operating costs and taxes. Note: reported cost of sales (¥1,322m) is inconsistent with gross profit; margin comments rely on revenue and gross profit subtotals which are internally consistent. operating_leverage: Revenue grew 66.4% YoY while operating income fell 41.7% YoY, indicating negative operating leverage in the period. This suggests step-up investments (sales capacity, R&D, marketing) or cost inflation outpacing gross profit gains. Restoring operating leverage will be key to margin normalization.

Growth Assessment

revenue_sustainability: Top-line growth of +66.4% YoY is robust and likely driven by strong demand and/or contract wins. Sustainability will depend on retention, ARR growth (if applicable), and pipeline conversion. profit_quality: Despite strong revenue, margins compressed and OI/NI declined materially. The high gross margin supports a path to improved profitability if SG&A growth moderates. Positive OCF/NI (1.30x) supports earnings quality. outlook: Near-term outlook hinges on balancing growth investments with cost control. If revenue momentum persists and cost intensity stabilizes, operating margins could recover. Tax rate visibility is limited due to data anomalies; normalized effective tax rate remains uncertain.

Financial Health

liquidity: Current assets ¥6,557m vs current liabilities ¥2,741m → current ratio 239% and quick ratio 239% (inventories not disclosed). Working capital is ¥3,816m, indicating strong short-term solvency. solvency: Total liabilities ¥3,656m and equity ¥3,821m → liabilities-to-equity 0.96x, indicating moderate leverage. Interest expense is low (¥6.3m), consistent with very high interest coverage (111x). capital_structure: Financial leverage (assets/equity) is 2.52x (¥9,639m/¥3,821m), supporting ROE without excessive balance sheet risk. Debt mix and cash balances are not disclosed, limiting granular assessment of net leverage.

Cash Flow Quality

earnings_quality: OCF of ¥609m exceeds net income of ¥468m (OCF/NI 1.30x), indicating supportive working capital and non-cash items. Depreciation/amortization is modest at ¥15m, consistent with an asset-light profile. FCF_analysis: Investing cash flow is undisclosed (reported as 0), and cash balance is undisclosed, making free cash flow calculation unreliable despite a stated FCF of 0 in the metrics. True FCF cannot be assessed without capex and investment details. working_capital: With strong current ratios and positive OCF, working capital management appears supportive. However, inventories are undisclosed; receivables and payables detail is absent, so cash conversion cycle cannot be analyzed.

Dividend Sustainability

payout_ratio_assessment: DPS is ¥0 and payout ratio is 0.0%, reflecting retention of earnings. Given revenue scale-up and margin pressure, reinvestment prioritization appears consistent with growth needs. FCF_coverage: FCF is not determinable due to undisclosed investing cash flows; hence dividend coverage by FCF cannot be evaluated. On an earnings basis, capacity exists but would depend on future capex. policy_outlook: With strong growth and a need to re-establish operating leverage, a conservative dividend stance is likely until FCF visibility improves and margins normalize.

Risk Assessment

Business Risks:

• Margin compression amid rapid scaling (negative operating leverage).
• Customer concentration or contract timing risk typical for enterprise sales (not disclosed, but relevant).
• Execution risk in hiring, onboarding, and sales productivity.
• Competitive intensity in AI/software solutions pushing pricing or requiring high customer acquisition spend.
• Regulatory and data governance risks for AI-related products.

Financial Risks:

• Limited disclosure on cash and investment flows, obscuring FCF and liquidity buffers.
• Potential tax rate volatility; inconsistency between tax expense and calculated effective tax rate metric.
• Dependence on working capital dynamics to sustain OCF.
• Moderate leverage with unknown debt maturity profile and covenants.

Key Concerns:

• Inconsistency between reported cost of sales and gross profit subtotal; margin analysis relies on subtotals.
• Undisclosed cash, investing cash flow, inventories, and share count limit per-share and FCF assessments.
• Operating income decline despite strong revenue growth highlights cost discipline challenges.

Investment Implications

Key Takeaways:

• Strong top-line growth (+66.4% YoY) but significant margin compression (OI -41.7% YoY).
• ROE at 12.25% supported by healthy asset turnover and moderate leverage.
• Solid liquidity (current ratio 239%) and high interest coverage (111x) mitigate near-term balance sheet risk.
• OCF exceeds net income (1.30x), indicating supportive earnings quality.
• FCF visibility is limited due to undisclosed investing cash flows; capex intensity unknown.

Metrics to Watch:

• Operating margin trajectory and SG&A as a percentage of revenue.
• Gross margin stability (confirmation of cost of sales classification).
• Contracted backlog/ARR and churn (if applicable) to gauge durability of growth.
• Capex and investing cash flows to establish true FCF.
• Tax rate normalization and reconciliation to statutory/adjusted ETR.
• Cash balance and net debt to assess funding capacity.

Relative Positioning: Compared to domestic AI/software peers, Aiロボティクス shows above-peer revenue growth with mid-pack profitability and strong liquidity. Sustained leadership will depend on translating high gross margins into improving operating margins while maintaining 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