RAKSUL INC. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥17.23B
• Operating Income: ¥1.13B
• Net Income: ¥431M
• EPS: ¥13.95

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 Integrated Analysis

Analysis integrating XBRL data (GPT-5) and PDF earnings presentation (Claude)

Executive Summary

Raksul (4384) delivered a solid FY2026 Q1 with broad-based top-line growth and margin resilience. Revenue rose 17.2% YoY to 172.35, indicating healthy demand across core businesses. Gross profit of 50.62 implies a gross margin of 29.4%, consistent with a platform model that scales with volume while maintaining procurement efficiency. SG&A was 40.89, yielding operating income of 11.26 (+15.8% YoY) and an operating margin of 6.5%, suggesting operating leverage despite continued growth investments. Ordinary income came in at 10.57 (+21.6% YoY), with net non-operating costs modest relative to sales. Net income increased sharply to 8.08 (+87.1% YoY), translating to a net margin of 4.7% and EPS (basic) of 13.95 yen, reflecting improved profitability and possibly lower drag from non-recurring items versus the prior year. DuPont shows ROE at 4.9%, driven by a 4.7% net margin, asset turnover of 0.382, and financial leverage of 2.74x. Liquidity remains strong with a current ratio of 152% and quick ratio of 149%, underpinned by cash and deposits of 155.57. The balance sheet shows interest-bearing loans totaling 128.51 (39.00 short-term, 89.51 long-term), comfortably covered by cash, implying a net cash position of roughly 27.1. Interest coverage is high at 46.9x, underscoring manageable financial risk. Working capital discipline appears tight: inventories are only 5.21, consistent with an asset-light aggregation model. Intangible assets (76.08) including goodwill (66.80) and investment securities (77.82) are sizable, reflecting acquisitive growth and strategic investments. The reported debt-to-equity ratio of 1.72x refers to total liabilities to equity; on a net cash basis, solvency looks conservative. Cash flow statements were not disclosed, limiting assessment of earnings-to-cash conversion and capex intensity this quarter. There are minor reconciliation gaps between some P/L subtotals (e.g., ordinary income vs. non-operating detail; PBT vs. tax/net), so we rely on the provided bottom-line net income and reported ratios for consistency. Overall, Q1 shows sustained growth with improving profit quality, ample liquidity, and adequate coverage to support continued investment.

From Earnings Presentation: For Raksul Inc.’s FY2026 Q1 (Aug–Oct 2025), consolidated revenue was 17,235 million yen (+17.2% YoY), gross profit 6,085 million yen (+20.2%), and EBITDA (non-GAAP) 1,711 million yen (+11.8%), continuing profit-accretive expansion driven by both organic growth and M&A. The PDF deck specifies concrete growth investments: (i) a statement of support for the MBO tender offer, (ii) maintenance of a high organic growth rate of 15.1% in the Procurement Platform business, (iii) a strategic partnership with Canva, (iv) the launch of Raksul Bank, and (v) two M&A deals (acquisition of Dandelion’s “Hanko Bugyo” business and consolidation of Teamlike as a subsidiary). Against the full-year guidance (gross profit 26–27 billion yen, EBITDA 7.2–7.7 billion yen), Q1 progress in the 23% range is solid; management, while prioritizing growth investments, also indicated that quarterly EBITDA is expected to exceed 2.0 billion yen during the year, implying a step-up in the profit run-rate. The GPT analysis’ flags on a high tax rate, elevated goodwill ratio, and modest operating leverage are corroborated in the materials by adjustments totaling 373 million yen for stock-based compensation and goodwill amortization, and continued upfront investments such as 1,136 million yen in advertising and promotion (6.6% of revenue) and 721 million yen in technology investments (4.2%). A disciplined M&A track record of 14 deals at an average EV/EBITDA multiple in the 4x range aligns with financial soundness; balancing growth acceleration and margin improvement remains the focus toward the FY2027 mid-term targets (gross profit 30 billion yen, EBITDA 10 billion yen).

Financial Analysis

Profitability

roe_decomposition: ROE 4.9% = Net margin 4.7% x Asset turnover 0.382 x Leverage 2.74x. The primary driver remains margin expansion/resilience rather than asset intensity, consistent with a platform/marketplace model. margin_quality: - Gross margin: 29.4% (gross profit 50.62 / revenue 172.35), indicating stable unit economics.

