| Metric | This Period | Prior Year Period | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥49.0B | ¥43.0B | +13.9% |
| Operating Income | ¥10.2B | ¥5.8B | +76.5% |
| Ordinary Income | ¥9.5B | ¥5.8B | +64.4% |
| Net Income | ¥6.1B | ¥3.2B | +92.0% |
| ROE | 2.1% | 2.6% | - |
FY2026 Q1 results delivered substantial profit growth: Revenue ¥49.0B (YoY +¥6.0B +13.9%), Operating Income ¥10.2B (YoY +¥4.4B +76.5%), Ordinary Income ¥9.5B (YoY +¥3.7B +64.4%), Net Income ¥6.1B (YoY +¥2.9B +92.0%). While revenue achieved double-digit growth, Operating Margin expanded to 20.9% (from 13.5% a year earlier, +7.4pt), reflecting higher profitability in the core ASP Ordering System segment and restrained SG&A growth that realized positive operating leverage. Total assets increased to ¥344.0B (prior ¥181.7B), up 89.4%, primarily due to cash procurement from new share issuance and disposal of treasury stock (+¥141.5B) and goodwill increase of ¥11.6B from additional acquisition of Tanomu. Net assets rose to ¥295.6B (prior ¥121.8B), up 142.7%, and Equity Ratio improved to 85.9% (from 66.8%, +19.1pt), further strengthening the financial profile.
[Revenue] Revenue of ¥49.0B (+13.9%) was composed of ASP Ordering System ¥30.5B (+8.9%, 62.2% of total) and ASP Sales Promotion and Ordering System ¥18.5B (+23.3%, 37.8% of total). Core Ordering System maintained stable growth, while Sales Promotion–related business continued the acceleration from the prior year. Gross profit was ¥36.7B (gross margin 74.9%, up 2.3pt from 72.6%), with improved profitability driven by economies of scale in the SaaS platform.
[Profitability] Operating Income ¥10.2B (+76.5%) was achieved by significantly restraining expense growth against revenue increases: SG&A ¥26.5B (+4.0%, SG&A ratio 54.0% improving -5.1pt from 59.1%). Operating margin 20.9% (up 7.4pt YoY) was driven by margin expansion in the core segment. Ordinary Income ¥9.5B (+64.4%) was modestly compressed from Operating Income by non-operating expenses ¥0.8B (including new share issuance costs ¥0.2B and equity-method losses ¥0.4B), which are mainly temporary. Net Income ¥6.1B (+92.0%) is after income taxes and related items of ¥3.4B (effective tax rate 35.6%); the gap between Ordinary Income and Net Income reflects tax burden and does not indicate a structural problem. Conclusion: revenue and profit both increased.
ASP Ordering System delivered Revenue ¥30.5B (+8.9%), Operating Income ¥9.2B (+47.5%), and margin 30.3% (improved +9.4pt from 20.9%), maintaining high profitability as the core business. This segment contributed about 90% of consolidated Operating Income ¥10.2B, serving as the earnings backbone. Conversely, ASP Sales Promotion and Ordering System showed high growth with Revenue ¥18.5B (+23.3%) but Operating Income ¥1.0B (+324.0%, from ¥0.2B a year earlier) and margin 5.5% (improved +3.9pt from 1.6%)—margins remain low. The margin gap between segments is roughly 25 percentage points, meaning consolidated profitability heavily depends on the mix toward the high-margin Ordering System. There are no inter-segment adjustments; sales and profit are all external customer–facing.
