Japan PropTech Co.,Ltd. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥1.22B
• Operating Income: ¥92M
• Net Income: ¥75M
• EPS: ¥5.40

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

日本情報クリエイト株式会社 (40540) reported FY2026 Q1 standalone results under JGAAP with solid topline and profit growth. Revenue rose 14.3% YoY to ¥1,219m, supported by strong gross profit of ¥812m and a high gross margin of 66.6%, indicative of a software-like, high-value-added revenue mix. Operating income increased 19.5% YoY to ¥92m, with an operating margin of 7.5%, suggesting modest operating leverage from the revenue increase. Ordinary income reached ¥108m, outpacing operating income due to positive non-operating balance and negligible interest expense (¥8k), while net income was ¥75m (+16.2% YoY), implying a net margin of 6.15%. DuPont decomposition yields a ROE of 1.94% (Net margin 6.15% × Asset turnover 0.220 × Financial leverage 1.44), reflecting moderate profitability on a low-leverage balance sheet; however, this is based on a single quarter and not annualized. Liquidity is adequate with a current ratio of 112.3% and working capital of ¥189m, though the buffer is not large and may be sensitive to collection cycles. Financial leverage appears conservative (assets/equity 1.44x, reported debt-to-equity 0.47x), and interest burden is de minimis (interest coverage ~11,500x). Balance sheet totals show a discrepancy (liabilities + equity exceed assets by ~¥134m), which may reflect rounding, timing, or classification differences in the provided snapshot. Cash flow statements are undisclosed (OCF/ICF/FCF reported as zero), limiting assessment of earnings-to-cash conversion and capital intensity. No dividend data were disclosed for the quarter (DPS and payout ratio shown as zero are treated as unreported), so dividend capacity cannot be validated from cash flows. The company’s strong gross margin supports the view of resilient unit economics, while operating margin indicates ongoing investment or fixed cost absorption typical for a platform/software business. The quarter’s growth in operating and net income relative to revenue suggests incremental operating leverage, although the margin level leaves room for further efficiency gains. With many items undisclosed (depreciation, taxes, cash, shares outstanding), conclusions must be interpreted cautiously. Overall, fundamentals indicate healthy growth and profitability with conservative leverage, but the lack of cash flow disclosure and modest liquidity buffer warrant monitoring.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 6.15%
• asset_turnover: 0.220x
• financial_leverage: 1.44x
• calculated_ROE: 1.94% (single-quarter basis, not annualized) margin_quality:
• gross_margin: 66.6% (¥812.2m/¥1,219m) indicates high-value, software-like revenue mix
• operating_margin: 7.5% (¥92m/¥1,219m) reflecting positive operating leverage but continued investment/fixed cost load
• ordinary_margin: 8.9% (¥108m/¥1,219m) aided by net non-operating income
• net_margin: 6.15%, consistent with YoY profit growth operating_leverage: Revenue +14.3% YoY vs operating income +19.5% YoY implies positive operating leverage in the quarter; further scale could expand operating margin if gross margin holds and SG&A is contained.

Growth Assessment

revenue_sustainability: Topline growth of 14.3% YoY suggests healthy demand; high gross margin supports pricing power and favorable mix. profit_quality: Operating income grew faster than revenue, signaling improved cost absorption; ordinary income exceeded operating income, but this includes non-operating items, so core profit quality should be judged primarily on operating margin. outlook: If revenue momentum continues and cost discipline persists, incremental margin expansion is plausible. However, assessment is constrained by lack of depreciation, tax, and cash flow disclosures, and single-quarter seasonality could influence results.

Financial Health

liquidity:

• current_ratio: 112.3%
• quick_ratio: 112.3% (inventories undisclosed)
• working_capital: ¥189.4m
• commentary: Adequate near-term liquidity, but buffer is modest; cash balance undisclosed prevents deeper assessment of immediate liquidity. solvency:
• debt_to_equity: 0.47x (basis undisclosed; likely includes interest-bearing debt and/or total liabilities per provided metric)
• interest_coverage: ~11,500x (¥92m OI / ¥0.008m interest expense), effectively no interest burden
• financial_leverage: 1.44x assets/equity; conservative capital structure capital_structure: Equity base ¥3,863m on assets ¥5,548m; noted discrepancy with liabilities + equity exceeding assets by ~¥134m suggests data mapping/rounding issues in the snapshot rather than true imbalance.

Cash Flow Quality

earnings_quality: Unable to validate cash conversion as operating cash flow is undisclosed (reported as zero by convention). Net-to-ordinary income bridge suggests some below-the-line impacts, but taxes and non-cash items (depreciation/amortization) are undisclosed. FCF_analysis: Free cash flow cannot be computed given missing OCF and capex data; EBITDA is undisclosed and shown as zero by convention. working_capital: Positive working capital of ¥189m supports operations, but without AR/AP details, timing of collections/payments cannot be assessed. Monitor DSO/DPO trends once disclosed.

Dividend Sustainability

payout_ratio_assessment: Payout ratio is undisclosed (shown as zero by convention). With net income of ¥75m in Q1, earnings capacity exists, but sustainability must be judged against full-year profits and cash flows. FCF_coverage: Not assessable due to undisclosed OCF/FCF. Cash balance is also undisclosed. policy_outlook: No dividend policy signals in the data. Assessment should await management guidance and cash flow disclosure.

Risk Assessment

Business Risks:

• Revenue concentration in software/IT services can be sensitive to client real estate transaction activity and macro conditions
• Potential seasonality in quarterly sales and invoicing patterns
• Competitive pressure in PropTech/real estate systems could affect pricing and retention
• Dependence on continued product innovation and support to sustain high gross margins

Financial Risks:

• Modest liquidity buffer (current ratio ~1.12x) with undisclosed cash balance
• Limited visibility on cash generation and capex due to undisclosed cash flow statements
• Accounting presentation variances (e.g., undisclosed depreciation/taxes) complicate comparability and margin normalization

Key Concerns:

• Lack of operating, investing, and financing cash flow disclosure in the quarter
• Undisclosed depreciation/amortization and tax expense, obscuring true operating profitability
• Balance sheet aggregation discrepancy (~¥134m) between assets and liabilities + equity in the provided data

Investment Implications

Key Takeaways:

• Double-digit revenue growth (+14.3% YoY) with strong gross margin (66.6%)
• Operating income growth outpaced revenue, indicating positive operating leverage
• Conservative leverage (assets/equity 1.44x) and negligible interest burden
• Liquidity adequate but not abundant (current ratio ~1.12x; cash undisclosed)
• Cash flow quality and capex needs cannot be assessed this quarter due to missing disclosures

Metrics to Watch:

• OCF, capex, and FCF once disclosed to validate earnings quality
• SG&A ratio and operating margin trajectory for further operating leverage
• Deferred revenue, AR, and cash balance to gauge subscription mix and collection
• Retention/ARR indicators and new bookings (if disclosed) to assess sustainability of growth
• Tax expense normalization and any non-operating gains/losses impacting ordinary income

Relative Positioning: Based on available data, the company exhibits software-like unit economics with an above-average gross margin and a mid-single-digit operating margin, positioning it favorably on profitability versus many traditional IT services peers while leaving room for efficiency gains compared to mature SaaS leaders; leverage is conservative relative to domestic peers.

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