• Operating margin: ~6.5% (11.26 / 172.35), supported by SG&A discipline amid growth.
• Net margin: 4.7% (8.08 / 172.35), implying limited leakage below operating line despite some non-operating expense.
• Non-operating: income 0.22 vs expenses 1.26 suggests modest drag; reported ordinary income 10.57 indicates other non-operating items not broken out in the detail. operating_leverage: Revenue +17.2% YoY with operating income +15.8% YoY suggests near-proportional cost scaling; however, ordinary income +21.6% YoY implies leverage below the line. SG&A at 40.89 vs gross profit 50.62 indicates incremental profitability from scale while still investing for growth.

Growth

revenue_sustainability: Double-digit top-line growth (+17.2% YoY) points to healthy demand across verticals (print/logistics/SaaS marketplace). The low inventory intensity and strong receivables base (AR 61.51) suggest volume scale rather than heavy balance sheet use. profit_quality: Net income +87.1% YoY outpaced revenue and operating income, likely reflecting improved non-operating impact or fewer one-offs YoY. Interest expense is minimal (0.24), and coverage is strong, supporting sustainable profitability. outlook: With ample cash, net cash position (~27.1), and scalable cost base, the company is positioned to keep investing in customer acquisition and platform features. Near-term growth depends on sustaining marketplace GMV growth, ad efficiency, and monetization of newer services; given Q1 momentum, full-year growth appears supported, though lack of CF disclosures prevents firming the investment cadence view.

Financial Health

liquidity: Current ratio 152.2% (245.05 / 160.98) and quick ratio 149.0% reflect strong near-term coverage. Cash and deposits of 155.57 cover short-term loans (39.00) comfortably. solvency: Total liabilities 283.23 vs total equity 164.78 implies liabilities/equity of 1.72x. Interest-bearing debt totals 128.51 against cash 155.57, yielding net cash of ~27.1, and interest coverage of 46.9x indicates low financial risk. capital_structure: Equity 164.78 (owners' equity 150.57), capital stock 29.19, retained earnings 62.62. Leverage (assets/equity) at 2.74x, but with substantial cash and investment securities (77.82), balance sheet quality is underpinned by liquid/financial assets.

Cash Flow

earnings_quality: OCF was not disclosed, limiting direct assessment of accruals and cash conversion. Net margin at 4.7% with strong interest coverage suggests operating earnings are not debt-supported. fcf_analysis: Capex and OCF are unreported; thus FCF cannot be calculated. Cash and investments provide a buffer to fund capex and growth initiatives absent external financing in the near term. working_capital: Accounts receivable 61.51 relative to quarterly revenue implies robust collections; inventories are minimal (5.21), indicating low working capital intensity. Payables at 40.32 partially fund operating needs, supporting cash conversion in principle.

Dividend Sustainability

payout_ratio_assessment: Reported payout ratio (calculated) is 22.0% despite DPS not disclosed; this suggests a modest return of capital relative to earnings. EPS (basic) is 13.95 yen; with net income of 8.08 (≈¥80.8bn), this aligns with modest capital return intent. Note: DPS and total dividends are unreported. fcf_coverage: Not assessable this quarter due to absent OCF/FCF data. Cash on hand and net cash position imply headroom to sustain a modest payout if policy targets steady returns. policy_outlook: Given growth orientation and acquisition/investment optionality (goodwill 66.80; investment securities 77.82), the company likely prioritizes reinvestment, maintaining a conservative payout while earnings grow.

Business Outlook

Full-year outlook for FY2026 (ending July) is revenue of 75–77 billion yen, gross profit of 26–27 billion yen, EBITDA of 7.2–7.7 billion yen, and operating income (non-GAAP) of 6.2–6.7 billion yen. At the high end, the organic growth rate is 19.8% for revenue and 19.9% for gross profit, targeting acceleration from last year’s 14.1%/16.9%. The M&A impact embedded in guidance includes only deals completed at the beginning of the year (revenue 2.8 billion yen, gross profit 0.9 billion yen, EBITDA 0.15 billion yen); the two deals announced after the beginning of the year (Dandelion and Teamlike) are excluded, reflecting a conservative stance. Management expects consolidated gross profit growth of 20%+ YoY in Q2 and, while remaining in an investment phase, EBITDA growth of 10%+. For FY26, growth in both gross profit and EBITDA is expected to skew to the second half. Q1 progress versus full-year guidance was revenue 23.0%, gross profit 23.4%, and EBITDA 23.8%, slightly above the 22–23% average of the past three years, indicating a solid start. Investments for growth acceleration (advertising, sales headcount, technology) are proceeding as planned from the start of the year, and management indicated quarterly EBITDA is expected to exceed 2.0 billion yen during the year. The roadmap toward the FY2027 mid-term targets (gross profit 30 billion yen, EBITDA 10 billion yen) is on track; this year, the priority is growth acceleration, with a focus on expanding the absolute level of gross profit rather than margin expansion.

