| Metric | Current Period | Prior Year Period | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥392.6B | ¥311.4B | +26.1% |
| Operating Income / Operating Profit | ¥59.5B | ¥18.9B | +214.5% |
| Ordinary Income | ¥59.4B | ¥18.5B | +220.2% |
| Net Income / Net Profit | ¥41.1B | ¥16.8B | +145.2% |
| ROE | 21.6% | 10.4% | - |
For the 9 months ended May 2026 (Q3 cumulative), Sansan reported Revenue of ¥392.6B (YoY +¥81.2B, +26.1%), Operating Income of ¥59.5B (YoY +¥40.6B, +214.5%), Ordinary Income of ¥59.4B (YoY +¥40.9B, +220.2%), and Net Income attributable to owners of the parent of ¥41.1B (YoY +¥24.3B, +145.2%), delivering revenue growth with substantial profit expansion. The core Sansan / Bill One segment led with Revenue of ¥343.3B (+25.2%), while the Eight segment continued high growth at ¥47.9B (+38.5%). Operating margin improved to 15.1% (6.1% in the prior-year period), up 9.0ppt, and net margin improved to 10.5% (5.4% prior), up 5.1ppt — demonstrating clear operating leverage by restraining SG&A growth relative to 26.1% revenue growth. Gross margin improved 1.2ppt to 87.9% (86.7% prior), with scale effects and an upgraded product mix contributing to profitability. EPS rose significantly to ¥32.49 (from ¥13.47, +141.2%).
Revenue maintained high growth at ¥392.6B (+26.1%). By segment, external-customer Revenue for the Sansan / Bill One Business was ¥343.0B (87.4% of total) versus ¥274.0B in the prior-year period, +25.2%; the Eight Business was ¥47.7B (12.2% of total) versus ¥34.5B, +38.5% — both segments achieved double-digit growth. Recurring revenue accumulation from the SaaS model and new customer acquisition supported growth. Deferred revenue (advance receipts) stood at ¥172.4B, a slight decline from ¥174.7B year-earlier, but still providing a large advance base and revenue stability.
Cost of goods sold was ¥47.6B (COGS ratio 12.1%), producing Gross Profit of ¥345.1B (Gross Margin 87.9%), a 1.2ppt improvement YoY. SG&A was controlled at ¥285.6B (SG&A ratio 72.7%), up only 13.7% from ¥251.1B, substantially below revenue growth of +26.1%. As a result, Operating Income expanded sharply to ¥59.5B (Operating margin 15.1%), up from ¥18.9B (+214.5%). Non-operating items were negligible at net -¥0.1B (non-operating income ¥0.7B, non-operating expenses ¥0.8B), leaving Ordinary Income at ¥59.4B (+220.2%). Extraordinary items were net -¥0.3B (extraordinary gains ¥4.6B, mainly gains on sales of investment securities ¥4.2B; extraordinary losses ¥0.8B, mainly loss on disposal of fixed assets), indicating limited one-off impact. Profit before income taxes was ¥59.1B with income taxes of ¥18.0B (effective tax rate 30.4%), resulting in Net Income of ¥41.1B. Stock-based compensation expense declined substantially to ¥0.5B from ¥6.4B in the prior-year period, which reduced non-cash expense and supported margin improvement. In summary, the company achieved high growth and large profit expansion through continued top-line momentum and SG&A control.
The Sansan / Bill One Business recorded Revenue of ¥343.3B (+25.2%) and Operating Income of ¥58.7B (Operating margin 17.1%), with operating margin improving 9.4ppt from ¥21.0B (7.7%) in the prior-year period, driving consolidated profit. Adjusted operating income (before stock-based compensation and amortization of goodwill, etc.) was ¥59.4B, indicating materially improved operating profitability. The Eight Business reported Revenue of ¥47.9B (+38.5%) and Operating Income of ¥2.1B (4.3%), turning from an operating loss of -¥1.0B in the prior-year period to profitability and improving the quality of the earnings portfolio; adjusted operating income was ¥2.5B. Other segments generated Revenue of ¥1.9B and an operating loss of -¥1.3B (prior -¥1.1B), a small ongoing loss. Of consolidated Operating Income of ¥59.5B, Sansan / Bill One accounted for 98.6%, indicating a very high concentration of profit in the core business. Goodwill increases totaling ¥5.3B occurred during the period (¥2.9B in Sansan / Bill One and ¥2.4B in Eight), reflecting ongoing M&A-driven expansion.