[Profitability] Operating margin 20.9% (up +7.4pt YoY), Net margin 12.5% (up +5.1pt YoY) significantly improved, driven by gross margin 74.9% (up +2.3pt) and SG&A ratio 54.0% (down -5.1pt). ROE 2.1% is slightly lower on a quarterly basis versus 2.5% prior year, reflecting denominator expansion due to mid-period capital increases (disposal of treasury shares and new share issuance), while earning power itself has been strengthened. [Cash Quality] Operating Cash Flow (OCF)/Net Income is -0.58x, indicating weak short-term cash realization of profits; main drivers were tax payments and bonus reserve reversals. EBITDA ¥13.8B (Operating Income + depreciation ¥3.5B + goodwill amortization ¥1.2B) yields OCF/EBITDA -0.26x, signaling temporarily low cash conversion efficiency. [Investment Efficiency] Total asset turnover 0.14x is low, but reflects temporary cash buildup and asset expansion post-M&A. Goodwill ¥14.7B equals 1.07x EBITDA and 5.0% of net assets, limiting impairment risk. [Financial Soundness] Equity Ratio 85.9% (up +19.1pt YoY), current ratio 510.7%, cash and deposits ¥203.0B cover short-term borrowings ¥26.0B by 7.8x; financial position is extremely strong. Debt/Capital 8.1%, interest coverage 124x (EBIT/interest expense) — interest burden is minimal.
Operating Cash Flow was -¥3.5B, below Net Income ¥6.1B; main factors were tax payments ¥7.3B, bonus reserve decrease ¥2.6B, and other operating CF negative contributions ¥5.1B. Working capital contributed positively with accounts receivable decrease ¥0.5B and accounts payable increase ¥0.6B, making subtotal operating CF consistent with profits at ¥3.8B, but timing of tax payments and reserve reversals temporarily pressured cash generation. Investing CF was -¥25.8B, led by acquisition of subsidiary shares ¥19.3B (including additional Tanomu acquisition ¥13.0B) and intangible asset acquisitions ¥6.2B. Capital expenditures were minor at ¥0.1B, consistent with a SaaS business model. Financing CF was +¥170.8B, driven by disposal of treasury stock ¥139.4B and new share issuance ¥35.1B, with net increase in short-term borrowings ¥3.3B and dividend payments ¥7.0B being far smaller. Free Cash Flow was -¥29.3B (Operating CF -¥3.5B + Investing CF -¥25.8B), but liquidity is ample given cash balance ¥203.0B and capital procurement. CapEx/depreciation 0.02x (¥0.1B/¥3.5B) shows restrained physical investment, while intangible investment ¥6.2B indicates active software development spending.
Non-operating income ¥0.1B (0.2% of sales) from investment partnership gains etc. is minor; main earnings are recurring from operations. Non-operating expenses ¥0.8B include new share issuance costs ¥0.2B, fees ¥0.1B, equity-method losses ¥0.4B—these are temporary/non-core and do not distort core business earnings. Comprehensive income ¥6.1B equals Net Income ¥6.1B; other comprehensive income items are zero, indicating high transparency of earnings. Accrual ratio (Net Income - OCF) / Total Assets is 2.8%, within high-quality range, though weak cash conversion OCF/Net Income -0.58x remains a monitoring point. Under JGAAP, goodwill amortization ¥1.2B (8.2% of EBITDA) slightly compresses Net Income, but the distortion is moderate and does not raise major concerns about earnings quality.
Full Year guidance: Revenue ¥213.5B (+13.5%), Operating Income ¥50.0B (+74.6%), Ordinary Income ¥48.4B (+70.5%), Net Income ¥30.97B, EPS ¥11.92, DPS ¥3.29. Q1 progress rates: Revenue 22.9% (standard 25% -2.1pt), Operating Income 20.5% (standard -4.5pt), Ordinary Income 19.6% (standard -5.4pt), which are somewhat below standard for profits. Revenue progress is within an acceptable range, but profit progress lags, possibly due to front-loaded expenses (personnel, promotion), goodwill amortization, and timing of tax payments. If seasonality weighted to H2 and acceleration in high-margin segments materialize, full-year targets remain achievable, but improvement in Operating Cash Flow and maintenance of margins from Q2 onward are key. No revisions to earnings or dividend forecasts this quarter.
