| Metric | Current Period | Same Period Last Year | YoY |
|---|---|---|---|
| Revenue | ¥15.0B | ¥15.2B | -1.2% |
| Operating Income | ¥1.6B | ¥1.6B | -4.8% |
| Ordinary Income | ¥1.6B | ¥2.0B | -17.8% |
| Net Income | ¥1.2B | ¥1.4B | -16.4% |
| ROE | 3.4% | 4.0% | - |
For FY2026 Q3 year-to-date, Revenue was ¥15.0B (YoY -¥0.2B, -1.2%), Operating Income was ¥1.6B (YoY -¥0.1B, -4.8%), Ordinary Income was ¥1.6B (YoY -¥0.4B, -17.8%), and Net Income was ¥1.2B (YoY -¥0.2B, -16.4%), resulting in lower revenue and profit. The full-year forecast calls for Revenue of ¥22.0B (YoY +6.7%), Operating Income of ¥2.9B (YoY +12.8%), Ordinary Income of ¥3.0B (YoY +3.4%), and Net Income of ¥2.2B (YoY +3.1%), with a recovery planned in Q4.
[Profitability] ROE 3.4% (DuPont three-factor decomposition: Net Profit Margin 8.0% × Total Asset Turnover 0.345x × Financial Leverage 1.22x), Operating Margin 10.4% (Operating Income ¥1.56B / Revenue ¥15.02B), Gross Margin 63.8%. Versus the same period last year, Operating Margin declined by approximately 0.4pt. EBIT margin 10.4%, Effective Tax Rate 26.6%. [Cash Quality] Cash and deposits ¥26.9B (61.7% of total assets), Short-term liability coverage 3.4x (Cash and deposits / Current liabilities ¥7.9B). Working capital ¥24.2B. Accounts payable increased from ¥0.57B to ¥0.73B, +29.3% YoY. [Capital Efficiency] Total Asset Turnover 0.345x, Financial Leverage 1.22x. Intangible fixed assets decreased from ¥0.15B to ¥0.10B, -31.0% YoY. [Financial Soundness] Equity Ratio 81.7% (Equity ¥35.6B / Total Assets ¥43.6B), Current Ratio 405.3% (Current Assets ¥32.1B / Current Liabilities ¥7.9B), Debt-to-Equity ratio 0.22x (Total Liabilities ¥8.0B / Equity ¥35.6B). No interest-bearing debt is disclosed, and financial leverage is at a conservative level.
Cash and deposits increased from ¥25.6B to ¥26.9B, up ¥1.3B YoY, maintaining high liquidity. The cash-to-total-assets ratio is extremely high at 61.7%, and cash coverage of short-term liabilities of ¥7.9B is 3.4x, indicating ample liquidity. Working capital stands at ¥24.2B, slightly up from the same period last year. Accounts payable increased by +¥0.16B (+29.3%), suggesting an extension of payment terms or changes in procurement activities. Intangible fixed assets decreased by -¥0.05B (-31.0%) YoY, indicating progress in restructuring the fixed asset mix through software amortization, etc. The pace of cash accumulation is moderate, and the cash increase of +¥1.3B is broadly consistent with Net Income of ¥1.2B. While ample cash holdings strengthen short-term payment capacity, they also act as a drag on capital efficiency (Total Asset Turnover 0.345x).
Against Ordinary Income of ¥1.64B, Operating Income stands at ¥1.56B, with net non-operating gains limited to about ¥0.08B, indicating dependence on core operating activities. The absolute amount of non-operating income is small, presumed to be mainly financial income such as interest income. The Gross Margin of 63.8% remains high, indicating sound cost control, but SG&A of ¥8.02B (SG&A ratio 53.4%) constrains Operating Income growth. Compared with the same period last year, Operating Income decreased by -4.8%, confirming a structure in which fixed SG&A burdens compress margins when sales slightly decline. Non-operating income and expenses have a limited impact on Net Income, concentrating the earnings structure on core operations. Although disclosures from the statement of cash flows are limited and we cannot directly verify divergences between Operating Cash Flow (OCF) and Net Income, the accumulation of cash (+¥1.3B) is broadly consistent with Net Income of ¥1.2B, suggesting earnings are reasonably underpinned by cash.
[Position within the industry] (Reference information; our research) Profitability: Operating Margin of 10.4% exceeds the industry median of 6.4% (IT & Communications sector 2025 Q3, n=68 companies, our aggregation) by +4.0pt, approaching the upper end of the IQR (13.5%). Net Profit Margin of 8.0% also exceeds the industry median of 4.8% by +3.2pt. ROE 3.4% is -3.9pt below the industry median of 7.3%, above the IQR lower bound (0.9%) but positioned in the lower tier within the industry. Growth: Revenue growth rate of -1.2% is well below the industry median of +12.0% and below the IQR lower bound (+2.0%). Growth deceleration is pronounced relative to peers. Soundness: Equity Ratio of 81.7% exceeds the industry median of 55.2% by +26.5pt, far above the IQR upper bound (67.3%), indicating an extremely conservative capital structure. The Current Ratio of 405.3% is about twice the industry median of 208%, with liquidity exceptionally high relative to peers. The Net Debt/EBITDA multiple is effectively negative (net cash), similar to the industry median of -2.88, indicating a debt-free balance sheet. Overall assessment: Profitability (margins) and financial soundness are top-tier within the industry, but capital efficiency (ROE) and growth are in the lower tier. While ample cash holdings support soundness, insufficient capital efficiency and growth investments suppress returns on shareholder equity.
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not constitute a recommendation to invest in any particular security. The industry benchmarks are reference information aggregated by our company based on public financial data. Investment decisions are your own responsibility; consult a professional as necessary.