Sansan,Inc. FY2026 FY Earnings Report

クイックビュー

Executive Summary

FY May 2026 consolidated results delivered Revenue of ¥537.6B (YoY +¥105.6B +24.4%), Operating Income of ¥81.8B (YoY +¥53.8B +192.3%), Ordinary Income of ¥81.7B (YoY +¥54.3B +197.8%), and Net Income of ¥64.7B (YoY +¥58.5B +943.1%), achieving revenue growth and substantial profit expansion. Operating margin reached 15.2% (up +8.7pt from 6.5% a year earlier), a record high, highlighting clear operating leverage. The sharp rise in Net Income was driven not only by large operating profit growth but also by Special Gains of ¥15.7B (including ¥14.4B gain on sale of subsidiary shares). The core Sansan/Bill One segment drove high-margin growth with Revenue of ¥468.5B (+24.0%) and Operating Income of ¥83.4B (+132.9%, margin 17.8%), while the Eight segment also turned profitable with Revenue of ¥67.2B (+33.0%) and Operating Income of ¥2.4B (+276.2%, margin 3.5%). Operating Cash Flow (OCF) was ¥96.4B, 1.5x Net Income, indicating strong cash generation, and Free Cash Flow (FCF) was secured at ¥90.3B.

業績変動要因

【Revenue】Revenue was ¥537.6B (+24.4%), maintaining high growth. By segment, Sansan/Bill One recorded ¥468.5B (+24.0%), accounting for 87.2% of consolidated Revenue, supported by continued demand for digitalization of business card and invoice management. Eight achieved ¥67.2B (+33.0%), outpacing the core segment through expansion of B2C and B2B services built on the business card app. Other segments contracted to ¥4.2B (-18.9%) but had limited impact on consolidated results. Gross profit was ¥472.6B (gross margin 87.9%, up +1.3pt from 86.6%), reinforcing a high gross-margin subscription-centered structure. Deferred revenue (advance payments) increased substantially to ¥214.9B (from ¥174.7B, +¥40.2B), indicating steady progress in new customer acquisition and renewals.

【Profitability】Operating Income expanded sharply to ¥81.8B (+192.3%). SG&A was ¥390.8B (+12.9%), substantially below Revenue growth (+24.4%), producing operating leverage and lifting Operating margin to 15.2% (up +8.7pt from 6.5%). Cost structure including goodwill amortization ¥1.3B and depreciation ¥9.0B became more efficient, with Sansan/Bill One margin of 17.8% driving consolidated profitability. Non-operating income and expenses were roughly balanced (non-operating income ¥1.1B, non-operating expenses ¥1.2B), and Ordinary Income reflected operating improvement at ¥81.7B (+197.8%). Extraordinary items comprised Special Gains of ¥15.7B (¥14.4B gain on sale of subsidiary shares, ¥0.9B gains on sale of investment securities, etc.) less Special Losses of ¥3.7B (impairment losses ¥2.3B, head office relocation costs, etc.), resulting in a net uplift of approximately +¥12.0B. Profit before tax was ¥93.8B; after deducting income taxes of ¥26.0B, Net Income rose to ¥64.7B (+943.1%). By segment, Sansan/Bill One delivered Operating Income of ¥83.4B (+132.9%) as the dominant contributor, Eight turned profitable with Operating Income of ¥2.4B (up ¥1.8B from ¥0.6B), and Others had an Operating loss of ¥1.5B (widening from △¥0.9B) but with limited consolidated impact. In summary, the company achieved double-digit Revenue growth, significant operating margin improvement, and final profit increase aided by Special Gains.

セグメント別分析

Sansan/Bill One recorded Revenue ¥468.5B (+24.0%), Operating Income ¥83.4B (+132.9%), and margin 17.8%, solidifying its position as the core business. Both the enterprise business-card AX service "Sansan" and the accounting AX service "Bill One" benefited from tailwinds such as digitalization and compliance with the Electronic Books Storage Act, enhancing presence in the enterprise SaaS market. The large margin improvement was due to economies of scale and SG&A efficiency, and the segment accounts for 101.9% of consolidated Operating Income as the core earnings source. Eight posted Revenue ¥67.2B (+33.0%), Operating Income ¥2.4B (+276.2%), and margin 3.5%, turning profitable from a loss in the prior year. Monetization of B2C and B2B services based on the "Eight" business-card app progressed, contributing to consolidated margin improvement. Other segments contracted to Revenue ¥4.2B (-18.9%) with Operating loss ¥1.5B (loss ratio -35.9%), but their impact on consolidated results is limited. The disparity in segment margins highlights the high profitability of Sansan/Bill One and the high business concentration with 87.2% revenue share.

