Speee,Inc. FY2025 Q4 Earnings Report

Financial Highlights

• Net Sales: ¥16.43B
• Operating Income: ¥-685M
• Net Income: ¥-950M
• EPS: ¥-84.88

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Speee reported FY2025 Q4 (full-year) consolidated results under JGAAP with revenue of ¥16.435 billion, up 4.5% YoY, but remained loss-making at the operating and net levels. Gross profit was ¥13.058 billion, implying an exceptionally high gross margin of 79.5%, consistent with a high-value-added service/platform business model. Despite the robust margin profile, operating income was a loss of ¥685 million (operating margin -4.2%), representing a deterioration of 36.1% YoY, indicating negative operating leverage as SG&A growth outpaced revenue gains. Ordinary loss was ¥661 million and net loss was ¥950 million (net margin -5.8%); the flat YoY change in net loss suggests limited bottom-line progress. DuPont diagnostics indicate ROE of -13.0% driven primarily by the negative net margin, with asset turnover of 1.109x and financial leverage of 2.03x at moderate levels. Balance sheet strength appears reasonable: total assets ¥14.813 billion, equity ¥7.289 billion, implying an equity ratio around 49.2% by calculation (despite a reported 0.0% which likely reflects non-disclosure). Liquidity is solid, with current assets of ¥8.367 billion versus current liabilities of ¥3.450 billion, yielding a current ratio of 242.5%. Operating cash flow was negative at ¥751 million and free cash flow was -¥902 million due to ¥151 million investing outflows, signaling continued cash burn. Financing inflows of ¥5.31 billion materially bolstered liquidity, implying reliance on external capital to fund growth and losses. Interest expense remains low at ¥8.6 million, and leverage (total liabilities/equity) of ~0.64x appears conservative. The OCF/Net Income ratio of 0.79 suggests losses are partly supported by non-cash or timing effects, but operating cash generation remains negative. Effective tax analysis is not meaningful given the loss position and reported tax item; the headline effective tax rate metric is not informative in this context. Dividend data are not available; with negative earnings and FCF, near-term dividend capacity is limited. Several data points (cash and equivalents, equity ratio per disclosure, share-related metrics) are not reported, which constrains precision on per-share and liquidity runway analysis. Overall, the company retains healthy liquidity and moderate leverage but needs to restore operating profitability and positive OCF to reduce dependence on external financing.

Profitability Analysis

ROE_decomposition: Reported ROE is -13.03%, driven by Net Profit Margin of -5.78%, Asset Turnover of 1.109x, and Financial Leverage of 2.03x (ROE ≈ -5.78% × 1.109 × 2.03). The primary drag is profitability (negative margin); efficiency and leverage are within typical ranges for an asset-light, service-oriented business. margin_quality: Gross margin is very high at 79.5% (Gross Profit ¥13.06bn on Revenue ¥16.44bn), indicating strong unit economics and value-add. However, operating margin is -4.2% (Operating Loss ¥0.685bn), pointing to SG&A intensity (growth investments or elevated fixed costs) overwhelming gross profit. Net margin of -5.78% is further pressured by tax and non-operating items. operating_leverage: Revenue grew 4.5% YoY while operating income declined 36.1% (deeper loss), signaling negative operating leverage in the period. To flip leverage positive, management must slow fixed-cost growth and improve efficiency in customer acquisition and overhead. D&A of ¥115m is modest; the swing is largely SG&A-driven rather than depreciation-heavy.

Growth Assessment

revenue_sustainability: Top-line growth of 4.5% YoY is modest. The high gross margin suggests a recurring or high-value revenue mix, but growth deceleration risk exists if customer acquisition costs rise or if market conditions soften. profit_quality: Despite robust gross margin, operating losses indicate current scale is insufficient to absorb fixed costs. Ordinary results (-¥661m) align with operating losses, and minimal interest expense implies limited financial distortion. Tax expense in a loss year suggests non-deductible items or valuation allowance effects; not indicative of core profit quality. outlook: Near-term focus is likely on cost discipline and monetization efficiency to restore operating margin. With financing inflows of ¥5.31bn, management has runway to invest, but investors will look for reacceleration of revenue and stabilization of OPEX ratios to achieve break-even OCF. Sustainability hinges on balancing growth initiatives with operating efficiency.

