INTAGE HOLDINGS Inc. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥14.36B
• Operating Income: ¥572M
• Net Income: ¥1.12B
• EPS: ¥7.65

Income Statement

Balance Sheet

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

INTAGE Holdings (4326) reported FY2026 Q1 consolidated results under JGAAP with revenue of ¥14.361bn, down 4.6% YoY, but operating income of ¥0.572bn surged 205.6% YoY, indicating a sharp improvement in operating efficiency and/or mix. Gross profit was ¥5.265bn, implying a healthy gross margin of 36.7%, which appears resilient despite top-line softness. Operating margin improved to roughly 4.0%, reflecting effective cost controls or lower SG&A intensity versus the prior year. Ordinary income of ¥0.565bn was slightly below operating income, suggesting minor net non-operating costs in the quarter. Net income was ¥0.292bn, down 74.2% YoY, resulting in a compressed net margin of 2.03%; this disconnect from operating momentum points to below-the-line headwinds, most notably an unusually high reported income tax line. The income tax expense of ¥0.571bn exceeds ordinary income, which is atypical for a profitable quarter and likely reflects timing, special tax items, or classification differences under JGAAP. Leverage remains modest with assets of ¥44.673bn and equity of ¥32.797bn, yielding financial leverage of 1.36x and a debt-to-equity of ~0.41x, supportive of balance sheet resilience. Liquidity is strong with current assets of ¥30.533bn and current liabilities of ¥12.567bn, translating to a current ratio of 243% and sizeable working capital of ¥17.97bn. Interest burden is very light (interest expense ¥2.18m), and interest coverage is ample at ~263x based on operating income. DuPont decomposition indicates low ROE of 0.89%, driven by a thin net margin (2.03%), modest asset turnover (0.321x), and conservative leverage (1.36x); the main drag is profitability below the operating line. Cash flow statements, depreciation/amortization, and cash balances were not disclosed in the XBRL (zeros indicate missing, not actual zero), limiting assessment of earnings-to-cash conversion for the quarter. Dividend data were also not disclosed in this dataset; thus payout and FCF coverage metrics shown as zero should not be interpreted as actual. Overall, Q1 shows clear operating recovery on weaker revenue, but bottom-line volatility due to tax/non-operating items suppresses ROE. The strong liquidity and modest leverage mitigate financial risk while the service-oriented balance sheet (no inventories reported) supports flexibility. Key focus areas ahead include the persistence of margin gains, normalization of the effective tax rate, and cash flow generation once disclosed. Given missing cash flow and DPS details, conclusions on earnings quality and dividend capacity remain provisional.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 2.03%
• asset_turnover: 0.321x
• financial_leverage: 1.36x
• calculated_ROE: 0.89%
• commentary: ROE is constrained primarily by the low net margin despite a notable improvement at the operating line. Asset turnover is modest for an information services/model, and leverage remains conservative, limiting ROE amplification. margin_quality: Gross margin of 36.7% looks solid given a 4.6% revenue decline, implying favorable mix or improved project profitability. Operating margin improved to ~4.0%, suggesting SG&A discipline and operating efficiency. However, the net margin at 2.03% is depressed by below-the-line effects, notably a large tax expense relative to ordinary income. operating_leverage: Strong positive operating leverage is evident: operating income rose 205.6% YoY on a 4.6% revenue decline, indicating significant cost base flexibility and/or normalization from prior-year one-offs. Sustainability depends on maintaining SG&A efficiency and stable gross margins as volumes evolve.

Growth Assessment

revenue_sustainability: Revenue contracted 4.6% YoY to ¥14.361bn. The absence of segment detail limits diagnosis, but the service nature suggests exposure to client marketing budgets and project timing. Near-term sustainability hinges on client demand in research/data analytics and backlog conversion. profit_quality: Operating profit recovery is notable and likely driven by cost control and mix. However, the gap between operating and net income—driven by an outsized tax line—lowers profit quality at the bottom line. Without D&A and OCF disclosure, assessing the non-cash versus cash nature of earnings is not possible this quarter. outlook: If operating discipline holds and the effective tax rate normalizes, bottom-line recovery could align with operational momentum. Revenue stabilization is key; maintained gross margin and lean SG&A could support profit resilience even in a flat-demand environment.

