m-up holdings,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥15.11B
• Operating Income: ¥2.70B
• Net Income: ¥1.01B
• EPS: ¥47.83

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment 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

For FY2026 Q2, M-UP Holdings delivered strong top-line and earnings momentum, with revenue of ¥15.107bn (+23.2% YoY) and operating income of ¥2.701bn (+38.0% YoY). Net income rose to ¥1.699bn (+103.8% YoY), lifting the net margin to 11.25%, indicating meaningful operating leverage and better cost discipline. DuPont decomposition points to a robust ROE of 17.46%, supported by an 11.25% net margin, asset turnover of 0.570x, and financial leverage of 2.73x. EBITDA was ¥2.822bn, implying an 18.7% EBITDA margin and confirming healthy operating efficiency given modest D&A of ¥121m. Ordinary income of ¥2.793bn slightly exceeded operating income, suggesting incremental non-operating gains. Operating cash flow reached ¥1.887bn, yielding an OCF/Net Income ratio of 1.11, which supports the quality of reported earnings. Liquidity remains sound with a current ratio of 125.7% and working capital of ¥4.036bn, giving comfort against short-term obligations. Based on total equity of ¥9.73bn and total assets of ¥26.525bn, the equity ratio (equity/asset) computes to about 36.7% despite the reported field showing 0.0% (likely an undisclosed item rather than a true zero). Leverage appears moderate with debt-to-equity of 1.63x (on a liabilities/equity basis), consistent with the 2.73x financial leverage used in the DuPont analysis. Cash and equivalents, investing cash flow, and certain share-related metrics were undisclosed, limiting visibility on cash buffers, capital intensity, and per-share metrics. The gross profit disclosed (¥3.823bn) implies a 25.3% gross margin; however, it does not arithmetically reconcile with revenue minus cost of sales, indicating potential line-item naming/aggregation differences in the source. The effective tax rate field shows 0.0%, but the income tax expense of ¥731m versus ordinary income implies a mid-20% indicative tax burden; the difference between pre-tax and net income also suggests minority interests or special items. With OCF exceeding net income and EBITDA margin rising, cash generation quality looks solid, though lack of investing cash flow disclosure prevents a clear free cash flow view. Dividend data were not disclosed (DPS and payout shown as zero reflect non-disclosure), so distribution policy and sustainability cannot be assessed from this dataset. Overall, the company exhibits improving profitability, healthy operating leverage, and adequate liquidity, but incomplete cash and dividend disclosures, plus some line-item inconsistencies, warrant cautious interpretation.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 11.25%
• asset_turnover: 0.570x (Revenue ¥15.107bn / Assets ¥26.525bn)
• financial_leverage: 2.73x (Assets ¥26.525bn / Equity ¥9.73bn)
• calculated_ROE: 17.46% (matches reported) margin_quality:
• gross_margin: 25.3% based on disclosed gross profit of ¥3.823bn; note arithmetic inconsistency with revenue (¥15.107bn) and cost of sales (¥8.443bn).
• operating_margin: 17.9% (Operating income ¥2.701bn / Revenue ¥15.107bn)
• EBITDA_margin: 18.7% (EBITDA ¥2.822bn / Revenue ¥15.107bn)
• net_margin: 11.25% (Net income ¥1.699bn / Revenue ¥15.107bn) operating_leverage: Revenue grew 23.2% YoY while operating income grew 38.0% YoY, indicating positive operating leverage. The gap between EBITDA and operating margin is small due to low D&A (¥121m), suggesting an asset-light model where incremental revenue converts efficiently to operating profit.

Growth Assessment

revenue_sustainability: Top-line growth of +23.2% YoY indicates solid demand, likely driven by digital content, fan/community services, and e-commerce/merchandising. Sustainability will depend on IP partner additions, ARPU expansion, and retention in fan platforms. profit_quality: Operating income expanded faster than revenue (+38.0% YoY), implying better cost absorption or improved mix. Ordinary income exceeded operating income, pointing to non-operating tailwinds; durability of these gains should be monitored. outlook: With ROE at 17.46% and rising operating margins, near-term momentum appears favorable. Key drivers include expansion of artist/IP portfolios, monetization of fan engagement, and disciplined SG&A. Risk factors include client/IP concentration, event-driven cyclicality, and potential normalization of non-operating gains.

