AMUSE INC. FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥4.96B
• Net Income: ¥532M
• EPS: ¥200.44

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment 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

For FY2026 Q2 (cumulative), Amuse (4301) delivered a strong earnings rebound on profitability measures despite limited revenue disclosure. Operating income was ¥4.955bn (+154.9% YoY), evidencing significant operating leverage and/or normalization of high-margin activities. Ordinary income reached ¥4.991bn, modestly above operating income, implying small net non-operating gains in the period. Net income came in at ¥3.258bn (+69.9% YoY), translating into a half-year ROE proxy of roughly 8.1% on period-end equity, or about 16% if simply annualized (assumes stable equity and earnings seasonality). EBITDA was ¥5.225bn, with depreciation and amortization relatively light at ¥270m, highlighting an asset-light earnings base consistent with talent/entertainment models. Operating cash flow was ¥3.709bn, exceeding net income (OCF/NI = 1.14), which supports the quality of earnings. Liquidity is solid: current assets of ¥47.953bn vs. current liabilities of ¥22.116bn yield a current ratio of 216.8% and quick ratio of 211.5%. The capital structure is conservative with total liabilities of ¥23.72bn and total equity of ¥40.042bn, implying an equity-to-asset ratio around 60% (Equity/Assets ≈ 60.3%), despite the reported equity ratio field showing 0.0% (undisclosed). Total assets are ¥66.35bn. Note: liabilities plus equity do not exactly reconcile to assets in the provided snapshot, which may reflect rounding, classification differences, or omitted line items (e.g., noncontrolling interests); zeros also indicate undisclosed items, not actual zeros. Financing cash flow was ¥-504m, potentially reflecting shareholder returns or debt reduction, but details are not disclosed. Revenue and gross profit were not reported in this dataset (displayed as 0), so margin metrics reliant on sales are not assessable. Interest expense was reported as 0 (likely undisclosed); the company appears to have minimal financing burden given the strong balance sheet. The effective tax rate cannot be inferred reliably because pretax profit is not disclosed, although net income is robust. Overall, the profile suggests improved profitability, healthy cash generation, and ample liquidity, with the main analytical limitations stemming from missing revenue and cash composition disclosures. The outlook hinges on the sustainability of operating income drivers (live events pipeline, management commissions, IP/royalty income) and whether non-recurring factors contributed to the surge.

Profitability Analysis

ROE decomposition is constrained by the absence of revenue and average balance data; however, a half-year ROE proxy is ~8.1% (Net income ¥3.258bn / period-end equity ¥40.042bn), annualizing to ~16.3% if earnings are steady. Net profit margin and asset turnover in the provided DuPont are shown as 0%/0x due to undisclosed revenue and should be disregarded. Operating leverage appears high: operating income rose +154.9% YoY, outpacing net income (+69.9% YoY), suggesting either strong revenue mix/volume recovery or fixed-cost absorption. Margin quality looks favorable: EBITDA of ¥5.225bn vs. D&A of ¥270m indicates a largely non-capital-intensive cost base; ordinary income (¥4.991bn) modestly exceeding operating income implies limited reliance on non-operating gains. Interest burden is immaterial in this dataset (interest expense undisclosed). Without sales and gross profit, we cannot compute gross or operating margins, but the scale of operating income implies substantial profitability improvement from the prior year’s base.

Growth Assessment

Top-line sustainability cannot be assessed from this dataset because revenue was undisclosed. Nevertheless, the +154.9% YoY increase in operating income signals strong recovery momentum, likely tied to live events, artist management activity, and ancillary rights income. The +69.9% YoY increase in net income, while robust, lagged operating income growth, potentially reflecting normalization in non-operating items or higher tax/other below-OP movements. Profit quality appears solid given OCF exceeded net income (1.14x), implying earnings are supported by cash conversion rather than accounting accruals. The EBITDA uplift relative to modest D&A points to growth driven by operating performance, not accounting effects. Outlook hinges on the event calendar, artist lineup monetization, and stability of high-margin businesses (royalties, endorsements, digital content). If H2 seasonality is favorable, the annualized earnings pace could exceed FY2025 levels, but the absence of revenue disclosure and pretax detail constrains precision. Monitoring the sustainability of ordinary income above operating income is also important; the gap is small but indicates some contribution from non-operating gains.