Dividend payments this quarter of ¥7.0B were timing payments based on prior-period profits and temporarily exceeded quarterly Net Income ¥6.1B. Full-year DPS ¥3.29 and assumed shares outstanding 267.5 million imply total annual dividends of about ¥8.8B; payout ratio versus forecast Net Income ¥30.97B is approximately 28%, sustainable. Cash balance ¥203.0B and Debt/EBITDA 1.89x provide ample dividend capacity. Given the recurring revenue model and low leverage, policy to maintain stable dividends is reasonable. No share buyback disclosure; this period increased shareholders’ equity via disposal of treasury stock ¥139.4B.
Segment concentration risk: ASP Ordering System accounts for 62.2% of revenue and about 90% of Operating Income, so slowdown, intensified competition, or client attrition in this segment would directly impact consolidated results. Maintaining the high 30.3% margin is a premise; price competition or feature competition could compress profitability.
Cash conversion risk: OCF/Net Income -0.58x and OCF/EBITDA -0.26x show short-term weak cash realization; timing of tax payments and bonus reserve reversals are main causes, but prolonged lengthening of receivable collection or lax credit control could worsen working capital. Accounts receivable ¥33.3B (prior ¥33.8B) slightly decreased, but DSO trends require continued monitoring.
M&A integration risk: Additional acquisition of Tanomu increased goodwill by ¥11.6B to total ¥14.7B (5.0% of net assets). Goodwill amortization burden ¥1.2B per quarter (annualized ~¥5B) compresses profits; integration delays or failure to realize synergies could trigger impairment risk, causing one-off losses and profitability decline. Goodwill/EBITDA 1.07x is currently acceptable, but validation of growth assumptions is necessary.
Profitability & Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 20.9% | 6.2% (4.2%–17.2%) | +14.7pt |
| Net Margin | 12.5% | 2.8% (0.6%–11.9%) | +9.7pt |
Profitability metrics significantly exceed industry medians, reflecting high-margin core SaaS platform and cost efficiency.
Growth & Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 13.9% | 20.9% (12.5%–25.8%) | -7.0pt |
Revenue growth trails the industry median but is above the IQR lower bound (12.5%), consistent with a management stance prioritizing balance between growth and profitability.
※ Source: Company aggregation
Structural improvement in profitability progressed, with Operating Margin 20.9% (+7.4pt YoY) and Net Margin 12.5% (+5.1pt YoY). The core ASP Ordering System margin of 30.3% (up +9.4pt YoY) led this improvement; economies of scale and operational efficiency have revealed positive operating leverage. SG&A ratio 54.0% (down -5.1pt YoY) evidences expense management and suggests mid-term reinforcement of the earnings base. Versus industry benchmarks, Operating Margin +14.7pt and Net Margin +9.7pt place the company in a leading position, indicating competitive advantage in the metrics.
Significant strengthening of the financial profile enhances downside resilience. Disposal of treasury stock ¥139.4B and new share issuance ¥35.1B increased cash to ¥203.0B (59.0% of total assets) and improved Equity Ratio to 85.9% (up +19.1pt YoY), materially raising liquidity and safety. Cash covers short-term borrowings ¥26.0B by 7.8x; Debt/Capital 8.1% and interest coverage 124x indicate minimal interest burden. Goodwill ¥14.7B post-M&A (5.0% of net assets, 1.07x EBITDA) remains within acceptable levels, showing capital allocation that balances strategic investment and financial strength.
Short-term weakness in cash conversion efficiency is a focus going forward. OCF/Net Income -0.58x and OCF/EBITDA -0.26x indicate temporary stagnation in profit-to-cash conversion, driven mainly by tax payments ¥7.3B and bonus reserve reversals ¥2.6B. Working capital contributed positively, so this is not structural deterioration, but normalization of operating cash flow from Q2 onward (OCF/Net Income >1.0x, OCF/EBITDA >0.9x) is a precondition for sustained growth. The full-year profit progress 20.5% below standard 25% also implies that H2 acceleration in earnings and cash is key; monitoring NRR, churn, ARPU and order trends is important.
This report is an earnings analysis document automatically generated by AI analyzing XBRL financial statement data. It does not constitute a recommendation to invest in specific securities. Industry benchmarks are reference information compiled by the Company based on public financial statement data. Investment decisions are your responsibility; consult professionals as needed before making investment decisions.