Speee (4499) FY2026 Q1 Earnings Report

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Executive Summary

Although revenue was essentially flat, the most important point in this earnings report is the significant deterioration in profitability and expansion of losses. Revenue was ¥38.8B (+0.1% year on year), essentially unchanged, while Operating Income was ¥-2.5B (¥-0.0B in the previous year), Ordinary Income was ¥-2.5B (YoY -90.4%), and Net Income was ¥-3.2B (¥-0.8B in the previous year), with losses expanding. The decline in gross profit margin, combined with an increase in SG&A expenses, caused the Operating Income margin to deteriorate by approximately 6.2pt from the previous year.

Factors Driving Changes in Results

【Revenue】Consolidated revenue was ¥38.8B, essentially flat at +0.1% year on year. Legacy Industry DX increased revenue to ¥26.5B (68.4% composition ratio, +2.1% year on year), while DX Consulting declined to ¥12.3B (31.6% composition ratio, -4.0% year on year), with the two businesses effectively offsetting each other. Financial DX recorded no external revenue.

【Profit and Loss】Gross profit was ¥28.9B, and the gross profit margin of 74.5% declined 4.9pt from 79.4% in the previous year. SG&A expenses increased to ¥31.3B (+1.8% year on year), exceeding the pace of revenue growth, and the SG&A ratio rose from 79.5% to 80.8%. As a result, Operating Income turned negative at ¥-2.5B, while Ordinary Income also resulted in a loss of ¥-2.5B. Net Income was ¥-3.2B, and the recognition of ¥0.7B in income taxes and other taxes against the loss before taxes contributed to the larger loss. By segment, the primary factors were the decline in DX Consulting’s profit margin from 39.2% to 32.1%, a decrease of 7.1pt, and the expansion of Financial DX’s loss from ¥2.7B to ¥4.1B. In conclusion, despite revenue remaining almost flat, profits deteriorated—a decline in profit without a decline in revenue, or effectively a pattern of higher revenue and lower profit.

Segment Analysis

Legacy Industry DX recorded revenue of ¥26.5B (+2.1% year on year) and segment profit of ¥2.9B (11.1% margin, compared with 12.7% in the previous year); although revenue increased, the profit margin declined. DX Consulting generated revenue of ¥12.3B (-4.0% year on year) and segment profit of ¥3.9B (32.1% margin, compared with 39.2% in the previous year). Although it remains the largest profit-contributing segment, both revenue and profit declined. Financial DX recorded no external revenue, while its segment loss expanded to ¥4.1B (¥2.7B in the previous year), making it the central factor behind the deterioration in consolidated results. Corporate expenses (adjustments) were ¥5.3B, down 6.5% year on year, but this was insufficient to offset the expansion of the Financial DX loss.

Key Financial Indicators

【Profitability】The Operating Income margin was -6.3% (compared with -0.1% in the previous year), while the Net Income margin was -8.3%; both deteriorated significantly from the previous year. ROE (annualized) was -18.4%, primarily due to the net loss. 【Cash Quality】Cash and deposits were ¥87.1B, representing 62.9% of total assets, while accounts receivable declined to ¥29.3B from ¥30.8B in the previous year. 【Investment Efficiency】Total asset turnover was approximately 1.12x, indicating that asset efficiency alone was insufficient to absorb the losses. 【Financial Soundness】The Equity Ratio was maintained at 50.3% (49.2% in the previous year), while the current ratio was approximately 316%, indicating substantial short-term payment capacity. Meanwhile, total borrowings were approximately ¥41.0B, including ¥28.6B in long-term borrowings, and attention is required regarding interest payment burdens while Operating Losses continue.

Cash Flow Analysis

Although detailed disclosure of the cash flow statement is not available, funding trends can be inferred from changes in the balance sheet. Cash and deposits were ¥87.1B, down ¥6.9B from ¥94.0B in the previous year, with the recognition of the net loss and repayment of borrowings considered the primary factors. Long-term borrowings declined from ¥31.3B in the previous year (including amounts due for repayment within one year), indicating that repayments through financing activities are progressing. Current assets of ¥121.6B substantially exceeded current liabilities of ¥38.4B, maintaining substantial working capital of ¥83.2B. Even as Operating Losses continue, the level of cash on hand does not indicate any significant near-term funding concerns.