Financial Health

Liquidity is strong: current assets ¥47.953bn vs. current liabilities ¥22.116bn yield a current ratio of 216.8% and quick ratio of 211.5%, supported by relatively low inventories of ¥1.172bn. Working capital stands at ¥25.837bn, providing ample buffer for event prepayments and production costs. Solvency appears solid: total liabilities ¥23.72bn against equity ¥40.042bn produce a debt-to-equity of ~0.59x (using total liabilities as a proxy for debt), and implied equity-to-asset ratio is about 60.3% (¥40.042bn / ¥66.35bn), despite the reported equity ratio field showing 0.0% (undisclosed). Interest expense is undisclosed/immaterial in this snapshot, suggesting limited financial risk from leverage. Note that assets, liabilities, and equity do not perfectly reconcile in the provided data; we treat this as a disclosure limitation rather than a balance sheet stress signal.

Cash Flow Quality

Operating cash flow of ¥3.709bn exceeds net income of ¥3.258bn (OCF/NI = 1.14), indicating healthy earnings quality with positive working capital contribution or non-cash charges beyond D&A. D&A is ¥270m, implying most of the EBITDA-to-OCF bridge arises from working capital timing and other non-cash items; this is typical for entertainment businesses with advances and deferred revenues. Investing cash flow is shown as 0 (undisclosed), preventing precise free cash flow computation; the displayed FCF of 0 should not be interpreted as actual. Financing cash flow of ¥-504m suggests outflows (dividends, buybacks, or debt repayments), but line item detail is not available. Cash and equivalents are not disclosed in this dataset (shown as 0), so we cannot verify liquidity against cash-on-hand; however, strong current assets imply adequate liquid resources. Overall, cash conversion looks solid, but full assessment awaits disclosure of capex/intangible investments and cash balances.

Dividend Sustainability

Annual DPS and payout ratio are undisclosed (shown as 0). With net income of ¥3.258bn and positive OCF of ¥3.709bn, internal capacity to fund dividends appears sound on fundamentals. Financing cash outflows of ¥-504m may include shareholder returns, but we cannot confirm. FCF coverage of dividends cannot be evaluated because investing cash flows and capex/intangibles are not disclosed; therefore, any FCF coverage ratio presented as 0 should be disregarded. Policy continuity will depend on earnings durability into H2, event pipeline visibility, and capital needs for content/talent investment. Given the strong balance sheet and liquidity, the company has flexibility to sustain or adjust distributions, subject to board policy and performance.

Risk Assessment

Business Risks:

• Event-driven revenue volatility (concerts, tours, festivals) and potential cancellations/postponements
• Talent concentration risk and contract renegotiation churn
• Content/IP pipeline risk affecting royalties and merchandising income
• Macro sensitivity (consumer spending, advertising, sponsorship)
• Regulatory and compliance risks in entertainment management
• FX exposure from overseas activities and royalties
• Reputation/brand risks tied to artists and public relations incidents

Financial Risks:

• Working capital swings from advances, deferred revenues, and production settlements
• Potential mismatch between revenue recognition and cash timing
• Limited visibility on capex/intangible investment needs due to undisclosed investing CF
• Data disclosure gaps (revenue, cash) hinder precise margin and leverage analysis
• Concentration of non-operating income sources, if any, though small this period

Key Concerns:

• Revenue and margin profiles not disclosed, limiting assessment of structural vs. cyclical earnings
• Balance sheet subtotals do not fully reconcile in the snapshot, reducing analytical precision
• Dividend policy and FCF coverage not assessable without investing cash flow detail

Investment Implications

Key Takeaways:

• Strong profitability rebound with operating income ¥4.955bn (+154.9% YoY) and net income ¥3.258bn (+69.9% YoY)
• High cash conversion (OCF/NI = 1.14) supports earnings quality
• Robust liquidity (current ratio 216.8%, quick ratio 211.5%) and modest leverage (liabilities/equity ~0.59x)
• EBITDA ¥5.225bn vs. D&A ¥270m underscores asset-light model
• Non-operating contribution modest (ordinary income slightly > operating income)
• Key data items undisclosed (revenue, cash, investing CF), constraining margin and FCF analysis

Metrics to Watch:

• Revenue disclosure by segment and YoY growth trajectory
• H2 event pipeline and booking rates to gauge sustainability of OP
• Ordinary income components (interest, equity-method, other) versus operating income
• Working capital movements (advances, deferred revenue, receivables turnover) and OCF conversion
• Capex/intangible additions and investing cash flows to derive true FCF
• Equity ratio (net assets/total assets) and reconciliation of balance sheet totals
• Dividend announcements and payout policy updates

Relative Positioning: Within Japanese entertainment/talent management peers, Amuse appears to be in a recovery phase with stronger-than-average profitability momentum and a conservative balance sheet, offering resilience versus more leveraged or capex-heavy peers; however, limited disclosure of revenue and cash/investing flows currently tempers comparability and visibility.

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