Ficha Inc. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥95M
• Operating Income: ¥-29M
• Net Income: ¥-8M
• EPS: ¥-5.03

Income Statement

Balance Sheet

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

Verdict: FY2026 Q1 was weak on profitability despite 20.5% revenue growth, with negative margins driving a -4.4% ROE and a flagged ROIC of -26.1%. Revenue reached 0.95 (100M JPY), but operating income was -0.29 and net income also -0.29, implying a net margin of -30.5%. Reported gross profit is -0.74 (gross margin -77.8%), which is arithmetically inconsistent with reported cost of sales (0.47) and revenue (0.95), suggesting either misclassification or a reporting anomaly in the quarter’s cost/gross profit line. SG&A expenses of 0.81 overshadowed the small revenue base, indicating limited operating leverage at current scale. Ordinary income was -0.29 and profit before tax -0.08, implying the presence of unreported extraordinary items (approximately +0.21), with income tax near zero. Cash and deposits stand at 5.48 against total liabilities of just 0.23, yielding a very strong current ratio of 3,091% and working capital of 6.30. Asset turnover remains low at 0.139, characteristic of an early-stage or low-scale revenue profile relative to the asset base. Financial leverage is minimal at 1.03x, so ROE is driven almost entirely by negative profitability rather than gearing. The OCF/Net income ratio is not calculable due to unreported cash flow statements, preventing a direct earnings quality check. Accounts receivable of 0.84 versus quarterly revenue of 0.95 implies DSO around ~80 days, a potential cash conversion drag if sustained. Retained earnings are negative (-0.94), signaling accumulated deficits and limiting near-term dividend capacity. The balance sheet is very liquid and under-levered, mitigating solvency risk despite losses. Forward-looking, the key question is margin normalization (especially resolving the gross profit/cost classification issue) and scaling revenue to absorb SG&A. With a high cash cushion relative to current burn, near-term funding risk appears low, but sustainable profitability requires improved gross margin and cost discipline.

Profitability Analysis

ROE decomposition (DuPont): ROE = Net Profit Margin × Asset Turnover × Financial Leverage = (-30.5%) × 0.139 × 1.03 ≈ -4.4%. The dominant driver of the negative ROE is the deeply negative net margin; asset turnover is low and leverage is negligible. Business reason: revenue scale (0.95) is too small to cover SG&A (0.81), and reported gross profit is negative, implying either unusual cost recognition (e.g., project cost ramp, cost reclassification) or a data anomaly. Sustainability: the current margin profile is not sustainable for profitability; improving gross margin and scaling top line are required. Operating leverage is unfavorable in this quarter (SG&A exceeds gross profit), so incremental revenue must come with materially positive gross margin to improve ROE. Concerning trends: SG&A growth vs revenue growth cannot be precisely assessed due to lack of YoY SG&A, but the absolute SG&A burden (0.81) relative to revenue (0.95) is high, and the reported gross margin (-77.8%) is unusually negative and warrants scrutiny.

Growth Assessment

Revenue grew 20.5% YoY to 0.95, indicating some commercial traction from a low base. However, loss-making economics overshadow growth, with operating margin at -30.5%. The quality of growth is unclear given the gross profit inconsistency; if costs were front-loaded or misclassified, normalized gross margin could be better than reported. Without segment or customer disclosures, sustainability of growth (recurring vs project-based) is uncertain. Near-term outlook hinges on: 1) gross margin normalization, 2) SG&A discipline, and 3) cash conversion (DSO ~80 days). If revenue growth persists and gross margin turns positive, operating leverage could begin to improve; absent that, continued losses are likely.

Financial Health

Liquidity is very strong: cash and deposits 5.48, current assets 6.51 vs current liabilities 0.21, yielding a current ratio of 3091.5% and quick ratio equally high. Solvency is robust: total liabilities 0.23 vs equity 6.59 (D/E ~0.03x). No warning on Current Ratio (<1.0) or D/E (>2.0). Maturity mismatch risk appears low given the cash position far exceeds current liabilities. Interest-bearing debt is unreported, but total liabilities are de minimis, suggesting limited financial obligations. No off-balance sheet obligations are disclosed in the provided data.

Cash Flow Quality

Operating, investing, and financing cash flows are unreported, so OCF/Net income and FCF cannot be assessed. This is a data limitation for earnings quality analysis, especially given the negative net income. Proxy indicators: AR of 0.84 against quarterly revenue of 0.95 implies DSO ~80 days, which could delay cash realization. With cash of 5.48 and quarterly operating loss of ~0.29, a simple proxy runway suggests ample quarters of coverage, but cash burn may differ from accounting loss due to working capital and non-cash items. Without OCF disclosure, we cannot rule out working capital swings or one-off cash movements.

Dividend Sustainability

Dividend data are unreported. Retained earnings are negative (-0.94), indicating accumulated deficits; coupled with negative earnings and unreported FCF, dividend capacity appears limited near term. There is no evidence of dividend payments or policy guidance in the provided data. A sustainable payout would require positive FCF after covering growth investments; visibility is currently low.

Risk Assessment

Business Risks:

• Negative gross margin reported (-77.8%) despite revenue and cost of sales figures that imply a positive gross profit, indicating potential cost recognition issues or reporting anomalies.
• High fixed cost base (SG&A 0.81 vs revenue 0.95) creating unfavorable operating leverage at current scale.
• Customer concentration and project timing risk are plausible for a small revenue base (not disclosed but typical for early-stage entities).
• Execution risk in scaling sales while maintaining or improving gross margins.

Financial Risks:

• Earnings volatility with net margin at -30.5% and ROIC at -26.1%.
• Cash conversion risk indicated by AR of 0.84 versus quarterly revenue of 0.95 (DSO ~80 days).
• Data limitations: lack of OCF/FCF disclosure prevents assessment of earnings-to-cash conversion and FCF coverage.

Key Concerns:

• Quality alert: ROIC -26.1% (<5% benchmark).
• Inconsistencies between gross profit, revenue, and cost of sales; and between ordinary income (-0.29) and profit before tax (-0.08), implying unreported extraordinary items.
• Accumulated deficit (retained earnings -0.94) constrains shareholder returns until profitability improves.

Investment Implications

Key Takeaways:

• Top-line growth (+20.5% YoY) from a low base, but profitability is weak with operating and net margins at -30.5%.
• Balance sheet is very liquid (cash 5.48; current ratio ~31x) and under-levered (D/E ~0.03x), reducing near-term solvency risk.
• ROE (-4.4%) is driven by negative margins; leverage is too low to amplify returns, which is appropriate given early-stage losses.
• Gross profit reporting anomaly is the single biggest factor to resolve for assessing true unit economics.
• Receivables are high relative to quarterly revenue (DSO ~80 days), making cash conversion a watch point.

Metrics to Watch:

• Gross margin (and reconciliation of cost of sales vs reported gross profit).
• SG&A growth versus revenue growth to gauge operating leverage.
• Operating cash flow and free cash flow once disclosed (OCF/NI >1.0 as a quality threshold).
• DSO/AR trends and billing/collection cadence.
• Runway: quarterly cash burn versus cash balance.
• Any extraordinary gains/losses that bridge ordinary income to profit before tax.

Relative Positioning: Within small-cap, early-stage tech/service peers, the company shows better-than-average liquidity and very low leverage, but weaker profitability (negative net and operating margins) and uncertain cash flow quality due to disclosure gaps. Resolution of the gross margin anomaly and evidence of scalable unit economics are needed to improve its relative standing.

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