Open Door Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥1.24B
• Operating Income: ¥-74M
• Net Income: ¥-12M
• EPS: ¥-3.53

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

OpenDoor (3926) reported FY2026 Q2 consolidated results under JGAAP showing modest top-line softness and continued operating losses, offset by a solid equity base and ample working capital. Revenue was ¥1,243m, down 2.0% YoY, indicating a mild deceleration in demand or monetization in its meta-search and travel-related advertising model. Gross profit was ¥782m, implying a robust gross margin of 62.9%, consistent with an asset-light platform model. Despite high gross margins, operating income was a loss of ¥74m (roughly flat YoY), highlighting cost rigidity in SG&A, particularly marketing and personnel. Ordinary loss was ¥71m, only slightly better than operating loss, suggesting limited non-operating income/expenses. Net loss was ¥109m (flat YoY), implying incremental below-the-line items including tax adjustments despite pre-tax losses. EBITDA was negative at ¥61m (EBITDA margin -4.9%), indicating limited operating leverage at current scale. Depreciation and amortization were modest at ¥13m, reinforcing that losses stem from operating expenses rather than heavy non-cash charges. DuPont analysis shows ROE of -2.72% driven by a net margin of -8.77%, asset turnover of 0.271x, and low financial leverage of 1.14x, so return pressure is primarily profitability-related rather than balance-sheet-related. The balance sheet remains conservative: total assets ¥4,582m, liabilities ¥458m, and equity ¥4,011m (debt-to-equity ~0.11x), providing resilience to ongoing losses. Liquidity appears strong with current assets ¥2,761m versus current liabilities ¥415m (current ratio 665%), and working capital of ¥2,346m. Operating cash flow was negative ¥54m, better than net income (-¥109m), indicating partial support from non-cash items and working capital. Investing CF and cash balances are unreported in the XBRL (zeros indicate not disclosed), limiting assessment of true free cash flow and liquidity buffers. The company paid no dividends (DPS ¥0.00), which is appropriate given operating losses and the need to retain cash. Overall, the story is one of high gross margin but insufficient scale/efficiency to cover fixed costs, with a strong balance sheet providing runway to execute on cost control and revenue recovery. Data limitations (notably cash and investing CF unreported; share count unreported) constrain depth of analysis and require caution in interpreting coverage, leverage, and per-share metrics.

Profitability Analysis

ROE_decomposition: Net margin -8.77% × Asset turnover 0.271 × Financial leverage 1.14 = ROE -2.72%. Profitability (negative net margin) is the main drag; asset efficiency is modest for a platform; leverage is low and not a driver. margin_quality: Gross margin of 62.9% (gross profit ¥782m on revenue ¥1,243m) is strong and consistent with an asset-light, advertising/meta-search model. However, operating margin is -6.0% (operating loss ¥74m), indicating SG&A intensity (marketing, sales, personnel) outweighs contribution margin. Ordinary margin (-5.7%) is close to operating, implying minimal reliance on non-operating income. operating_leverage: Revenue declined 2.0% YoY while operating loss was flat, suggesting limited positive operating leverage and some fixed-cost rigidity. EBITDA margin (-4.9%) versus gross margin (62.9%) highlights a large SG&A gap that must compress via scale or cost discipline to approach break-even.

Growth Assessment

revenue_sustainability: Top-line declined to ¥1,243m (-2.0% YoY), pointing to soft traffic/monetization in travel-related demand or pricing (CPC/CPA). Sustainability hinges on recovery in user volumes and advertiser budgets amid competitive pressure in travel meta-search. profit_quality: Negative operating profit despite high gross margin indicates profit quality is constrained by opex scale. D&A (¥13m) is modest, so losses are cash-relevant absent working capital support. outlook: With low leverage and ample working capital, the company has runway to pursue efficiency and product/traffic initiatives. Near-term growth depends on travel activity, partner budgets, and competitive dynamics (global OTAs, search platforms). Without re-acceleration or opex optimization, breakeven may remain elusive.

