Collabos Corporation FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥885M
• Operating Income: ¥58M
• Net Income: ¥56M
• EPS: ¥12.16

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

For FY2026 Q2 (single-entity, JGAAP), 株式会社コラボス reported revenue of ¥885m, down 10.0% YoY, but achieved a sharp improvement in profitability with operating income of ¥58m (+59.7% YoY) and ordinary income equal to operating income, indicating minimal non-operating noise. Net income was ¥56m (-13.0% YoY), with EPS of ¥12.16, suggesting some non-operating or tax-related headwinds despite better operating performance. Gross profit was ¥342.9m, translating to a solid gross margin of 38.7%. Operating margin improved to about 6.6%, and EBITDA reached ¥109.5m, giving a 12.4% EBITDA margin and evidencing disciplined operating expense control. DuPont decomposition yields ROE of 4.23%, driven by a 6.33% net margin, 0.519x asset turnover, and modest financial leverage of 1.29x. The balance sheet is conservative: total assets are ¥1,705m, liabilities ¥444m, and equity ¥1,323m, implying equity accounts for roughly 77.6% of assets and a low debt-to-equity of 0.34x. Liquidity is very strong with current assets of ¥1,513m vs. current liabilities of ¥308m (current ratio 491%), and ample working capital of ¥1,205m. Cash flow quality is sound with operating cash flow (OCF) of ¥64.2m, equating to an OCF/Net Income ratio of 1.15x, signaling earnings backed by cash generation. Financing cash flow was an outflow of ¥88.8m, which could reflect shareholder returns or debt service; details are not disclosed. Investing cash flow and cash & equivalents are shown as zero, which indicates non-disclosure rather than actual zeros; therefore, free cash flow cannot be assessed beyond noting positive OCF. The effective tax rate metric displayed as 0.0% should be treated as a data limitation; the disclosed income tax of ¥34.6m suggests tax cash flows that do not align neatly with the period’s pretax profit under JGAAP timing. Overall, despite top-line contraction, cost discipline and operating leverage delivered stronger operating profit and high interest coverage (21.4x), underpinned by a robust balance sheet. The company did not pay a dividend (DPS ¥0), preserving cash amid a revenue downturn. Near-term focus should be on stabilizing revenue while maintaining margin gains and cash conversion. Given several unreported items (e.g., cash balance, investing CF, per-share equity metrics), conclusions rely on the disclosed non-zero data and derived ratios. The profile is of a small-cap software/solutions business with improving profitability, strong liquidity, and cautious capital structure but with revenue headwinds that merit monitoring.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 6.33%
• asset_turnover: 0.519x
• financial_leverage: 1.29x
• calculated_ROE: 4.23%
• interpretation: ROE is modest, primarily a function of mid-single digit net margin and low leverage; further ROE expansion would need higher margin or better asset turnover rather than added leverage. margin_quality:
• gross_margin: 38.7% (¥342.9m GP on ¥885.0m revenue)
• operating_margin: 6.6% (¥58.0m OI on ¥885.0m revenue)
• EBITDA_margin: 12.4% (¥109.5m EBITDA)
• comments: Gross margin is healthy for a software/solutions model; operating margin expansion YoY despite revenue decline points to disciplined opex and favorable mix. Ordinary income equals operating income, indicating limited non-operating gains/losses. operating_leverage:
• evidence: Revenue -10.0% YoY while operating income +59.7% YoY indicates significant operating leverage from fixed-cost absorption improvements and cost control.
• D&A_context: D&A of ¥51.5m (~5.8% of revenue) suggests moderate capitalized asset base; EBITDA lift relative to EBIT reflects non-cash cost headroom.
• interest_coverage: 21.4x, indicating earnings resiliency vs. financing costs.

Growth Assessment

revenue_sustainability: Top-line contracted 10.0% YoY to ¥885m, implying softer demand, mix shifts, or timing effects in project/recurring revenue. Sustained gross margin strength suggests pricing/mix is not deteriorating materially. profit_quality: Operating profit improved materially on lower opex or a richer margin mix. Net income declined 13.0% YoY, implying non-operating/tax effects offset stronger operations. outlook: Near-term growth hinges on stabilizing bookings/recurring revenue and maintaining cost discipline. With a conservative balance sheet and positive OCF, the company has runway to invest in growth initiatives once demand normalizes. Visibility would improve with KPIs such as ARR, churn, and backlog (not disclosed).

