CYBERLINKS CO.,LTD. FY2025 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥13.11B
• Operating Income: ¥1.33B
• Net Income: ¥445M
• EPS: ¥80.42

Income Statement

Balance Sheet

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

Cyberlinks Co., Ltd. (3683) delivered a strong FY2025 Q3 consolidated performance under JGAAP, with clear profitability improvements and healthy balance sheet metrics, while several cash flow and per-share data points were not disclosed in XBRL. Revenue reached ¥13,113 million, up 14.4% year over year, indicating solid top-line momentum. Operating income surged 81.6% to ¥1,334 million, underscoring meaningful operating leverage and cost discipline. Net income rose 101.0% to ¥895 million, outpacing revenue growth and signaling margin expansion through the P&L. The operating margin improved to approximately 10.2% (¥1,334m / ¥13,113m), compared with single digits likely in the prior period given the 81.6% YoY gain. Gross profit of ¥3,452 million translates to a 26.3% gross margin, which, together with restrained SG&A growth, likely drove the step-up in operating profitability. Ordinary income equals operating income (both ¥1,334 million), implying limited net non-operating drag; the disclosed interest expense of ¥14 million appears to be offset by non-operating income. Based on ordinary income (as a proxy for pre-tax), income tax of ¥264 million implies an effective tax rate of approximately 19.8%, consistent with a normalized domestic rate rather than the 0.0% shown in the calculated metrics. The DuPont profile is balanced: net margin 6.83%, asset turnover 0.875x, and financial leverage 1.72x produce an ROE of 10.25%. The balance sheet is robust: total assets are ¥14,988 million against total equity of ¥8,729 million, implying an equity ratio near 58% (computed) despite the reported 0.0% placeholder. Liquidity is solid with a current ratio of 190.2% and working capital of ¥3,161 million, suggesting comfortable near-term funding capacity. Leverage is modest with total liabilities/equity of 0.62x, supporting solvency. Cash flow figures (OCF/ICF/FCF) were not disclosed in XBRL, so free cash flow quality cannot be assessed from this dataset. Dividend data show DPS and payout ratio as 0.00, which should be treated as undisclosed rather than an actual zero; policy insight therefore remains limited from this release. Overall, the quarter demonstrates improving earnings power and efficient asset use with conservative leverage, but the absence of cash flow disclosures and per-share base data (shares outstanding, BVPS) constrains a full assessment of earnings quality, dividend capacity, and capital allocation.

Profitability Analysis

roe_decomposition: ROE 10.25% via DuPont: Net margin 6.83% × Asset turnover 0.875 × Financial leverage 1.72. This indicates ROE is driven by both healthy margin uplift and reasonable asset utilization, with only moderate balance sheet leverage. margin_quality: Gross margin at 26.3% (¥3,452m/¥13,113m) and operating margin at ~10.2% (¥1,334m/¥13,113m) reflect improved cost structure and/or favorable mix. Ordinary income equals operating income, suggesting non-operating items net to roughly zero; interest expense of ¥14m appears offset by non-operating gains. Tax expense of ¥264m on pre-tax ~¥1,334m implies an effective tax rate near 19.8%, consistent with normalized taxation. operating_leverage: Revenue grew 14.4% YoY while operating income rose 81.6% YoY, evidencing strong operating leverage from gross margin resilience and SG&A efficiency. The step-up in operating margin versus the prior year (implied) supports scalability in the cost base as volumes increase.

Growth Assessment

revenue_sustainability: Top-line growth of 14.4% YoY to ¥13,113m suggests healthy demand across core offerings. Sustainability will hinge on retention, upsell, and recurring revenue mix (not disclosed) and on pipeline conversion in key customer segments. profit_quality: Profit expansion outpaced revenue, indicating structurally improving margins. Ordinary income tracking operating income indicates minimal non-operating distortion. However, absent depreciation and cash flow disclosures, the split between cash and non-cash drivers cannot be verified. outlook: With an ROE of 10.25%, net margin of 6.83%, and moderate leverage, the company appears positioned to continue profitable growth if demand conditions persist. Key swing factors include maintaining gross margin, controlling SG&A amid growth investments, and sustaining asset turnover (~0.875x).