Financial Health

liquidity: Current assets ¥30.53bn vs. current liabilities ¥12.57bn yields a current ratio of 243% and strong working capital of ¥17.97bn. Quick ratio appears equivalent given no inventory reported; however, inventory disclosure is missing rather than confirmed zero. solvency: Total liabilities of ¥13.60bn vs. equity of ¥32.80bn imply a debt-to-equity of ~0.41x and financial leverage of 1.36x, indicating a conservative capital structure. capital_structure: Balance sheet tilt is equity-heavy with modest liabilities. Interest costs are minimal (¥2.18m), and coverage is very strong (~263x), underscoring low refinancing or interest rate risk in the near term.

Cash Flow Quality

earnings_quality: OCF, investing CF, financing CF, D&A, and cash balances were not disclosed (zeros reflect missing data). As a result, conversion of earnings into cash and the role of non-cash items cannot be evaluated for Q1. FCF_analysis: Free cash flow cannot be calculated without OCF and capex disclosure. The displayed FCF of zero is not informative. working_capital: Working capital is ample at ~¥17.97bn, supporting operations. Without cash flow detail, we cannot assess quarter-to-quarter working capital swings or cash release/absorption.

Dividend Sustainability

payout_ratio_assessment: Dividend per share and payout ratio are not disclosed in this dataset; values shown as zero should not be interpreted as actual. Based on earnings alone (EPS ¥7.65 in Q1), there is capacity for distributions, but the anomalous tax burden introduces volatility to distributable profit. FCF_coverage: Not assessable due to missing OCF and capex. Any FCF coverage ratio derived from zero inputs is not meaningful. policy_outlook: With strong liquidity and low leverage, balance sheet capacity exists to support dividends if policy prioritizes stability. However, visibility requires confirmed cash generation and clarification of tax/one-off items affecting net profit.

Risk Assessment

Business Risks:

• Client budget cyclicality affecting research and data analytics project volumes
• Project timing and mix shifts impacting quarterly revenue recognition and gross margin
• Competitive intensity in marketing research and digital data services
• Potential delays in new service launches or data platform monetization

Financial Risks:

• Bottom-line volatility from tax items or non-operating effects under JGAAP
• Limited visibility on cash generation due to undisclosed cash flow statements this quarter
• Exposure to working capital swings given project-based billing and receivables
• Potential FX impacts on any overseas operations or data procurement (if applicable)

Key Concerns:

• Discrepancy between strong operating profit growth and sharp net income decline
• Unusually high reported tax expense relative to ordinary income
• Absence of cash flow and D&A disclosures limiting earnings quality assessment

Investment Implications

Key Takeaways:

• Operating recovery is strong despite a 4.6% revenue decline; operating margin improved to ~4.0%
• Net income fell 74.2% YoY due to below-the-line effects, notably a large tax expense
• ROE at 0.89% reflects compressed net margin and conservative leverage
• Balance sheet is robust with current ratio 243% and low debt burden (~0.41x D/E)
• Interest expense is negligible with ~263x coverage, reducing financial risk
• Cash flow and dividend data are undisclosed; earnings-to-cash conversion cannot be assessed

Metrics to Watch:

• Effective tax rate normalization and reconciliation to ordinary income
• Order backlog, book-to-bill, and revenue trajectory in coming quarters
• Gross margin stability and SG&A ratio to revenue
• Disclosure of OCF and capex to establish FCF trend
• DSO/working capital movements to gauge cash conversion
• Any updates on dividend policy and interim DPS

Relative Positioning: Within Japan’s information services/marketing research cohort, the company currently exhibits strong liquidity and low leverage with improved operating efficiency, but trails on bottom-line stability and ROE due to unusual tax/non-operating impacts; confirming cash conversion and tax normalization is key to closing the gap.

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