主要財務指標

【Profitability】Operating margin 15.2% (up +8.7pt from 6.5%), Net margin 12.0% (up +10.6pt from 1.4%), showing significant improvement. Gross margin 87.9% (up +1.3pt from 86.6%) reflects the high-margin subscription business, and SG&A ratio 72.7% (improved -7.4pt from 80.1%) confirms operating leverage. ROE is 30.7%, very high, driven by the jump in Net margin, asset turnover 0.98 (roughly flat), and financial leverage 2.61x. ROA (on Ordinary Income basis) is 15.9% (up +9.5pt from 6.4%), indicating improved asset efficiency. EBITDA is ¥91.9B (Operating Income ¥81.8B + Depreciation ¥9.0B + Goodwill amortization ¥1.3B), with an EBITDA margin of 17.1% at a high level. 【Cash quality】OCF ¥96.4B is 1.5x Net Income ¥64.7B, indicating healthy cash conversion. OCF/EBITDA ratio is 1.05x, showing good cash conversion. Accrual ratio is -4.8% (= (Net Income ¥64.7B - OCF ¥96.4B) ÷ Total Assets ¥549.6B), indicating conservative revenue recognition. 【Investment efficiency】Asset turnover 0.98, Capex/Depreciation ratio 0.22, maintaining an asset-light model, with ¥24.2B tangible fixed assets and ¥18.4B intangible assets balance. Goodwill ¥8.7B and Goodwill/EBITDA ratio 0.09x indicate minimal M&A-related burden. 【Financial soundness】Equity Ratio 38.4% (up +7.2pt from 31.2%), Current Ratio 138.5%, Quick Ratio 138.5% show strong short-term payment ability. Interest-bearing debt (long-term borrowings ¥8.7B + bonds ¥0.7B + bonds maturing within one year ¥0.4B + short-term borrowings ¥17.5B) totals ¥27.3B versus cash and deposits ¥370.1B, resulting in Net Cash ¥342.8B and a robust balance sheet. Debt/EBITDA ratio 0.30x and Interest Coverage 264x (Operating Income ¥81.8B ÷ Interest expense ¥0.3B) indicate minimal interest burden.

キャッシュフロー分析

OCF was ¥96.4B (YoY -0.1%), nearly flat and 1.5x Net Income ¥64.7B, demonstrating healthy cash conversion. OCF before working capital changes was ¥109.8B, with non-cash adjustments—Depreciation ¥9.0B, Goodwill amortization ¥1.3B, provisions increase ¥4.4B, stock-based compensation ¥1.1B—added to Operating Income ¥81.8B, supporting cash generation. In working capital, increase in deferred revenue (advance payments) of ¥40.4B contributed significantly to cash inflow, with the contract advance structure of SaaS business supporting liquidity. Accounts receivable were almost flat (+¥0.3B), and a decrease in accounts payable (-¥4.6B) partially offset inflows, while increases in other assets (-¥23.7B) and accrued taxes and other payables (+¥6.8B) meant net working capital changes did not materially impede OCF. After tax payments of ¥13.8B, OCF was ¥96.4B. Investing Cash Flow was -¥6.1B: Capex ¥2.0B and intangible asset acquisitions ¥6.8B were made as growth investments, while proceeds from sale of subsidiary shares ¥15.4B and sale of investment securities ¥21.6B flowed in; net of investment securities purchases ¥28.2B, investing activities resulted in a modest outflow. FCF was ¥90.3B (OCF ¥96.4B + Investing CF -¥6.1B), ample to support growth investments funded from internal cash and shareholder returns. Financing Cash Flow was -¥33.7B, reflecting repayment of long-term borrowings ¥11.9B, share buybacks ¥7.4B, and dividends ¥3.2B, partially offset by increase in short-term borrowings ¥1.8B, resulting in net cash outflow. Cash and deposits at year-end increased to ¥370.1B (from ¥311.7B, +¥58.4B), reinforcing a very strong liquidity buffer.