Management Guidance

Management (CEO Nagami, CFO Sugiyama, etc.) emphasized four points: (i) accelerating organic growth, (ii) continuous scale expansion via M&A, (iii) cross-sell and ID platform reinforcement, and (iv) a stepwise increase in profit levels. Sales headcount for Raksul Enterprise was tripled YoY and is planned to be doubled versus the prior fiscal year-end by this year-end; revenue from large corporates reached 1,410 million yen in Q1 (+92% YoY), sustaining high growth. Demand in July–September tends to be seasonally soft, limiting QoQ growth, but annual pace is healthy. Through new services such as the Canva integration and the launch of Raksul Bank, the company aims to build an end-to-end ecosystem from design to printing to payments/finance, maximizing customer LTV. M&A aims to expand product domains (niche-leading categories such as vinyl curtains and stamps) and strengthen production capacity (e.g., Shachihata products), while maintaining discipline with average EV/EBITDA in the 4x range. While continuing investments—advertising and promotion at 6.6% of revenue (Q1: 1,136 million yen) and technology at 4.2% (721 million yen)—management maintained an EBITDA-to-gross-profit margin of 28.1% (Q1), adhering to a Quality Growth policy (growth with profits). However, this year prioritizes growth investments, so margin expansion is expected to be smaller than in the past. Mid-term, gross profit margin is expected to improve (Q1: 33.1% vs. 32.3% a year ago) with scale expansion and increased in-house manufacturing, and operating leverage is projected to rise as fixed costs are absorbed. Regarding taxes, there was no mention of the reasons for the high effective tax rate (not in the PDF but 50.4% in XBRL) or normalization timing; this remains a monitoring point.

Strategic Initiatives

• Accelerating organic growth: increased advertising spend (investments in categories where cross-sell is progressing), tripling Raksul Enterprise sales headcount, and promoting cross-sell through ID platform expansion (purchase frequency +4.7%, purchase unit price +0.7%)
• Strategic partnership with Canva: bidirectional integration enabling connection to Canva from Raksul and placing Raksul print orders from Canva. Starting with business cards and flyers, with plans to expand sequentially to posters, brochures, novelties, apparel, etc. Aims to acquire customers and improve LTV through a seamless design-to-print experience
• Launch of Raksul Bank: leveraging GMO Aozora Net Bank’s BaaS to deliver one of the industry’s lowest transfer fees, 2.0% points back, and account opening as early as the same day. Provides a convenient and economical financial experience for SMEs, with future lending and credit cards in view
• M&A strategy: executed continuously to expand product domains (niche-leading products such as vinyl curtains, stamps, personalized stationery) and strengthen production capacity (expanding share in the stamp/seal domain, capacity for Shachihata products). Since FY2024, 14 deals with cumulative investment of about 7,000 million yen and average EV/EBITDA in the 4x range, maintaining discipline
• Technology investment: expanding the ID platform, developing Raksul Bank, building Canva integration features, and strengthening the platform to maximize group synergies. Q1 technology investment was 721 million yen (4.2% of revenue), up 11% YoY
• Building an ecosystem for mid-sized and small businesses: aiming to become a technology platform that solves management challenges end-to-end by combining the Procurement Platform (printing, packaging materials, business supplies, seals/stamps, etc.) and the Marketing Platform (SaaS, advertising agency, Peraichi, etc.) with finance (banking, payments)
• Continuation of Quality Growth: growth with profits, with gross profit growth of +20.2% and EBITDA growth of +11.8%. Maintaining an EBITDA margin on gross profit of 28.1% (Q1; 25.6% a year ago), and targeting the coexistence of margin improvement and growth acceleration mid-term