Financial Health

liquidity:

• current_assets: ¥1,513,377,000
• current_liabilities: ¥308,276,000
• current_ratio: 490.9%
• quick_ratio: 490.9% (inventories unreported)
• working_capital: ¥1,205,101,000
• comment: Very strong short-term liquidity; ample buffer to manage volatility in receivables or project timing. solvency:
• total_assets: ¥1,705,000,000
• total_liabilities: ¥444,043,000
• total_equity: ¥1,323,000,000
• equity_ratio_estimate: ≈77.6% (derived: equity/asset), while the reported equity ratio field is unreported (0.0%).
• debt_to_equity: 0.34x
• interest_coverage: 21.4x
• comment: Low leverage and high equity buffer reduce financial risk; interest burden is minimal relative to earnings. capital_structure: Predominantly equity-financed with modest liabilities; room to raise debt if needed without stressing coverage metrics.

Cash Flow Quality

earnings_quality:

• OCF: ¥64,175,000
• net_income: ¥56,000,000
• OCF_to_NI: 1.15x
• assessment: Cash conversion above 1.0x indicates earnings are backed by cash inflows; quality is good for the period. FCF_analysis:
• investing_CF: Unreported (shown as 0)
• free_cash_flow: Not determinable from provided data; positive OCF suggests likely positive FCF if capex was modest.
• comment: Without capex/investing detail, precise FCF cannot be concluded; financing outflow (¥88.8m) was covered by OCF on a standalone basis. working_capital:
• observations: Large working capital base (¥1.205bn). Specific drivers (receivables, payables, deferred revenue) are not disclosed, limiting analysis of timing effects.
• risks: Potential volatility from billing cycles or project milestones; monitor DSO/collections and deferred revenue if disclosed in future.

Dividend Sustainability

payout_ratio_assessment: DPS is ¥0.00 with a 0.0% payout ratio; the company is retaining earnings despite positive net income. FCF_coverage: Not assessable due to unreported investing CF; OCF was positive and could support modest distributions if capex is light. policy_outlook: Given revenue decline and focus on profitability, a conservative stance on shareholder returns is consistent. Future distributions would depend on revenue stabilization and visibility of cash generation.

Risk Assessment

Business Risks:

• Revenue contraction (-10% YoY) indicating demand softness or timing/mix headwinds
• Customer churn or pricing pressure in a competitive contact center/software market
• Project timing and backlog conversion risk affecting quarterly volatility
• Technology obsolescence and the need for continuous product investment
• Cybersecurity/data privacy incidents impacting reputation and cost
• Talent retention and cost inflation in engineering and sales

Financial Risks:

• Small scale with sensitivity to a few large customers or contracts
• Limited disclosure on cash balance and investing cash flows complicates liquidity runway analysis
• Potential working capital swings given large receivables base typical of B2B
• Interest rate changes have limited near-term impact given high coverage but could affect future financing costs
• Concentration risk if cash is held at few institutions (not disclosed)

Key Concerns:

• Top-line decline despite margin gains; sustainability of profitability if revenue pressure persists
• Lack of visibility on cash and capex inhibits full FCF assessment
• Tax and non-operating items causing divergence between operating profit and net profit YoY

Investment Implications

Key Takeaways:

• Revenue fell 10% YoY to ¥885m, but operating income rose 59.7% YoY to ¥58m, evidencing effective cost control.
• Gross margin of 38.7% and EBITDA margin of 12.4% demonstrate improving unit economics.
• ROE at 4.23% is modest; further improvement requires higher margins or better asset turnover rather than leverage.
• Balance sheet is conservative with roughly 77.6% equity-to-assets and low debt (0.34x D/E).
• OCF/N I of 1.15x supports earnings quality; FCF not determinable due to unreported investing CF.
• Liquidity is ample (current ratio ~4.9x), providing flexibility during revenue softness.

Metrics to Watch:

• Revenue growth rate and bookings/ARR (if disclosed)
• Gross and operating margin trajectory
• OCF/Net income conversion and working capital movements (DSO, deferred revenue)
• Capex and investing cash flows to refine FCF view
• Customer concentration and churn metrics
• Cash balance and net cash position
• Tax rate normalization and non-operating items

Relative Positioning: Within Japan small-cap software/solutions peers, the company shows above-average liquidity and a conservative balance sheet, improving operating margins despite revenue headwinds, but currently delivers modest ROE and limited growth visibility due to top-line contraction and disclosure gaps.

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