| Metric | Current | Prior | YoY |
|---|---|---|---|
| Revenue | ¥12.6B | ¥6.0B | +108.4% |
| Operating Income | ¥4.0B | ¥-0.7B | +21.2% |
| Ordinary Income | ¥3.9B | ¥-0.7B | +24.9% |
| Net Income | ¥3.0B | ¥-0.2B | +14.2% |
| ROE | 14.7% | -7.3% | - |
Futsupa Corporation's fiscal year 2025 quarterly results demonstrate a substantial business turnaround. Revenue reached 12.6 billion yen, up 108.4% year-over-year from 6.0 billion yen, more than doubling prior year levels. Operating income improved to 4.0 billion yen from a loss of 0.7 billion yen in the prior year, representing a return to profitability with a 21.2% increase on a comparable basis. Ordinary income totaled 3.9 billion yen, up 24.9% from negative 0.7 billion yen, while net income reached 3.0 billion yen compared to a loss of 0.2 billion yen, marking a 14.2% increase. The company achieved a gross profit margin of 65.0% and operating margin of 31.6%, demonstrating strong pricing power and operational leverage. Total assets increased significantly to 23.6 billion yen from 4.8 billion yen, primarily driven by cash accumulation from equity financing. The equity ratio stands at 87.9%, reflecting a highly conservative capital structure.
Revenue increased 6.6 billion yen or 108.4% year-over-year, driven by substantial business expansion. The doubling of revenue indicates either significant market share gains, new customer acquisition, or expansion into new business areas. Gross profit reached 8.2 billion yen with a 65.0% margin, reflecting high-value service or product offerings with strong competitive positioning. The gross profit increase of approximately 5.4 billion yen exceeded the revenue increment's proportional contribution due to operating leverage effects. Selling, general and administrative expenses totaled 4.2 billion yen, representing 33.5% of revenue, which remained well-controlled relative to the revenue growth rate, allowing substantial operating leverage to flow through to the bottom line. Operating income improved by 4.7 billion yen from a loss of 0.7 billion yen to a profit of 4.0 billion yen, demonstrating that fixed cost absorption improved dramatically with scale. Non-operating items showed a net contribution of approximately negative 0.1 billion yen, with ordinary income of 3.9 billion yen slightly below operating income. The gap between ordinary income and net income of 0.9 billion yen represents an effective tax rate of approximately 21.1%, which is within standard corporate tax ranges. No material extraordinary items or impairments were evident in the disclosed data. This represents a revenue up, profit up pattern with the company achieving both top-line growth and bottom-line profitability improvement through operational leverage and scale effects.
[Profitability] ROE reached 14.7% for the period, driven by a net profit margin of 24.2%, total asset turnover of 0.533, and financial leverage of 1.14 times, demonstrating strong equity returns from improved profitability. Operating margin of 31.6% represents substantial improvement from the prior year loss, reflecting effective cost management and operational leverage as revenue scaled. Gross profit margin of 65.0% indicates strong value proposition and pricing power in the company's business model. [Cash Quality] Cash and deposits totaled 19.0 billion yen, representing 80.5% of total assets and providing coverage of 8.3 times current liabilities. Operating cash flow of 2.0 billion yen represented 0.67 times net income, indicating some gap between accrual earnings and cash generation. Free cash flow reached 1.8 billion yen, confirming positive cash generation after capital expenditures of 0.1 billion yen. [Investment Efficiency] Total asset turnover of 0.533 reflects the substantial asset base increase from equity financing. Capital expenditure to depreciation ratio of 1.85 indicates ongoing growth investment. [Financial Health] Equity ratio of 87.9% demonstrates an extremely conservative capital structure with minimal leverage. Current ratio of 1,014.7% and quick ratio of 1,014.7% indicate exceptional short-term liquidity. Interest-bearing debt totaled only 0.5 billion yen with a debt-to-equity ratio of 2.2%, representing minimal financial risk. The debt-to-EBITDA ratio of 0.12 times and interest coverage of approximately 570 times confirm negligible debt service burden.
Operating cash flow of 2.0 billion yen increased 625.6% year-over-year, reflecting the return to profitability, though the operating CF to net income ratio of 0.67 indicates working capital consumption partially offset earnings conversion. The primary working capital driver was accounts receivable, which increased 2.6 billion yen to 3.6 billion yen, extending days sales outstanding to approximately 106 days and signaling collection timing delays relative to revenue recognition. Work-in-process inventory also increased notably, suggesting production cycle or project completion timing effects. Investing cash flow of negative 0.2 billion yen consisted primarily of capital expenditures of 0.1 billion yen for equipment and intangible assets, representing measured investment relative to the business scale. Financing cash flow of 14.3 billion yen was dominated by equity issuance proceeds of 14.5 billion yen, substantially strengthening the balance sheet and providing strategic flexibility. Free cash flow of 1.8 billion yen confirms positive cash generation capacity after necessary capital investments. The cash conversion rate of 0.51 times EBITDA indicates room for improvement in translating earnings into cash, primarily through enhanced working capital management, particularly accounts receivable collection and work-in-process optimization.
