SOURCENEXT CORPORATION FY2026 Q1 Earnings Report

クイックビュー

Executive Summary

For the quarter ended December 2026 (Q1), Revenue was ¥28.7B (YoY +¥1.6B +5.8%), Operating Loss was ¥3.8B (improvement YoY +¥3.0B), Ordinary Loss was ¥3.2B (improvement YoY +¥5.2B +61.6%), and Quarterly Net Loss attributable to owners of parent was ¥2.5B (improvement YoY +¥4.0B +61.6%). Top-line growth and SG&A cost containment reduced the operating loss by 44.7%, and Net Loss improved by 57.4% YoY. Cost of sales ratio improved to 47.3% from 49.0% a year earlier (improvement of 1.7pt), lifting gross margin to 52.7%. On the other hand, non-operating items (foreign exchange loss ¥9,136万円 and equity-method loss ¥3,254万円) pressured ordinary profit, and Comprehensive Income was a loss of ¥6.5B due to deterioration in valuation differences on available-for-sale securities.

業績変動要因

【売上高】Revenue was ¥28.7B, up +5.8% from ¥27.1B in the same period last year. Because of a single-segment structure, business breakdown by segment is not disclosed, but the core businesses are planning, development and sales of software and hardware products and other service businesses. Cost of sales was ¥13.6B (¥13.3B prior year), a slight increase, and Gross Profit expanded to ¥15.1B (¥13.8B prior year), +9.5%. Gross margin improved to 52.7% from 49.0% a year earlier (+1.7pt), reflecting product mix improvement and pricing policy effects.

【損益】SG&A was ¥18.9B, down -8.3% from ¥20.6B a year earlier, reflecting cost controls. SG&A ratio remained high at 65.9% but improved from 76.0% a year earlier (-10.1pt). Operating loss narrowed by ¥3.0B to ¥3.8B (loss of ¥6.8B prior year), and operating margin improved to -13.1% from -25.0% (+11.9pt). In non-operating items, interest income ¥673万円 and foreign exchange gain ¥7,294万円 were recorded, but foreign exchange loss ¥9,136万円, equity-method loss ¥3,254万円 and interest expense ¥2,517万円 occurred, widening non-operating loss by ¥66.51M relative to the operating loss. Ordinary loss improved to ¥3.2B (loss of ¥8.4B prior year), +61.6%. Extraordinary items included extraordinary gains of ¥564万円 from cancellation of stock acquisition rights related to business restructuring and extraordinary losses of ¥1,816万円 for business restructuring costs, resulting in net extraordinary loss of ¥1,252万円. Loss before income taxes was ¥3.5B; after corporate taxes and others of ¥212万円, Quarterly Net Loss was ¥3.5B (loss of ¥8.2B prior year). After deducting non-controlling interests loss of ¥1.0B, Quarterly Net Loss attributable to owners of parent was ¥2.5B (loss of ¥6.4B prior year), a +61.6% improvement, reflecting revenue increase and loss reduction.

主要財務指標

【収益性】Operating margin was -13.1%, improved +11.9pt from -25.0% a year earlier; Net margin was -8.6%, improved +15.2pt from -23.8% a year earlier. ROE was -5.7%; despite margin improvement, it remains negative. Gross margin of 52.7% rose +1.7pt YoY, confirming effects of product mix and pricing policy. 【キャッシュ品質】DSO (Days Sales Outstanding) was 197.6 days, DIO (Days Inventory Outstanding) was 757.3 days, and CCC (Cash Conversion Cycle) was 886.6 days, indicating prolonged cycles, with notable inventory buildup and collection delays. Days Payable Outstanding was 68.3 days, indicating a relatively short payment cycle and that deterioration in working capital efficiency is hindering cash generation. 【投資効率】Total asset turnover was low at 0.21x, indicating no improvement in asset efficiency. Intangible fixed assets were ¥15.7B (of which software ¥12.4B), likely including internally developed assets, accounting for 11.5% of total assets. 【財務健全性】Equity Ratio was 45.4% (46.7% prior year), within a stable range, but total interest-bearing debt of ¥46.5B (short-term borrowings ¥31.0B, long-term borrowings ¥13.0B, corporate bonds ¥2.5B) versus cash and deposits of ¥46.2B yields a net interest-bearing debt difference of ¥30M, i.e., nearly zero net debt. Current ratio was 181.4% and quick ratio was 132.6%, indicating short-term liquidity is secured, but short-term debt ratio was 73.1%, showing concentration in maturities and posing refinancing risk. Interest coverage was -14.9x (negative), indicating caution on debt servicing capacity.