Financial Health

liquidity: Current assets ¥19.743bn vs current liabilities ¥15.707bn yields a current ratio of 125.7% and quick ratio of 125.7% (inventories undisclosed). Working capital stands at ¥4.036bn, offering a comfortable short-term cushion. solvency: Computed equity ratio is ~36.7% (Equity ¥9.73bn / Assets ¥26.525bn), despite the reported field showing 0.0% due to non-disclosure. Debt-to-equity (using total liabilities) is 1.63x, in line with moderate leverage for an asset-light, platform-oriented model. capital_structure: Financial leverage of 2.73x suggests balanced use of liabilities to fund assets. Interest expense was undisclosed (0), making interest coverage metrics non-informative; however, strong operating income provides buffer against potential financing costs should they materialize.

Cash Flow Quality

earnings_quality: OCF/Net Income at 1.11 indicates that earnings are backed by cash generation, a positive sign. Low D&A (¥121m) versus EBITDA suggests limited non-cash padding of earnings. FCF_analysis: Investing cash flow was undisclosed (0), so true capex and acquisition outflows are unknown, preventing a reliable free cash flow calculation. The provided FCF of 0 should be treated as non-disclosure rather than zero. working_capital: With working capital of ¥4.036bn and positive OCF, working capital management appears supportive of cash generation. Detailed components (receivables, payables, contract liabilities) were not disclosed, limiting granularity.

Dividend Sustainability

payout_ratio_assessment: Dividend per share and payout ratio were not disclosed (shown as 0.00). As such, payout assessment cannot be performed from this dataset. FCF_coverage: Free cash flow information was not disclosed; therefore, FCF-based coverage of dividends cannot be evaluated. policy_outlook: Absent dividend policy data, assessment shifts to capacity: current profitability (net income ¥1.699bn, OCF ¥1.887bn) suggests potential capacity for distributions, but policy and capital allocation priorities (growth investment/M&A) are unknown.

Risk Assessment

Business Risks:

• Concentration in key entertainment IPs/artists and client relationships.
• Volatility tied to live events, fan engagement cycles, and merchandise demand.
• Platform and content monetization risks (churn, ARPU pressure).
• Regulatory and contractual risks related to digital content rights and ticketing.
• Cybersecurity and data privacy risks in fan platforms and e-commerce.
• Execution risk in integrating acquisitions and expanding service lines.

Financial Risks:

• Visibility gaps due to undisclosed cash, investing cash flow, and dividend metrics.
• Potential working capital swings (deferred revenue/advances, payables) affecting OCF.
• Exposure to non-operating income variability that lifted ordinary income above operating income.
• Leverage reliance (liabilities/equity 1.63x) with limited disclosure on interest costs.
• Possible goodwill/intangible impairment risk if acquired assets underperform.

Key Concerns:

• Inconsistency between reported gross profit and the arithmetic of revenue less cost of sales.
• Undisclosed cash balance and investing cash flows, limiting assessment of liquidity buffers and capital intensity.
• Dividend policy and share metrics undisclosed, constraining per-share and payout analysis.

Investment Implications

Key Takeaways:

• Strong YoY growth with operating leverage: revenue +23.2%, operating income +38.0%, net margin 11.25%.
• ROE at 17.46% supported by healthy margins, decent asset turnover (0.570x), and moderate leverage (2.73x).
• OCF/NI of 1.11 indicates solid cash conversion, but lack of investing CF disclosure obscures FCF.
• Liquidity is adequate (current ratio 125.7%, working capital ¥4.036bn); computed equity ratio ~36.7%.
• Non-operating gains boosted ordinary income above operating income; sustainability to be monitored.
• Data gaps (cash, investing CF, dividends, shares) and a gross profit inconsistency require cautious interpretation.

Metrics to Watch:

• Operating margin and EBITDA margin progression versus revenue growth.
• OCF/Net Income ratio and changes in working capital components.
• Investing cash flows (capex, M&A) to clarify FCF and capital intensity.
• Equity ratio and liabilities mix to gauge solvency and interest-bearing debt exposure.
• Composition of non-operating income and effective tax rate normalization.
• Client/IP concentration and churn/ARPU metrics in fan platforms.

Relative Positioning: Within Japan’s mid-cap internet/media and digital content peer set, the company’s 17%+ ROE and ~18–19% EBITDA margin place it in the upper tier on profitability, with moderate leverage and adequate liquidity; however, disclosure gaps and line-item inconsistencies reduce transparency relative to best-in-class peers.

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