Quality of Earnings

The current-period loss warrants qualitative attention because it was not caused by extraordinary gains or losses but by a decline in recurring earning power beginning at the operating level. Non-operating income was ¥0.0B, while non-operating expenses were ¥0.1B (including ¥0.1B in interest expense), both small in scale; therefore, the impact from Operating Income to Ordinary Income was limited. Accordingly, the Ordinary Loss of ¥2.5B largely reflects the Operating Loss of ¥2.5B directly, indicating that the primary causes were structural factors—namely, the decline in gross profit margin and increase in SG&A expenses—rather than a temporary downturn. Income taxes and other taxes of ¥0.7B were recognized against a loss before taxes of ¥2.5B, resulting in the Net Loss exceeding the loss before taxes, likely due to factors such as the reversal of deferred tax assets. This point requires monitoring from an effective tax rate perspective. Comprehensive income was ¥-3.2B, broadly in line with Net Income, with no divergence attributable to other comprehensive income items.

Earnings Forecast and Guidance

The full-year company forecasts are revenue of ¥170.0B (+3.4% year on year), an Operating Loss of ¥17.0B, and a Net Loss of ¥20.8B. Q1 revenue of ¥38.8B represents a full-year progress rate of 22.8%, slightly below the simple 25% benchmark but not materially divergent. Meanwhile, the Q1 Operating Loss of ¥2.5B represents only 14.4% of the full-year forecast loss of ¥17.0B, indicating relatively light progress. This suggests that the company’s plan incorporates larger losses or investment burdens in the second half, making the trajectory of Financial DX losses and corporate expenses in upcoming quarters key to achieving the plan. No revision to the earnings forecast was disclosed this time.

Shareholder Returns

The per-share dividend forecast is ¥0 for both the current period and the full year, resulting in an effectively 0% Payout Ratio. This is consistent with a capital allocation policy that prioritizes retained earnings and cash liquidity while Net Losses continue. No share repurchases have been confirmed, and no shareholder returns are currently being conducted.

Risk Factors

1. Expansion of losses in the Financial DX Business: The segment loss expanded by +49.3% from ¥2.7B in the previous year to ¥4.1B, and delayed monetization of this business, which has recorded no external revenue, poses a risk of prolonged consolidated losses.

2. Deterioration in the profitability of the core segment: DX Consulting, the largest contributor to profit, recorded a revenue decline of -4.0%, while its profit margin fell to 32.1% (39.2% in the previous year), a decrease of 7.1pt. If the decline in high-margin projects continues, the segment’s ability to support consolidated profit may weaken.

3. Interest payment burden and declining capital efficiency: Due to the Operating Loss, the company is unable to cover interest expense with Operating Income, while retained earnings declined from ¥14.5B in the previous year to ¥11.3B. If losses continue, this could lead to gradual erosion of equity.

Industry Benchmark (Reference; Company Analysis)

Industry Benchmark (it_telecom)

Profitability and Returns

Profitability is significantly below the industry median, placing the company at a low level within the industry.

Growth and Capital Efficiency

Revenue growth is also significantly below the industry median, indicating that the company is underperforming the industry average in terms of top-line growth.

※Source: Company analysis

Key Points from the Earnings Report

1. While revenue was essentially flat, the combination of a decline in gross profit margin and an increase in SG&A expenses caused the Operating Income margin to deteriorate by approximately 6.2pt from the previous year. This is noteworthy as a structural change in the cost structure.

2. DX Consulting, the largest profit-contributing segment, experienced both a revenue decline and a lower profit margin, while Financial DX losses expanded simultaneously. The resulting change in the earnings balance across the business portfolio will be a key focus going forward.

3. The full-year plan shows a revenue progress rate of 22.8%, compared with a loss progress rate of only 14.4%; trends in expenses and investments in the second half will be decisive for achieving the plan.

Theoretical Share Price (Reference Value)

Sensitivity: 147円〜154円 at Cost of Equity ±1%, and 143円〜156円 at ω±0.1.

Notes:

• Because forecast ROE is below the Cost of Equity, the theoretical value will be below Book Value per Share.
• Net assets as of the quarter-end are used (there is a timing difference from the full-year forecast).
• Because net assets include non-controlling interests, the theoretical value may be calculated somewhat higher.

（Calculation model: Residual Income Model (Ohlson-type, explicit 5-year fade) / Interest rate reference month: 2026-08 / Mechanically calculated value based solely on publicly disclosed data; this is not a forecast of the market share price or a recommendation of any specific investment action, and does not predict or guarantee the future share price）

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This report is an earnings analysis document automatically generated by AI based on XBRL earnings summary data. It does not recommend investment in any specific security. The industry benchmarks are reference information compiled by the company based on publicly disclosed earnings data. You should make investment decisions at your own responsibility and, as necessary, consult with a professional.

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