SpiderPlus & Co. FY2025 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥3.60B
• Operating Income: ¥-58M
• Net Income: ¥-469M
• EPS: ¥-2.64

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

SpiderPlus Co., Ltd. (TSE: 41920) reported FY2025 Q3 consolidated results under JGAAP showing solid top-line expansion but continued operating losses. Revenue rose 21.3% YoY to ¥3,597 million, indicating resilient demand and successful customer acquisition or upselling. Reported gross profit was ¥1,981 million, corresponding to a gross margin of 55.1%, which is healthy for a software/service-centric model and suggests pricing power and scale efficiencies on direct costs. Despite the gross margin, operating income was a loss of ¥58 million, essentially flat YoY per the disclosure, implying that opex growth largely offset revenue gains. Ordinary income was a loss of ¥85 million, reflecting financing and other non-operating costs, including interest expense of ¥7.7 million. Net loss was ¥93 million (EPS: -¥2.64), translating to a net margin of -2.59%, modestly negative given the growth phase profile. DuPont decomposition yields ROE of -3.62%, driven by a small negative margin (-2.59%), asset turnover of 0.881x, and financial leverage of 1.59x. Liquidity appears strong with current assets of ¥3,396 million and current liabilities of ¥1,218 million, resulting in a current ratio of 278.9% and ample working capital of ¥2,178 million. The balance sheet shows total assets of ¥4,083 million and equity of ¥2,569 million, indicating a conservative capital structure relative to scale. Interest coverage is negative (-7.5x) given operating losses, though absolute interest burden (¥7.7 million) is small. No dividends were declared (DPS ¥0), which is consistent with the company’s current investment phase and negative net income. Cash flow statement items were not disclosed in the provided XBRL for this period, limiting assessment of cash conversion and free cash flow. Some line-item inconsistencies exist between reported gross profit and cost of sales, suggesting possible classification differences; we rely on the reported gross profit and margin. Overall, the company demonstrates good revenue momentum and strong gross margin, but needs to accelerate operating leverage to achieve sustained profitability. The strong liquidity position provides runway to execute, while modest leverage tempers financial risk. Key watchpoints include expense discipline, churn/retention, and trajectory toward breakeven as scale builds.

Profitability Analysis

ROE of -3.62% is explained by: net profit margin -2.59%, asset turnover 0.881x, and financial leverage 1.59x. The negative margin is the principal driver of negative ROE, while turnover and leverage are within typical ranges for a growing software/services business. Gross margin at 55.1% indicates healthy unit economics, but operating margin remains negative (operating loss of ¥58 million), pointing to elevated SG&A and R&D relative to revenue base. Interest expense is modest (¥7.7 million), so below-the-line items are not the main cause of losses. The reported interest coverage of -7.5x reflects the operating loss rather than excessive interest burden. There is a data inconsistency between cost of sales (¥984 million) and gross profit (¥1,981 million) versus revenue (¥3,597 million); we defer to the reported gross profit and margin to assess unit profitability. Operating leverage: with revenue up 21.3% YoY and operating loss flat, incremental gross profit appears to have been largely reinvested in growth spending, suggesting operating leverage has not yet been realized. If gross margin remains ~55% and opex growth decelerates, breakeven is achievable with continued top-line growth. EBITDA is undisclosed in substance (D&A not reported), so EBITDA-level analysis is not informative this quarter.

Growth Assessment

Revenue growth of 21.3% YoY to ¥3,597 million indicates strong demand and/or expanding customer adoption. The sustainability of this growth will depend on retention, net expansion, and new logo acquisition; while not disclosed, the gross margin profile is consistent with a recurring-revenue model. Profit quality is mixed: while gross profitability is robust, net losses persist, implying that growth is still investment-heavy. Ordinary loss widened relative to operating loss due to small non-operating costs (interest and others), but these are not the main growth constraint. With asset turnover at 0.881x, capital intensity appears manageable and supports scalable growth. Near-term outlook hinges on expense discipline; if sales and marketing productivity improves, incremental margins should expand. Given missing cohort/ARR metrics in the provided data, we assume revenue growth continues at a mid-teens to low-20s pace near term, with the path to operating breakeven reliant on cost control. Absence of reported D&A suggests low reported non-cash charges; true underlying cash margin cannot be inferred without OCF. Overall growth trajectory is favorable, but conversion to profitability remains the key inflection to watch.

