Dynamic Map Platform Co.,Ltd. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥2.45B
• Operating Income: ¥-1.14B
• Net Income: ¥-1.42B
• EPS: ¥-49.26

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

Dynamic Map Platform Co., Ltd. (336A0) posted FY2026 Q2 consolidated results under JGAAP showing continued losses despite modest top-line growth. Revenue rose 9.0% year over year to ¥2,451 million, but profitability remained weak with operating loss of ¥1,142 million (flat YoY) and net loss of ¥1,163 million (also flat YoY). Reported gross profit was negative at ¥-93 million, implying a gross margin of -3.8%, signaling pricing pressure and/or cost overhang at the cost-of-sales level. EBITDA was ¥-937 million, yielding an EBITDA margin of -38.2%, underscoring a heavy fixed-cost base and limited operating leverage at current scale. Ordinary loss was ¥1,073 million, with interest expense of ¥101 million, translating into a negative interest coverage ratio of -11.3x on an EBIT basis. DuPont metrics indicate ROE of -15.54%, driven by a net margin of -47.45%, modest asset turnover of 0.202x, and financial leverage of 1.62x. Operating cash flow was negative at ¥724 million; the OCF to net income ratio of 0.62 suggests losses are partly cash-based but also reflect non-cash charges (e.g., depreciation of ¥205 million) and working capital movements. The balance sheet shows total assets of ¥12,105 million and total equity of ¥7,483 million, implying an equity ratio of roughly 61.8% by calculation, despite a reported equity ratio of 0.0% (likely an undisclosed field). Liquidity appears adequate on reported figures with a current ratio of 208.5% and working capital of ¥6,538 million, though cash and equivalents were undisclosed. The debt-to-equity ratio stands at 0.94x, reflecting moderate leverage relative to equity. Financing cash flow was negative at ¥954 million, indicating net outflows from financing activities during the period. Dividend payments remain suspended (DPS ¥0.00), consistent with the company’s loss-making position and reinvestment needs. The revenue increase alongside an unchanged operating loss implies limited incremental contribution margin, suggesting the need for improved gross margin or opex efficiency to pivot toward breakeven. Data limitations are present: multiple items show as zero due to non-disclosure (e.g., cash balance, share count, FCF), and there are mapping anomalies (e.g., current assets exceeding total assets and gross profit incongruence with line items); analysis below relies on the provided non-zero values and calculated metrics. Overall, the company remains in an investment phase with negative margins and cash burn but maintains a capital structure that, on reported figures, can absorb near-term losses if liquidity is indeed adequate.

Profitability Analysis

ROE decomposition: Reported DuPont ROE is -15.54%, comprised of net profit margin -47.45%, asset turnover 0.202x, and financial leverage 1.62x. The ROE is primarily depressed by the deeply negative margin rather than excessive leverage or asset intensity. Margin quality: Gross margin is reported at -3.8% (gross profit -¥93 million on ¥2,451 million revenue), pointing to pricing pressure and/or elevated delivery costs; this significantly constrains operating leverage. EBITDA margin of -38.2% and operating margin of -46.6% (operating loss ¥1,142 million on revenue ¥2,451 million) indicate a heavy fixed cost base and insufficient scale. Operating leverage: Despite +9.0% YoY revenue, operating loss was flat YoY, implying little incremental margin and highlighting that cost growth offset revenue gains; structural cost reductions or mix improvements are needed to convert growth into profit. Financial expenses: Interest expense of ¥101 million against negative EBIT yields an interest coverage ratio of -11.3x, indicating that core operations do not currently cover financing costs.

Growth Assessment

Revenue grew 9.0% YoY to ¥2,451 million, indicating underlying demand growth or progress in commercialization. However, negative gross profit and flat YoY operating loss suggest revenue quality and pricing may be challenged, or cost of fulfillment remains high. The gap between EBITDA (-¥937 million) and operating loss (-¥1,142 million) is consistent with tangible non-cash costs (¥205 million depreciation and amortization), but does not change the underlying loss trajectory. With asset turnover at 0.202x, utilization of the asset base remains low; scaling revenue against existing assets could improve returns if margins normalize. Outlook hinges on improving gross margins via pricing, product mix, or cost-of-service efficiencies, and on arresting opex growth relative to sales. In the absence of disclosed backlog, segment mix, or guidance, we assume mid-teens to high-single digit revenue growth remains possible near term, but profitability inflection requires structural cost improvements.