キャッシュフロー分析

Cash flow statement data are not disclosed, so funding trends are analyzed from balance sheet movements. Cash and deposits were ¥46.2B, down ¥3.0B from ¥49.2B a year earlier. Accounts receivable were ¥15.8B, nearly flat from ¥15.9B prior year, but the DSO elongation amid revenue growth suggests collection delays. Inventories were ¥27.6B, down ¥1.9B from ¥29.5B prior year, but with DIO of 757 days inventory stagnation is extremely prolonged, suggesting mismatch between product demand and inventory management. Investment securities were ¥20.5B, down ¥3.2B from ¥23.7B prior year, indicating possible recognition of valuation losses or partial disposals. Accounts payable were ¥2.7B, down ¥1.9B (-42.0%) from ¥4.6B prior year, implying shortened payment terms or procurement adjustments. Short-term borrowings of ¥31.0B were unchanged YoY; long-term borrowings were ¥13.0B (¥13.1B prior year), so interest-bearing debt is stable. Net assets were ¥62.0B, down ¥5.9B from ¥67.9B prior year, impacted by quarterly net loss ¥2.5B as well as deterioration in valuation differences on available-for-sale securities ¥3.0B and fluctuations in foreign currency translation adjustments. With prolonged working capital, sharp decline in accounts payable and reduced cash balances, short-term cash generation capacity is weak; inventory reduction and stronger collections are top priorities.

収益の質

Against an operating-stage loss of ¥3.8B, non-operating items produced a net loss of ¥6,651万円, with swings in foreign exchange (gain ¥7,294万円 and loss ¥9,136万円) and equity-method loss ¥3,254万円 pressuring Ordinary Income. The +61.6% improvement at the Ordinary Income stage exceeded the +44.7% improvement at the operating stage, aided by improvement in non-operating items (non-operating loss narrowed from ¥160M prior year to ¥70M this period). Extraordinary items were net loss ¥1,252万円, with limited impact from business restructuring-related items. Comprehensive Income was -¥6.5B; relative to Quarterly Net Loss -¥3.5B, deterioration in valuation differences on available-for-sale securities of -¥3.0B (from +¥4,938万円 prior year to -¥2.5B this period) significantly pulled down Comprehensive Income. The divergence between Comprehensive Income and Net Income is a temporary factor due to market-driven valuation losses and is unrelated to recurring earning power, but increases volatility in net assets. As operating losses persist, improvements at Ordinary and Net Income levels were partly supported by non-operating and one-off factors; sustainable earnings quality depends on achieving operating profitability.

リスク要因

1. Inventory stagnation risk: Inventories ¥27.6B and DIO 757 days remain extremely prolonged. Missed demand forecasts for software and hardware products or shortening product cycles could materialize in obsolescence, valuation losses, and downward pricing pressure. Quantitatively, inventories correspond to roughly 10 months of sales, and without improved turnover, achieving positive Operating Cash Flow will be difficult.

2. Short-term debt concentration risk: Of short-term liabilities ¥54.6B, short-term borrowings ¥31.0B are central, and short-term debt ratio is high at 73.1%. Although cash and deposits ¥46.2B secure liquidity, maturity mismatches and refinancing risk exist, and in a rising interest rate environment increased interest expense (¥2,517万円 this period) could pressure results. Interest coverage of -14.9x indicates vulnerability in debt-servicing capacity.

3. FX and equity-method investment risk: Foreign exchange loss ¥9,136万円 and equity-method loss ¥3,254万円 pressured Ordinary Income, resulting in non-operating loss of ¥6,651万円. Investment securities ¥20.5B (15.0% of total assets) may include investments in equity-method affiliates, and deterioration in investee performance or continued FX volatility could cause ongoing swings in profit and Comprehensive Income.

業種ベンチマーク（参考・当社調べ）

収益性・リターン

Profitability is substantially below the Information & Communications industry median, with both operating and net income ranking in the lower end of the industry.

成長性・資本効率

Growth rate is below the median, placing the company in a mid-to-lower growth pace within the industry.

※Source: Company compilation

決算上の注目ポイント

1. Operating-stage improvement trends are observable, but deterioration in working capital efficiency (CCC 886 days) is hindering cash generation; inventory reduction and strengthened accounts receivable collection are prerequisites for profitability and sustainable growth. The -42% decline in accounts payable suggests changes in payment terms and requires monitoring for short-term cash flow impacts.

2. Short-term debt ratio of 73.1% and the skewed maturity profile are notable, and Interest Coverage of -14.9x highlights vulnerability in debt-servicing capacity. With cash and interest-bearing debt nearly balanced, delayed operating profitability or deterioration in refinancing conditions could impair financial stability.

3. Continued volatility in Comprehensive Income (valuation differences on available-for-sale securities -¥3.0B) is depressing net assets, and attention is needed to the risk of equity volatility due to market movements. FX and equity-method investment impacts on earnings are also ongoing monitoring points.

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This report is an earnings analysis document automatically generated by AI based on XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by our firm based on public financial statement data. Investment decisions should be made at your own responsibility, and, if necessary, after consulting with a professional.