Financial Health

liquidity: Current assets ¥8.367bn vs current liabilities ¥3.450bn imply a current ratio of 242.5% and strong working capital of ¥4.917bn. Cash and equivalents were not disclosed, limiting visibility on immediate cash runway; however, substantial recent financing supports short-term liquidity. solvency: Total liabilities ¥4.699bn vs equity ¥7.289bn produce liabilities-to-equity of ~0.64x. On a calculated basis, the equity ratio is approximately 49.2% (equity/assets), indicating a solid capital base. capital_structure: Interest expense is low at ¥8.6m, implying limited financial debt or low-cost borrowings. The negative interest coverage reflects operating losses rather than high leverage risk. The capital structure appears conservative post-financing, but continued losses could gradually erode equity if unaddressed.

Cash Flow Quality

earnings_quality: OCF/Net Income of 0.79 indicates that reported losses partially translate into cash outflows, with some support from non-cash items (e.g., D&A ¥115m) and working capital timing. However, the ratio below 1.0 during a loss period still reflects negative operating cash generation. FCF_analysis: OCF of -¥751m combined with investing CF of -¥151m yields FCF of -¥902m, consistent with cash burn to fund operations and modest investment. Sustained negative FCF requires ongoing financing or a pivot to profitability. working_capital: Inventories are not disclosed (likely not material to the model). Current ratios suggest headroom, but specific receivables/payables dynamics are unknown. Monitoring DSO/DPO and deferred revenue (if applicable) will be key to understanding OCF recovery.

Dividend Sustainability

payout_ratio_assessment: Dividend and payout ratio data are not disclosed in a way that allows precise calculation. Given negative net income, any payout would be unsustainable from earnings. FCF_coverage: With FCF at -¥902m, dividends would not be covered by internally generated cash in the period. policy_outlook: In light of losses and negative FCF, capital allocation likely prioritizes reinvestment and balance sheet strength over shareholder distributions in the near term. Confirmation of formal dividend policy is needed.

Risk Assessment

Business Risks:

• Execution risk in monetizing high-margin services while scaling profitably
• Customer concentration and churn risk typical in digital services/marketing businesses
• Market cyclicality affecting client budgets and project volumes
• Regulatory and privacy policy changes impacting data-driven offerings
• Competitive intensity and pricing pressure from larger platforms and peers
• Dependence on continued product innovation to sustain gross margins

Financial Risks:

• Sustained operating losses and negative FCF requiring external financing
• Potential working capital volatility affecting OCF trajectory
• Dilution risk if additional equity financing is needed
• Limited visibility on cash balances due to non-disclosure
• Tax expense volatility in loss periods (valuation allowance, non-deductibles)

Key Concerns:

• Negative operating leverage despite revenue growth
• Reliance on financing inflows (¥5.31bn) to support operations
• Path and timeline to restore positive OCF
• Cost structure flexibility and SG&A productivity
• Data limitations on cash and per-share metrics

Investment Implications

Key Takeaways:

• High gross margin (79.5%) confirms strong unit economics but not yet translating to operating profitability
• Operating margin -4.2% and ordinary loss -¥661m underscore need for OPEX control
• ROE -13.0% primarily driven by negative net margin; efficiency and leverage are adequate
• Liquidity position appears strong (current ratio 242.5%) following ¥5.31bn financing
• FCF -¥902m indicates ongoing cash burn and execution priority on OCF improvement
• Moderate leverage (~0.64x liabilities/equity) reduces solvency risk near term
• Data gaps (cash balance, equity ratio disclosure, shares) limit precision of per-share and runway analysis

Metrics to Watch:

• Operating margin and SG&A-to-sales ratio
• Quarterly OCF and FCF trajectory
• Revenue growth reacceleration and retention/cohort quality (if disclosed)
• Cash and equivalents balance and net cash/debt
• Gross margin stability
• Working capital metrics (DSO, DPO, deferred revenue) and OCF/NI ratio
• Further financing activities and dilution indicators

Relative Positioning: Versus domestic growth/IT services peers, Speee exhibits superior gross margins but weaker operating profitability and cash generation; balance sheet leverage is moderate with solid calculated equity ratio, and recent financing provides liquidity, but sustained improvement in operating efficiency is needed to converge toward peer-level profitability.

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
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis