BeMap,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥651M
• Operating Income: ¥-205M
• Net Income: ¥-212M
• EPS: ¥-63.09

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

Bemap Co., Ltd. (43160) reported FY2026 Q2 consolidated results under JGAAP showing solid top-line expansion but continued operating losses. Revenue was ¥651 million, up 25.3% YoY, indicating improved demand or execution on projects, yet profitability deteriorated at the operating and net levels. Gross profit was ¥223 million, implying a gross margin of 34.3%, which is respectable for a solutions/services-oriented business but not sufficient to cover fixed costs at current scale. Operating income was a loss of ¥205 million, broadly unchanged YoY, signaling limited operating leverage despite strong revenue growth. Ordinary loss was ¥204 million, suggesting limited non-operating impacts, and net loss was ¥219 million with EPS of -¥63.09. The DuPont bridge shows ROE at -57.18%, driven by a deeply negative net margin (-33.64%) and near-1.0x asset turnover, with moderate financial leverage (~1.70x). EBITDA was -¥204 million and the EBITDA margin -31.4%, pointing to a cost structure that remains heavy relative to revenue. Cash flow from operations was a negative ¥25 million, notably less negative than net income, which hints at non-cash charges and/or favorable working capital movements; however, free cash flow cannot be reliably assessed given unreported investing outflows. Liquidity metrics are strong on paper (current ratio 253%), and working capital was ¥506 million, providing a near-term cushion. Balance sheet solvency appears acceptable, with liabilities of ¥424 million versus equity of ¥383 million, implying liabilities-to-equity of 1.11x and an implied equity ratio of about 59% based on provided totals. Interest expense remained modest at ¥1.0 million and interest coverage is negative due to operating losses. No dividend was declared (DPS ¥0), aligning with the current loss-making position and cash preservation. Several items (e.g., cash balance, inventories, equity ratio, capex) are reported as zero and should be treated as undisclosed rather than true zero values, which limits precision in analyzing cash runway and investment intensity. Overall, while revenue momentum is encouraging, the unchanged operating loss and negative ROE highlight a need for either stronger gross margin improvement or meaningful operating expense discipline to achieve breakeven.

Profitability Analysis

ROE_decomposition: ROE -57.18% = Net margin (-33.64%) × Asset turnover (0.998x) × Financial leverage (1.70x). The principal drag is margin; asset efficiency is roughly in line with a small IT/services business, and leverage is moderate. margin_quality: Gross margin of 34.3% provides headroom but not enough to cover operating expenses, yielding an operating margin of approximately -31.5% and an ordinary margin of -31.3%. The gap between gross and operating margins indicates a high fixed-cost base (personnel, development, SG&A) relative to current scale. operating_leverage: Despite 25.3% YoY revenue growth, operating loss remained at -¥205 million (flat YoY), implying negative or muted operating leverage in the period. This suggests that cost growth (fixed and semi-variable) kept pace with, or exceeded, gross profit expansion.

Growth Assessment

revenue_sustainability: Revenue grew to ¥651 million (+25.3% YoY), indicating healthy demand and/or successful project delivery. Sustainability will depend on backlog conversion, contract renewals, and customer diversification; these data are not disclosed here. profit_quality: Gross profit improved in absolute terms, but negative operating profitability persists. The persistence of losses implies that incremental revenue currently contributes insufficiently to fixed cost absorption. outlook: To reach break-even, the company must either lift gross margin (pricing, mix, utilization) or reduce operating expenses. With OCF less negative than net income, there are signs of underlying cash conversion improvement, but visibility is limited due to undisclosed cash and capex data.

Financial Health

liquidity: Current assets ¥835.6 million vs current liabilities ¥329.7 million; current ratio 253% and quick ratio 253% (inventories undisclosed). Working capital is ¥505.9 million, suggesting ample near-term liquidity on reported figures. solvency: Total liabilities ¥424.1 million and equity ¥383.0 million imply liabilities/equity of 1.11x. Using total assets of ¥652.0 million, implied equity ratio is approximately 58.7%. Interest expense is low (¥1.0 million), but negative operating income yields negative interest coverage. capital_structure: Financial leverage of 1.70x indicates moderate gearing. The ongoing net losses, if sustained, could erode equity through the fiscal year, pressuring capital adequacy over time.

Cash Flow Quality

earnings_quality: OCF of -¥25.3 million versus net loss of -¥219.0 million yields an OCF/NI ratio of 0.12 (less negative OCF than earnings), indicating non-cash charges and/or working capital support. However, EBITDA remains negative, pointing to underlying operating weakness. FCF_analysis: Investing CF is reported as zero (undisclosed), so free cash flow cannot be reliably computed. If capex and development outlays exist but are unreported, true FCF could be weaker than OCF. working_capital: Positive working capital of ¥505.9 million underpins OCF stabilization. Detailed drivers (receivables, unbilled, payables) are not disclosed; thus, durability of working capital support is uncertain.

Dividend Sustainability

payout_ratio_assessment: DPS is ¥0 and payout ratio is 0% given net losses. With negative earnings and negative OCF, distributing dividends would not be supported by current fundamentals. FCF_coverage: FCF coverage is shown as 0.00x due to undisclosed investing flows; even if OCF were modestly negative, sustainable cash-funded dividends are not indicated. policy_outlook: Given continuing losses and a focus on funding operations, cash preservation is prudent. Any future dividend consideration would likely follow a return to sustained profitability and positive OCF.

Risk Assessment

Business Risks:

• Execution risk in scaling projects while improving gross margin
• Dependence on key customers or large projects (typical in small-cap IT/services)
• Pricing pressure and competitive intensity in digital/location-based services
• Potential project delays or cost overruns impacting revenue recognition and margins
• Human capital retention and cost inflation affecting SG&A

Financial Risks:

• Continued operating losses eroding equity and capital adequacy
• Negative interest coverage despite low interest expense
• Potential need for external financing if cash burn persists (dilution risk)
• Working capital volatility affecting OCF
• Limited visibility on cash balance and capex due to undisclosed items

Key Concerns:

• Operating loss unchanged YoY despite 25%+ revenue growth
• EBITDA margin of -31.4% signaling insufficient scale or cost structure rigidity
• Negative ROE (-57.2%) driven by deep net margin losses
• Limited disclosure for cash, capex, and inventories constrains cash runway analysis

Investment Implications

Key Takeaways:

• Strong top-line growth (+25.3% YoY) but profitability remains negative across all levels
• Gross margin at 34.3% is not yet adequate to absorb fixed costs; operating margin -31.5%
• OCF is closer to breakeven than earnings imply, but EBITDA is still materially negative
• Balance sheet shows moderate leverage with implied equity ratio around 59%
• Liquidity appears adequate (current ratio 253%), though cash disclosure is limited

Metrics to Watch:

• Gross margin trajectory and mix/pricing improvements
• Operating expense growth versus revenue growth (operating leverage)
• Quarterly OCF and working capital movements (receivables/unbilled vs payables)
• Cash and equivalents and any changes in credit lines
• Capex and development investments (to refine FCF outlook)
• Order backlog and customer concentration indicators
• Progress toward operating breakeven and interest coverage

Relative Positioning: Relative to small-cap TSE IT/services peers, Bemap shows above-average revenue growth but below-average profitability and cash flow, with an adequate capital base and liquidity yet limited visibility on cash and capex.

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