Profitability: Operating margin of 15.1% improved 9.0ppt from 6.1% in the prior-year period and materially exceeds the industry median of 8.2% (2025-Q3, IT & Communications). Net margin of 10.5% improved 5.1ppt from 5.4% and exceeds the industry median of 6.0%. ROE of 21.6% indicates efficient use of equity and is well above the industry median of 8.3%. ROA was 8.6% (Net Income ¥41.1B ÷ Total Assets ¥478.1B), significantly above the industry median of 3.9%, highlighting asset efficiency. Gross margin of 87.9% reflects the SaaS model and cost-decreasing effects from scale.
Cash quality: Cash and deposits of ¥299.4B are held abundantly, representing 62.6% of total assets and indicating very ample liquidity. Deferred revenue of ¥172.4B creates a stable cash generation base. Accounts receivable were ¥13.8B (DSO 12.8 days), indicating a very short collection cycle and high working capital efficiency.
Investment efficiency: Total asset turnover of 0.82x exceeds the industry median of 0.67x, indicating good asset utilization. Goodwill of ¥13.9B (7.3% of equity) and intangible assets of ¥23.9B (5.0% of total assets) suggest limited balance-sheet burden from M&A and currently low impairment risk.
Financial soundness: Equity Ratio of 39.9% improved 6.5ppt from 33.4% in the prior-year period. Although below the industry median of 59.2%, considering the structure with large operating liabilities such as deferred revenue, the company's practical financial soundness is high. Interest-bearing debt balance is ¥23.9B (long-term borrowings ¥23.9B, bonds ¥0.9B, bonds maturing within one year ¥0.4B; total ¥24.3B), with Net Debt of -¥275.1B indicating a net cash position. The D/E ratio is 1.51x on a superficial basis, but most liabilities are interest-free operating liabilities like deferred revenue, so financial burden is limited. Current ratio was 144.6%, and quick ratio (cash and deposits ¥299.4B ÷ current liabilities ¥248.9B) was 120.3%, showing solid short-term liquidity.
Direct disclosure of Operating Cash Flow is not provided, but given the large Operating Income of ¥59.5B and the sizable deferred revenue balance of ¥172.4B, operating cash generation is estimated to be very strong. Deferred revenue decreased slightly by ¥2.3B from ¥174.7B year-earlier while Revenue grew +26.1%, suggesting high renewal rates and robust new bookings. Accounts receivable of ¥13.8B (DSO 12.8 days) and a short collection cycle support working capital efficiency; accounts payable of ¥5.0B (DPO 38.3 days) indicates reasonable payment terms. Investments in investment securities decreased to ¥21.9B from ¥37.3B year-earlier, a reduction of ¥15.4B (-41.3%), indicating disposal/monetization of non-core assets. Investing cash flows include capex and M&A-related items; goodwill increased by ¥5.3B, suggesting small-scale acquisitions were made. Financing cash flow shows a reduction in interest-bearing debt from ¥35.7B year-earlier to ¥24.3B, a decrease of ¥11.4B, reflecting repayments. Dividends remained nil, and free cash flow was entirely retained and accumulated in retained earnings, which rose to ¥71.8B (from ¥30.7B, +133.8%). Cash and deposits were ¥299.4B, down ¥12.3B from ¥311.7B year-earlier, but the cash cushion remains substantial and short-term liquidity risk is very low.
Most of current Net Income of ¥41.1B is derived from recurring operating income of ¥59.5B, indicating high quality of earnings. Non-operating items were net -¥0.1B (non-operating income ¥0.7B, non-operating expenses ¥0.8B), representing less than 0.3% of Revenue and having minor impact. Major components of non-operating income were interest and dividend income of ¥0.6B and foreign exchange gains of ¥0.0B, indicating limited non-recurring items. Non-operating expenses included interest expense ¥0.2B, foreign exchange loss ¥0.2B, and investment partnership operating loss ¥0.2B, all small. Extraordinary items were net -¥0.3B, comprising extraordinary gains ¥4.6B (including gains on sales of investment securities ¥4.2B) and extraordinary losses ¥0.8B (loss on disposal of fixed assets, etc.). The gains on sales of investment securities are one-off but account for only 7.1% of Ordinary Income, so they do not materially distort the profit structure. Stock-based compensation was ¥0.5B, down substantially from ¥6.4B in the prior-year period, reducing non-cash expense pressure. Goodwill amortization and intangible asset amortization totaled ¥0.9B, relatively small, indicating limited accounting burden from M&A. The ¥18.3B difference between Ordinary Income ¥59.4B and Net Income ¥41.1B is mainly explained by income taxes ¥18.0B, with no abnormal items outside tax burden. Comprehensive income was ¥42.2B, slightly above Net Income by ¥1.1B, comprised of foreign currency translation adjustments ¥0.4B and valuation differences on available-for-sale securities ¥0.8B. There are no signs of excessive accrual buildup; sustained operating income is driving final profit.