Financial Health

liquidity: Current assets ¥2,760.7m vs current liabilities ¥414.9m yields a current ratio of 665% and working capital of ¥2,345.8m. Quick ratio is reported equal to current ratio due to unreported inventories. Cash and equivalents are unreported, so actual immediate liquidity buffer cannot be confirmed. solvency: Total liabilities ¥457.5m against equity ¥4,011m results in low leverage (debt-to-equity ~0.11x; assets/equity 1.14x). Interest expense is unreported (shown as 0), and reported interest coverage is not meaningful given operating losses. capital_structure: Balance sheet is equity-heavy with minimal financial leverage, providing flexibility but limiting ROE enhancement via gearing. Equity ratio is unreported in the dataset (shown as 0.0%).

Cash Flow Quality

earnings_quality: OCF of -¥53.5m versus net loss of -¥109m implies an OCF/NI ratio of 0.49, supported by non-cash items (D&A ¥13.3m) and working capital movements. Losses are not purely accrual-driven; cash burn is present but smaller than accounting loss. FCF_analysis: Investing CF is unreported (0), preventing a precise FCF calculation. If capex is modest (consistent with an asset-light model), underlying FCF would likely approximate OCF (-¥53.5m) before any capitalized development or intangible investments. working_capital: With current assets substantially exceeding current liabilities, working capital provides a cushion. However, without cash breakdown and receivables/payables details, the durability of working capital support to OCF cannot be fully assessed.

Dividend Sustainability

payout_ratio_assessment: DPS is ¥0.00 and payout ratio is 0.0% amid a net loss (EPS -¥3.53). A payout is not supported by current earnings. FCF_coverage: FCF coverage is unreported. Given negative OCF and unknown investing CF, dividends would not be covered by free cash flow at present. policy_outlook: Given operating losses and the need to preserve cash, maintaining a no-dividend stance appears consistent until sustained profitability and positive FCF are established.

Risk Assessment

Business Risks:

• Demand cyclicality in travel and advertising markets affecting traffic and monetization
• Competitive intensity from global platforms (OTAs, meta-search, large search engines) impacting pricing and traffic acquisition costs
• Dependence on marketing efficiency (CPC/CPA inflation) and SEO/algorithm changes
• Partner concentration risk with travel suppliers/OTAs and changes in affiliate terms
• FX and macro impacts on outbound/inbound travel behavior
• Technology and cybersecurity risks affecting site reliability and user trust
• Regulatory changes in advertising disclosure, data privacy, and affiliate marketing

Financial Risks:

• Continued operating losses leading to ongoing cash burn
• Limited visibility on cash and investing CF due to unreported items
• Potential need for opex reductions to reach break-even if revenue growth stalls
• Intangible asset impairment risk if traffic or monetization underperform
• Seasonality of travel demand creating quarterly volatility in earnings and cash flow

Key Concerns:

• Negative EBITDA and operating loss despite high gross margin indicate insufficient scale
• Revenue decline (-2.0% YoY) points to near-term demand or monetization headwinds
• Cash and equivalents unreported, constraining liquidity assessment

Investment Implications

Key Takeaways:

• High gross margin (62.9%) validates the asset-light platform economics
• Operating and net losses persist (OI -¥74m; NI -¥109m), with EBITDA margin -4.9%
• Balance sheet is strong (D/E ~0.11x; working capital ¥2.35bn) providing runway
• OCF (-¥53.5m) better than NI, but cash burn continues
• Growth reacceleration or SG&A optimization is required for break-even

Metrics to Watch:

• Quarterly revenue growth and RPM/ARPU (monetization per traffic)
• Operating expense ratio to sales (particularly marketing and personnel)
• EBITDA trajectory toward break-even
• Operating cash flow and disclosure of cash and investing CF
• Traffic/user metrics and partner count/coverage in the travel vertical

Relative Positioning: Within domestic online media/meta-search peers, OpenDoor exhibits strong gross margins and a conservative balance sheet but lags on scale-driven operating leverage; competitive pressure from global platforms suggests monetization and marketing efficiency are critical to narrow losses.

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