Financial Health

Liquidity is strong: current assets ¥3,395,612 thousand vs current liabilities ¥1,217,548 thousand, yielding a current ratio of 278.9% and working capital of ¥2,178,064 thousand. Quick ratio equals current ratio due to zero reported inventories, indicating adequate near-cash resources relative to short-term obligations. Total assets are ¥4,083,000 thousand and total liabilities ¥1,565,691 thousand, implying equity of ¥2,569,000 thousand and modest leverage (assets/equity 1.59x). The provided debt-to-equity ratio is 0.61x; however, the composition of liabilities (interest-bearing debt vs. payables/contract liabilities) is not disclosed, so solvency risk cannot be fully assessed. Interest expense is low (¥7,688 thousand), suggesting limited reliance on debt financing at present. Equity ratio was shown as 0.0% in the feed but appears non-reported; using the balance sheet figures implies an equity ratio around 63% (2,569/4,083), indicating a solid capital base. Overall solvency appears sound given the equity cushion and limited interest burden.

Cash Flow Quality

Operating, investing, and financing cash flows were not reported in this dataset, so OCF/NI, FCF, and cash conversion cannot be evaluated. The displayed cash and equivalents of 0 is also an unreported item; therefore, liquidity quality from a cash perspective cannot be determined from this release. Earnings quality indicators such as accrual intensity, working capital consumption, and CAPEX are unavailable. Depreciation and amortization are unreported, so the degree of non-cash components in earnings is unclear. Given the strong reported gross margin and small interest expense, underlying cash generation could improve quickly if operating losses narrow, but this cannot be confirmed without OCF and CAPEX data.

Dividend Sustainability

The company paid no dividend (DPS ¥0) with a payout ratio of 0%, which aligns with ongoing net losses (¥93 million). Without reported operating and free cash flow, FCF coverage of dividends cannot be assessed, but with no dividend this is presently moot. Given the growth investment phase and negative net income, a continued no-dividend policy appears likely near term until sustainable profitability and positive FCF are established. Any potential future shareholder return policy would depend on visibility into durable profits and cash generation once scale efficiencies are realized.

Risk Assessment

Business Risks:

• Execution risk in achieving operating leverage despite strong revenue growth
• Customer retention and net expansion uncertainty not disclosed in the dataset
• Competitive intensity in software/services potentially pressuring pricing and CAC
• Dependence on specific verticals/end-markets could expose growth to sector cycles
• Potential mismatch between reported cost classifications (COGS vs. opex) complicating margin analysis

Financial Risks:

• Sustained operating losses result in negative interest coverage (-7.5x)
• Limited visibility into cash flows and cash balance due to unreported CF statements
• Potential need for external financing if losses persist and cash burn is high (unknown from data)
• Leverage characterization unclear as debt composition is not disclosed

Key Concerns:

• Path to breakeven given operating loss of ¥58 million despite 21.3% revenue growth
• Reliability of gross margin assessment given inconsistency between COGS and gross profit lines
• Lack of OCF/FCF data impedes assessment of cash runway and investment intensity

Investment Implications

Key Takeaways:

• Top-line growth strong at +21.3% YoY to ¥3.6bn with a healthy reported gross margin of 55.1%
• Operating loss remains modest (¥58m) and flat YoY, indicating reinvestment offsetting growth
• ROE is slightly negative (-3.62%) primarily due to a small net loss and moderate leverage
• Liquidity is robust with a current ratio of 2.79x and working capital of ¥2.18bn
• Interest burden is low (¥7.7m), suggesting flexibility to pursue growth
• Cash flow and cash balance not disclosed; runway assessment requires additional data

Metrics to Watch:

• Operating expense growth vs. revenue growth (sales and marketing efficiency, R&D leverage)
• Operating margin trajectory and time to breakeven
• Retention/NRR and cohort expansion metrics (if disclosed in future reports)
• Cash and equivalents, operating cash flow, and CAPEX to gauge runway and FCF path
• Gross margin stability and any reclassification of cost of sales
• Interest-bearing debt levels and financing activities

Relative Positioning: Relative to small/mid-cap Japanese SaaS and software-enabled service peers, SpiderPlus exhibits competitive top-line growth and a solid gross margin, offset by continued but modest operating losses; its balance sheet liquidity appears stronger than average, while transparency on cash flows is currently below peers that routinely disclose OCF/FCF.

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