Risk Assessment

Business Risks:

• Customer acquisition cost inflation and digital ad ROI normalization pressuring SG&A efficiency
• Competitive intensity in print/logistics marketplaces and SaaS solutions compressing take rates
• Macroeconomic softness impacting SMB marketing spend and order volumes
• Execution risk in integrating acquisitions (elevated goodwill 66.80) and realizing synergies
• Platform reliability and vendor quality control affecting customer satisfaction and repeat rates

Financial Risks:

• Limited visibility on cash conversion due to unreported OCF/FCF this quarter
• Exposure to valuation swings in investment securities (77.82) affecting non-operating results
• Potential impairment risk on goodwill/intangibles if growth underperforms
• Interest rate risk on floating-rate borrowings, partially offset by net cash position

Key Concerns:

• Absence of cash flow disclosure hampers assessment of earnings sustainability and reinvestment capacity
• Minor P/L reconciliation gaps (ordinary income and PBT vs tax/net) reduce clarity on one-offs and tax effects
• ROE at 4.9% remains modest versus high-growth internet peers, requiring continued margin/turnover improvement

Risk Factors from Presentation:

• Change in year-end dividend forecast (no dividend), conditional on MBO completion. If the tender offer fails, the dividend policy may be re-examined
• Volatility in the advertising agency business: in Q1 some projects shifted to Q2, resulting in performance below the initial plan, but management indicates no significant impact on full-year results. Deal-level volatility risk persists
• High ratio of goodwill and intangible assets (goodwill 6,680 million yen, intangible assets 7,608 million yen, total 14,288 million yen, or about 86.7% of net assets of 16,478 million yen). Impairment risk if growth hypotheses at acquired targets are not met
• Sustainability of the high effective tax rate (XBRL: 50.4%). Whether it is temporary or structural is not addressed in the materials, posing a source of net income volatility
• Weak operating leverage: operating income growth of +15.8% (non-GAAP basis) versus revenue growth of +17.2%, indicating slight negative operating leverage. With continued upfront investments, near-term margin expansion is limited
• Competitive environment: risk of intensifying competition across printing, advertising, logistics, and payments. Potential increase in take rate pressure and customer acquisition cost (CAC)
• Seasonality: for Raksul Enterprise (large corporates), Q1 (July–September) tends to be weaker than other quarters. Attention needed to quarterly volatility in revenue and profit
• Interest rate and financial market risk: while current interest coverage of 46.92x is sound, funding costs could rise in a rate-increase environment
• Fair value and liquidity risk in investment securities (7,782 million yen). Performance of equity-method affiliates (e.g., Hakobel) affects consolidated earnings
• Limits in assessing earnings quality due to non-disclosure of cash flows (operating/free). While working capital is healthy, transparency on actual cash generation remains an issue

Investment Implications

Key Takeaways:

• Strong Q1 top-line growth (+17.2% YoY) with resilient gross and operating margins
• Net income growth (+87.1% YoY) outpaced revenue, aided by improved below-the-line impact
• Healthy liquidity: current ratio 152%, quick ratio 149%, and net cash of ~27.1
• High interest coverage (46.9x) indicates low financing risk
• Asset-light operations evidenced by minimal inventories and solid receivables
• ROE 4.9% still subdued; improvements hinge on higher net margins and/or faster asset turns
• Significant intangibles and investment securities introduce non-operating volatility and impairment optionality

Metrics to Watch:

• OCF and FCF (once disclosed) for earnings-to-cash conversion
• Customer acquisition cost, LTV/CAC, and SG&A efficiency trends
• Take rate and gross margin trajectory across marketplace verticals
• Ordinary income reconciliation items and effective tax rate normalization
• Net cash trend and capital allocation between growth, M&A, and shareholder returns

Relative Positioning: Within Japan-listed platform/marketplace peers, Raksul combines above-market revenue growth with conservative balance sheet management (net cash), but currently exhibits mid-single-digit ROE and mid-single-digit operating margins, leaving room for profitability catch-up as scale and monetization improve.