Financial Health

liquidity: Current assets ¥6,665m vs current liabilities ¥3,504m imply a current ratio of 190.2% and working capital of ¥3,161m, indicating solid short-term liquidity. Quick ratio is shown as 190.2% but inventories were undisclosed (0 placeholder), so true quick liquidity may be lower if inventories exist. solvency: Total liabilities ¥5,411m vs equity ¥8,729m yield liabilities/equity of 0.62x and an equity ratio of roughly 58% (computed as ¥8,729m/¥14,988m). Interest coverage is very strong at ~95.3x (¥1,334m/¥14m), indicating ample capacity to service debt. capital_structure: Financial leverage of 1.72x (assets/equity) is moderate. The structure supports resilience and optionality for investment without pressuring covenants or coverage metrics.

Cash Flow Quality

earnings_quality: Cash flow statements (OCF/ICF/FCF) were not disclosed; OCF/Net Income ratio of 0.00 in the calculated metrics reflects missing data, not actual cash generation. Accordingly, accrual intensity, working capital cash conversion, and cash earnings quality cannot be assessed from this dataset. fcf_analysis: Free cash flow is undisclosed. Without depreciation/amortization and capex data, we cannot reconcile EBITDA or FCF. The strong operating profit suggests potential for positive OCF barring significant working capital absorption or elevated capex. working_capital: Balance sheet indicates positive working capital of ¥3,161m; however, the lack of breakdown (receivables, payables, inventories undisclosed) limits insight into cash conversion cycle dynamics.

Dividend Sustainability

payout_ratio_assessment: DPS and payout ratio are shown as 0.00, which should be treated as undisclosed rather than actual values. With EPS at ¥80.42 and net income of ¥895m, capacity for dividends exists in principle, but actual policy cannot be inferred here. fcf_coverage: FCF coverage cannot be evaluated due to missing OCF and capex. Any assessment of dividend cover by free cash flow is therefore indeterminate from this release. policy_outlook: Given a computed equity ratio of ~58% and modest leverage (0.62x liabilities/equity), the balance sheet could support distributions, but management’s dividend policy, target payout, and capital allocation priorities were not provided.

Risk Assessment

Business Risks:

• Revenue growth concentration risk in core customer segments or verticals (mix not disclosed).
• Potential gross margin pressure from pricing competition or input cost inflation.
• Execution risk in scaling operations while maintaining SG&A efficiency (key to recent operating leverage).
• Dependence on recurring vs. project-based revenue mix (not disclosed), impacting visibility.
• Technology and service delivery risks typical of IT/cloud solution providers (uptime, security, product relevance).

Financial Risks:

• Limited visibility on cash generation and capex due to undisclosed cash flow statements.
• Potential working capital swings not observable without receivables/payables/inventory detail.
• Interest rate and refinancing risk appears low given 95.3x coverage, but absolute debt terms are undisclosed.
• Tax rate variability (calculated ~19.8%) could affect net profitability.

Key Concerns:

• Lack of cash flow data obscures earnings quality and FCF sustainability.
• Inventories and other current asset components not disclosed, limiting liquidity granularity.
• Dividend policy and actual DPS not observable, constraining income-oriented analysis.

Investment Implications

Key Takeaways:

• Robust profitability: operating income up 81.6% YoY with operating margin ~10.2%.
• Balanced ROE of 10.25% driven by 6.83% net margin, 0.875x asset turnover, and modest leverage (1.72x).
• Strong liquidity (current ratio 190.2%) and conservative capital structure (liabilities/equity 0.62x).
• Ordinary income aligns with operating income, indicating minimal non-operating distortion.
• Data gaps in cash flow and per-share base limit conclusions on FCF and shareholder returns.

Metrics to Watch:

• OCF and FCF (cash conversion vs. net income; capex intensity).
• Gross and operating margins to confirm persistence of operating leverage.
• Revenue growth cadence and composition (recurring vs. non-recurring).
• Working capital turns (DSO/DPO/DIO) once disclosed.
• Tax rate stability relative to the ~19.8% inferred in this period.

Relative Positioning: Within Japan-listed IT/cloud solution peers, the company exhibits above-average operating leverage realization this period, solid ROE with moderate leverage, and strong coverage metrics; however, disclosure gaps on cash flows and detailed working capital reduce comparability on cash-based quality and capital return capacity.

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