収益の質

Net Income ¥64.7B includes a net one-off uplift of approximately +¥12.0B from Special Gains ¥15.7B (including ¥14.4B gain on sale of subsidiary shares, ¥0.9B gain on sale of investment securities, etc.) less Special Losses ¥3.7B (impairment losses ¥2.3B, disposal/loss on sale of fixed assets ¥0.2B, valuation losses on investment securities ¥0.5B, etc.). The ¥14.4B gain on sale of subsidiary shares is a non-recurring factor; when assessing future Net Income levels, it is necessary to assume this one-off gain will not recur. Non-operating items were near neutral (interest income received ¥0.8B, interest expense paid ¥0.3B, other non-operating expenses ¥0.4B), net -¥0.1B, so Ordinary Income ¥81.7B largely reflects Operating Income ¥81.8B. Non-operating income ¥1.1B is only 0.2% of Revenue ¥537.6B, indicating earnings are driven primarily by core operations with low dependency on financial income or forex gains. OCF ¥96.4B is 1.5x Net Income ¥64.7B; OCF/EBITDA ratio 1.05x indicates high earnings quality, and accrual ratio -4.8% suggests conservative recognition. Increase in accounts receivable was minor (+¥0.3B), and the increase in deferred revenue of ¥40.4B reflects strong new contracts and renewals; no signs of opportunistic working capital manipulation were observed. The divergence between Ordinary Income and Net Income is +14.9% (Ordinary Income ¥81.7B vs Net Income ¥64.7B; Profit before tax ¥93.8B), with net positive special items and tax burden (effective tax rate 27.7%) pushing final profit. Overall, operating improvements appear structural and sustainable, but the one-off contribution from Special Gains means part of this fiscal year’s Net Income is transient.

株主還元

Year-end dividend is ¥2.5 per share, with total dividends of approximately ¥3.2B (based on outstanding shares 126,801 thousand - treasury shares 663 thousand = 126,138 thousand shares). Payout Ratio is 4.7% (Dividend ¥2.5 ÷ EPS ¥53.58), remaining very conservative. Additionally, share buybacks of ¥7.4B were conducted, making total shareholder return approximately ¥10.6B; Total Return Ratio versus Net Income ¥64.7B is about 16.4%. With FCF ¥90.3B, dividend coverage by FCF is about 28x and FCF coverage for total returns is about 8.5x, indicating ample room and sustainability for returns. Net Cash ¥342.8B and stable OCF ¥96.4B suggest high flexibility for future dividend increases or additional share buybacks. The current shareholder return stance can be viewed as an early stage of returns while prioritizing growth investment, with substantial scope to strengthen returns in the future.

リスク要因

1. Business concentration risk: With Sansan/Bill One accounting for 87.2% of Revenue and 101.9% of Operating Income, high concentration creates structural vulnerability whereby slowdown in that segment’s growth or increased churn would directly affect consolidated performance. Given SaaS characteristics, deterioration in NRR/ARPU or intensified competition leading to pricing pressure could rapidly deteriorate consolidated margins.

2. Liquidity risk from reliance on deferred revenue: Of current liabilities ¥318.3B, deferred revenue ¥214.9B (67.5%) is a significant component; declines in renewal rates or slowdown in new customer acquisition could materially worsen OCF. Although cash of ¥370.1B underpins liquidity, worsening renewal rates or increasing churn would immediately reduce cash flow quality.

3. Loss of special gains and sustainability of Net Income: FY Net Income ¥64.7B includes net Special Gains (gain on sale of subsidiary shares ¥14.4B etc.) of about +¥12.0B; if these one-offs disappear in subsequent years, Net Income could normalize to the low ¥50B range. While sustainability is high if operating profit growth continues, ongoing operating profit expansion is essential to meet market expectations.

業種ベンチマーク（参考・当社調べ）

収益性・リターン

Both Operating and Net Margins substantially exceed industry medians, demonstrating a high-profit model within the Information & Communications sector.

成長性・資本効率

Revenue growth is more than double the industry median, maintaining high growth.

※Source: Company compilation

決算上の注目ポイント

1. Realization of operating leverage and structural margin improvement: With Revenue +24.4% versus SG&A +12.9%, the growth of operating expenses was tightly controlled, driving Operating margin to 15.2% (up +8.7pt from 6.5%). Economies of scale in the SaaS model are taking effect, and combined with a high gross margin of 87.9%, there remains significant room for margin improvement so long as revenue growth continues. The core Sansan/Bill One margin of 17.8% is leading the company, and Eight’s transition to profitability also contributes to consolidated margin improvement; the profitability trend is in a structural improvement phase.

2. Strong cash generation and scope to expand shareholder returns: With OCF ¥96.4B and FCF ¥90.3B, and Net Cash ¥342.8B, the company maintains a robust financial position while keeping payout ratio 4.7% and Total Return Ratio 16.4% at very conservative levels. There is ample scope for dividend increases or additional share buybacks, enabling flexible capital allocation to balance growth investment and shareholder returns. The increase in deferred revenue ¥214.9B (+¥40.2B) indicates contract prepayments and lock-in, supporting short-term sustainability of cash generation.

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This report was generated by AI analyzing XBRL financial statement data and is an automatically generated earnings analysis. It does not constitute a recommendation to invest in any specific securities. Industry benchmarks are reference information compiled by the firm based on publicly disclosed financial statements. Investment decisions should be made at your own responsibility, and, as necessary, after consulting professional advisors.