Earnings forecast revisions were made in this quarter, but specific full-year forecast figures were not disclosed in the available data. As of the Q3 cumulative (9 months) point, Revenue ¥392.6B and Operating Income ¥59.5B indicate high progress; if extrapolated on a simple 12-month equal-pace basis, full-year Revenue would be approximately ¥523B and Operating Income approximately ¥79B. Given the continued trend of large YoY profit increases, there is significant upside potential to current full-year forecasts. Dividend guidance remains unchanged at ¥0 for the full year; the no-dividend policy continues.
The company maintained no dividend during the period; Payout Ratio is 0%. Retained earnings increased to ¥71.8B from ¥30.7B (increase of ¥41.1B, +133.8%), strengthening equity via internal reserves. With cash and deposits of ¥299.4B and interest-bearing debt of ¥24.3B, the net cash position (Net Debt -¥275.1B) is substantial, providing ample capacity for dividends from a financial perspective. However, given the company is in a high-growth phase with Revenue growth +26.1% and Eight having just turned profitable with further margin improvement potential, prioritizing growth investment is rational. No share buybacks were disclosed; Total Return Ratio is 0%. If free cash flow stabilizes and Eight’s margins continue to improve, introduction of dividends or strengthened shareholder returns could become feasible in the future.
Industry position (reference — company analysis): The company’s Operating margin of 15.1% exceeds the IT & Communications industry median of 8.2% (2025-Q3, n=104) by 6.9ppt, placing it among the top within the industry. Net margin of 10.5% exceeds the industry median of 6.0% by 4.5ppt, highlighting strong profitability. ROE of 21.6% is well above the industry median of 8.3%, indicating efficient equity use. Revenue growth rate of +26.1% substantially exceeds the industry median of +10.4% (IQR -1.1% to +19.5%), placing the company among the top growth performers. Equity Ratio of 39.9% is below the industry median of 59.2% (IQR 42.5%–72.7%), but given the structure with significant deferred revenue and other operating liabilities, practical financial soundness is high. Current ratio of 144.6% is below the industry median of 215.0%, but the quick ratio of 120.3% and large cash balance of ¥299.4B support safety. Total asset turnover of 0.82x exceeds the industry median of 0.67x, indicating good asset efficiency. EPS growth of +141.2% far exceeds the industry median of +22.0%, demonstrating exceptional profit growth capability. Rule of 40 (Revenue growth 26.1% + Operating margin 15.1% = 41.2%) is well above the industry median of 20.0% (IQR 6%–34%), indicating top-class balance of growth and profitability within the industry.
First, a clear manifestation of operating leverage is notable. With Revenue growth of +26.1% and SG&A growth constrained to +13.7%, Operating margin expanded to 15.1% (up 9.0ppt from 6.1% prior), indicating structural improvement in profitability with scale. Second, Eight’s turn to profitability (Operating Income ¥2.1B vs. -¥1.0B prior) signifies qualitative improvement in the earnings portfolio and suggests further margin upside. Third, the net cash position (Net Debt -¥275.1B), large cash balance (¥299.4B), and deferred revenue (¥172.4B) provide a stable cash base that supports growth investment capacity and strong financial safety. Key monitoring points going forward include the sustainability of high growth in the Sansan / Bill One Business (churn, NRR, ARPU trends), the pace of margin improvement in Eight, SG&A ratio trends (especially personnel and advertising cost control), and deferred revenue balance movements (contract renewal rates and new booking health), which will be critical for mid-term growth and profitability scenarios.
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 the Company from public financial statement data. Investment decisions are your own responsibility; please consult a professional advisor as necessary before making investment decisions.