PLAID,Inc. FY2025 Q4 Earnings Report

Financial Highlights

• Net Sales: ¥13.40B
• Operating Income: ¥1.43B
• Net Income: ¥1.54B
• EPS: ¥26.99

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

PLAID (4165) delivered a strong FY2025 Q4 (full-year) performance under JGAAP on a consolidated basis, with clear evidence of operating leverage and improved cash generation. Revenue rose 21.9% YoY to ¥13,396m, driven by scalable growth in its software-led model. Gross profit reached ¥7,870m, implying a robust gross margin of 58.7%, which supports high incremental margins as scale builds. Operating income surged to ¥1,431m (+448.8% YoY), lifting the operating margin to roughly 10.7%, a multi‑turn improvement indicative of tight cost control and fixed-cost absorption. Ordinary income of ¥1,380m and net income of ¥1,099m (net margin 8.2%, +242.7% YoY) reflect disciplined execution with minimal financing drag. ROE is calculated at 22.84% via DuPont (NPM 8.20% × asset turnover 1.388 × leverage 2.0), underscoring efficient capital use alongside modest leverage. Operating cash flow of ¥1,376m outpaced net income (OCF/NI 1.25x), signaling good earnings quality and healthy cash conversion. Free cash flow was solid at ¥992m after ¥384m of investing outflows, leaving ample internal funding capacity. Liquidity is strong: current ratio 174.6% and working capital ¥2,667m support ongoing growth investments. Interest coverage stands at 67.9x, indicating limited solvency risk at present leverage levels. The effective tax charge was negative (income tax expense -¥202m), implying a tax benefit that boosted bottom-line results; future normalization could temper net income growth. Balance sheet leverage appears moderate: assets/equity around 2.0x suggests an equity ratio near 50%, despite the reported equity ratio field being unreported (0.0%). Financing cash inflow of ¥865m points to additional capital raised or borrowings, enhancing liquidity for expansion. Dividend remains suspended (DPS ¥0, payout 0%), aligning with a reinvestment phase given strong FCF and growth opportunities. Key data gaps exist (cash balance, share count, equity ratio field), but available metrics consistently indicate improving profitability, cash generation, and capital efficiency. Overall, the company exits FY2025 with stronger unit economics, improving scalability, and balance-sheet flexibility, though sustainability of tax effects and working-capital discipline warrant monitoring.

Profitability Analysis

ROE_decomposition: DuPont ROE 22.84% = Net profit margin 8.20% × Asset turnover 1.388 × Financial leverage 2.00. Implied ROA ~11.4% (8.20% × 1.388), reflecting efficient asset utilization for a software-centric business. margin_quality: Gross margin at 58.7% supports a scalable model with value-added software/services mix. Operating margin ~10.7% (¥1,431m / ¥13,396m) improved sharply YoY, aided by tight opex control; SG&A implied at ~¥6,439m (~48.1% of revenue). Net margin at 8.2% benefited from a tax credit (negative tax expense), which may not be recurring. operating_leverage: Revenue grew 21.9% while operating income jumped 448.8%, indicating strong operating leverage from fixed-cost absorption and improved go-to-market efficiency. D&A is low (¥42.8m), so margin gains mainly reflect opex discipline rather than accounting effects.

Growth Assessment

revenue_sustainability: Top-line growth of 21.9% is consistent with a scaling SaaS-like model; recurring revenue and customer expansion likely underpin growth, though segment detail is not provided. profit_quality: Operating income expansion far outpaced revenue, driven by mix and cost leverage; however, a portion of bottom-line growth stems from a nonrecurring tax benefit, which could normalize. outlook: With high gross margins and strong OCF, PLAID is positioned to continue investing in product and sales capacity. Sustained growth will depend on retention/NRR, client acquisition efficiency, and maintaining pricing power amid competition.

Financial Health

liquidity: Current assets ¥6,243m vs current liabilities ¥3,576m yields a current ratio of 174.6% and ample working capital of ¥2,667m. Quick ratio equals current ratio given inventories are unreported. solvency: Interest coverage 67.9x indicates low short-term refinancing risk. Debt-to-equity 0.85x is moderate, but the precise split of interest-bearing debt vs. other liabilities is not disclosed. capital_structure: Total assets ¥9,648m, equity ¥4,812m imply an equity ratio near ~49.9% (notwithstanding the unreported 0.0% field) and financial leverage ~2.0x, providing balance between flexibility and prudence.

Cash Flow Quality

earnings_quality: OCF/Net Income at 1.25x indicates good cash realization of earnings and limited accrual risk in this period. FCF_analysis: FCF of ¥992m (OCF ¥1,376m minus investing CF ¥384m) demonstrates internal funding capacity for growth without reliance on external financing. working_capital: Positive OCF suggests favorable working-capital dynamics; nonetheless, receivables and contract liabilities detail are absent, so sustainability of working-capital benefits should be monitored.

Dividend Sustainability

payout_ratio_assessment: DPS is ¥0 with a payout ratio of 0%, consistent with reinvestment in growth. Given strong OCF and FCF, the company retains capacity to build cash reserves. FCF_coverage: With no cash dividends, FCF coverage is not a constraint; internally generated cash (¥992m) supports capex and strategic spend. policy_outlook: Management appears focused on scaling; future dividends would likely hinge on sustained profitability, stable OCF/NI, and clarity on growth investment needs.

Risk Assessment

Business Risks:

• Competitive intensity in CX/SaaS platforms impacting pricing and churn
• Customer concentration and enterprise sales cycle elongation
• Execution risk in scaling sales and product roadmaps
• Data privacy and security compliance requirements
• Dependence on talent acquisition and retention in engineering and sales
• Potential macro slowdown curbing marketing/IT spend by clients

Financial Risks:

• Tax normalization headwind after a negative tax expense in FY2025
• Working-capital swings affecting cash conversion as growth accelerates
• Potential increase in interest-bearing debt given positive financing CF
• Limited disclosure on cash balance and debt terms heightening liquidity visibility risk
• Possible dilution risk if equity financing is used for growth or M&A

Key Concerns:

• Sustainability of margin expansion once tax effects normalize
• Visibility into cash and debt balances (cash and equity ratio items unreported)
• Maintaining high gross margins amid competition and product expansion

Investment Implications

Key Takeaways:

• Revenue up 21.9% to ¥13,396m with strong 58.7% gross margin
• Operating margin improved to ~10.7% with operating income +448.8% YoY
• ROE robust at 22.84% on healthy NPM, asset turnover, and moderate leverage
• Cash generation strong: OCF ¥1,376m, FCF ¥992m, OCF/NI 1.25x
• Liquidity solid: current ratio 174.6%, working capital ¥2,667m
• Interest coverage 67.9x indicates low near-term solvency risk
• Negative tax expense boosted net income; normalization likely

Metrics to Watch:

• Net revenue retention (NRR) and churn
• ARR growth and bookings/pipeline
• Operating margin trajectory and SG&A efficiency
• OCF/NI ratio and DSO/DPO trends
• Gross margin sustainability
• Interest-bearing debt levels and financing mix
• Effective tax rate normalization

Relative Positioning: Within domestic growth-oriented software peers, PLAID exhibits above-peer ROE and improving operating margins, supported by strong gross margins and cash conversion; leverage is moderate and liquidity ample, though disclosure gaps (cash, equity ratio field) temper comparability.

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