Supplementary Insights (Key Highlights)

• Management expressed support for an MBO by an affiliate of Goldman Sachs (tender offer price 1,710 yen per share, premium of 36.8–48.6%). Year-end dividend guidance changed to no dividend, conditional on the MBO’s completion. Questions on this topic were not taken in this earnings briefing.
• Procurement Platform business: revenue 15,994 million yen (+17.9%), gross profit 5,299 million yen (+20.8%), and segment profit 2,579 million yen (+23.0%), with double-digit growth across all metrics. Organic growth rate was 15.1% (excluding M&A effects), with an aim to accelerate toward fiscal year-end.
• Entered into a strategic partnership with Canva. Enables connection from Raksul to Canva and placing print orders on Canva via Raksul, providing an end-to-end experience from design to printing (starting with business cards and flyers, with sequential expansion).
• Raksul Bank launched on November 27, 2025 (leveraging GMO Aozora Net Bank’s BaaS). Achieves one of the industry’s lowest transfer fees at 119 yen, 2.0% points back on debit card, and account opening as early as the same day. Plans to continue the partnership strategy for future lending and credit cards.
• Two M&A deals: (1) acquisition of Dandelion’s “Hanko Bugyo” business to expand share in the seal/stamp domain, and (2) consolidation of Teamlike to add niche top products such as vinyl curtains. Both maintain discipline with mid–single-digit EV/EBITDA multiples in the first consolidated year.
• Marketing Platform business: revenue 1,161 million yen (+11.7%), gross profit 765 million yen (+18.8%), segment profit 0 million yen (±0). The advertising agency business saw some projects shift to Q2, leading to Q1 results below plan, but with no significant impact on full-year performance. SaaS/Professional Services user count is roughly flat, with a strengthened focus on mid-sized enterprises.
• Management has tripled sales headcount for Raksul Enterprise (for large corporates) YoY, with plans to double versus the prior fiscal year-end by this year-end. Cross-sell–driven increases in purchase frequency (2.2 times, +4.7%) are gradually materializing, with intent to further build toward fiscal year-end.
• Net debt is approximately 2,500 million yen, with net debt to EBITDA (FY25 actual) at a very low 0.26x, implying ample leverage headroom. Goodwill to net assets ratio is 41.9%. Cumulative M&A investment is about 7,000 million yen (average EV/EBITDA in the 4x range), consistent with a healthy balance sheet.

Q&A Insights

From the Q&A section (p.27) of the PDF, the following management comments provide additional insights. (i) Progress of investments to accelerate organic growth: “Investments planned at the beginning of the year are proceeding smoothly. Sales headcount for Raksul Enterprise increased threefold YoY and is expected to double versus the prior fiscal year-end by this year-end. Advertising spend increased by 10% in categories where cross-sell is progressing. Technology investments rose 11% for ID platform expansion, Raksul Bank development, and building integration features with Canva.” (ii) Progress toward the FY2027 mid-term targets: “As per the financial policy announced in 2024, we target gross profit of 30 billion yen and EBITDA of 10 billion yen in FY2027, and we are progressing well toward this goal. Our Quality Growth policy remains unchanged; however, in the current year (FY2026), we prioritize growth acceleration—cross-sell, customer acquisition through sales, and technology investments in the platform—over margin expansion, as the environment for growth investments is in place. That said, EBITDA in a single quarter is expected to exceed 2.0 billion yen during FY26, and the profit level should rise gradually.” (iii) Progress of Raksul Enterprise: “The large-enterprise service Raksul Enterprise continues to grow well, with quarterly revenue of 1,410 million yen, up 92% YoY. As the business scale expands, seasonality is becoming evident, with relatively weaker demand in July–September compared with other months. Therefore, QoQ growth is not large, but annual expansion remains steady. As of FY2026 Q1, the number of client companies reached 6,353 and users 38,305.” (iv) Impact of starting the Raksul Bank business on the balance sheet: “Raksul Bank operates as a banking agency business utilizing GMO Aozora Net Bank’s BaaS (Banking as a Service) platform (acting as a banking agent with the bank as the affiliated institution). Deposits and the like intermediated by Raksul Bank do not pass through the company’s balance sheet. The same partnership strategy will be pursued when considering future services such as lending and credit cards.” These comments clarify management’s discipline in growth investments, commitment to mid-term targets, understanding of segment seasonality, and limiting financial risks in the banking business, thereby adding qualitative and strategic context to the financial picture quantified by the GPT analysis.

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
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