Financial Health

Liquidity: Current assets of ¥12,562 million vs current liabilities of ¥6,024 million produce a current ratio of 208.5% and working capital of ¥6,538 million, suggesting ample coverage of near-term obligations on reported figures. Quick ratio mirrors the current ratio due to undisclosed inventories (reported as 0); however, the undisclosed cash balance limits visibility into immediate liquidity. Solvency: Total liabilities are ¥7,016 million against total equity of ¥7,483 million, resulting in a debt-to-equity ratio of 0.94x. Calculated equity ratio is approximately 61.8% (¥7,483m / ¥12,105m), despite an undisclosed reported equity ratio field (0.0% placeholder). Capital structure appears balanced, though ongoing losses and interest expense (¥101 million) highlight the importance of preserving liquidity or securing committed funding lines. Note: Current assets exceeding total assets indicates a likely classification or disclosure mapping anomaly; conclusions prioritize non-zero provided metrics.

Cash Flow Quality

Earnings quality: OCF of -¥724 million versus net loss of -¥1,163 million yields an OCF/NI ratio of 0.62, indicating a substantial portion of the accounting loss is non-cash (depreciation ¥205 million) and/or timing-related in working capital. Free cash flow: FCF is undisclosed (0 placeholder). With investing cash flow undisclosed (0 placeholder), we cannot compute true FCF; however, negative OCF implies cash burn before investments. Working capital: Specific line-item movements are not provided, but the OCF shortfall suggests either receivable build, contract asset growth, or other operating asset outflows alongside the loss. Financing flows: Financing CF of -¥954 million indicates net repayments or absence of new financing offset by outflows; without cash balance disclosure, runway assessment is constrained.

Dividend Sustainability

Dividend policy remains conservative with DPS at ¥0.00 and payout ratio 0.0%, appropriate given sustained operating and net losses. With OCF negative and FCF undisclosed, there is no coverage for dividends from internal cash generation. Near-term reinstatement would require a clear path to positive OCF and improved profitability, or explicit policy signaling backed by balance sheet capacity. Until margins normalize and cash burn moderates, maintaining a no-dividend stance aligns with capital preservation.

Risk Assessment

Business Risks:

• Sustained negative gross and operating margins indicating pricing pressure and/or high delivery costs
• Execution risk in scaling revenue with positive contribution margins
• Dependence on large projects or customers could exacerbate revenue volatility (not disclosed but typical for platform/data businesses)
• Technology and product roadmap risk affecting commercialization timeline
• Competitive pressures potentially limiting pricing power

Financial Risks:

• Negative OCF (¥-724 million) and continued operating losses strain liquidity over time
• Interest burden (¥101 million) not covered by operating earnings (interest coverage -11.3x)
• Disclosure gaps (undisclosed cash, FCF) hinder cash runway visibility
• Potential need for additional financing if losses persist
• Balance sheet presentation anomalies (e.g., current assets > total assets) complicate analysis

Key Concerns:

• Gross margin reported negative (-3.8%) despite revenue growth
• Operating loss flat YoY despite +9.0% revenue, signaling weak operating leverage
• Limited visibility on cash and investment outflows due to undisclosed items
• ROE negative at -15.54% driven by a -47.45% net margin

Investment Implications

Key Takeaways:

• Top-line grew 9.0% YoY to ¥2.45bn, but profitability remains deeply negative across gross, EBITDA, and operating levels
• ROE of -15.54% primarily reflects a severely negative net margin, not excessive leverage
• Liquidity metrics appear strong on reported figures (current ratio 2.09x), but cash balance is undisclosed, limiting runway assessment
• OCF/NI of 0.62 shows some non-cash components, yet core cash burn persists
• Interest coverage is negative (-11.3x), highlighting sensitivity to financing conditions

Metrics to Watch:

• Gross margin trajectory and cost of sales efficiency
• Operating expense growth versus revenue (incremental margin)
• Operating cash flow and disclosure of investing cash flows to derive true FCF
• Cash and equivalents and committed credit lines
• Order/backlog indicators and asset turnover improvements

Relative Positioning: Within Japan-listed loss-making, scaling-stage tech/platform companies, Dynamic Map Platform exhibits comparatively solid balance sheet leverage (D/E 0.94x, calculated equity ratio ~62%) but weaker near-term margin profile (gross margin -3.8%, EBITDA margin -38.2%) and negative operating cash flow; sustained improvement in unit economics is required to converge toward peer breakeven profiles.

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