Ordinary income of 3.9 billion yen compared to operating income of 4.0 billion yen shows a net non-operating expense contribution of approximately 0.1 billion yen, representing less than 1% of revenue and indicating that core operating performance drives overall profitability. Non-operating items are minimal in scale and do not materially distort the earnings picture. The gap between ordinary income of 3.9 billion yen and net income of 3.0 billion yen reflects income taxes of approximately 0.8 billion yen at an effective rate of 21.1%, which is within standard corporate tax parameters with no indication of unusual tax adjustments. Operating cash flow of 2.0 billion yen representing 0.67 times net income falls below the typical threshold of 0.8 for high-quality cash-backed earnings, indicating that accruals exceeded cash collection during the period. The primary driver of this gap is the 2.6 billion yen increase in accounts receivable, which consumed cash as revenue recognition outpaced collections, extending DSO to 106 days. The cash conversion rate of 0.51 based on EBITDA further highlights that working capital absorption, particularly in receivables and work-in-process, limits near-term cash realization of reported profits. These factors warrant monitoring to ensure earnings quality improves as collections align with revenue recognition in subsequent periods.
Progress against full-year guidance shows revenue of 12.6 billion yen representing 63.0% of the 20.0 billion yen forecast, operating income of 4.0 billion yen representing 82.5% of the 4.8 billion yen forecast, ordinary income of 3.9 billion yen representing 80.2% of the 4.8 billion yen forecast, and net income of 3.0 billion yen representing 86.8% of the 3.5 billion yen forecast. The profit progress rates substantially exceed the revenue progress rate, suggesting either stronger-than-expected profitability in the period reported or an expectation of lower margins in the remaining forecast period. Given that this appears to be quarterly data with annual guidance, the high profit achievement rates relative to revenue suggest the company is tracking ahead of plan on profitability metrics. The operating margin implied by full-year guidance is 24.0%, moderately below the 31.6% achieved in the current period, potentially indicating conservative guidance or expected margin normalization. No guidance revision was disclosed in the available data. The forecasted EPS of 34.62 yen compared to achieved basic EPS of 34.85 yen suggests near-complete achievement of annual earnings expectations in the period reported, though this may reflect reporting period interpretation issues.
The company forecasts zero dividends for both interim and year-end periods, maintaining a no-dividend policy. With net income of 3.0 billion yen and free cash flow of 1.8 billion yen, the company possesses financial capacity to distribute returns to shareholders but has elected to retain all earnings. The payout ratio is therefore 0%, indicating a capital allocation priority toward business reinvestment or balance sheet preservation. Given the company recently completed a substantial equity financing of 14.5 billion yen, management appears focused on funding growth initiatives and strengthening the financial foundation rather than immediate shareholder distributions. The total return ratio including share buybacks is also 0%, as no repurchase activity was disclosed. The absence of dividends despite profitability and strong liquidity warrants clarification of the company's shareholder return philosophy and timeline for potential dividend initiation as the business matures.
Working capital management represents the most quantifiable near-term risk, with accounts receivable of 3.6 billion yen having increased 252.0% and DSO extending to approximately 106 days, indicating collection delays that could impact cash flow quality and create credit risk exposure if revenue recognition significantly precedes cash receipt. Work-in-process inventory also exhibits elevated levels at 91.6% of total inventory, suggesting potential project completion delays or production cycle inefficiencies that could affect cash conversion and asset utilization. Revenue sustainability constitutes a strategic risk, as the 108.4% year-over-year revenue growth may reflect one-time project awards or customer concentration rather than sustainable market expansion, with insufficient disclosure of customer diversification, contract duration, or revenue visibility to assess recurring revenue stability. Equity dilution from the 14.5 billion yen equity issuance substantially increased shares outstanding, potentially creating overhang concerns and requiring the company to demonstrate value creation sufficient to offset per-share dilution, particularly given the current no-dividend policy that provides no near-term return offset to dilution effects.
[Industry Position] (Reference - Proprietary Analysis) The company's operating margin of 31.6% and net profit margin of 24.2% position it at the high end of profitability ranges, though specific industry median comparisons require additional context regarding the company's business model and competitive set. The ROE of 14.7% demonstrates strong equity returns, particularly considering the minimal leverage employed, suggesting superior business economics compared to capital-intensive industry peers. The equity ratio of 87.9% represents an exceptionally conservative capital structure, potentially indicating either early-stage capitalization following equity financing or a deliberate underleveraged strategy that differs from industry capital structure norms. Revenue growth of 108.4% substantially exceeds typical industry growth rates, raising questions of market context, competitive dynamics, and sustainability. Without specific industry peer data in the comparable business model segment, precise benchmark positioning requires caution, though the high-margin, asset-light financial profile suggests positioning in a specialized service, software, or intellectual property-based business model distinct from capital-intensive manufacturing or infrastructure sectors.
The company has achieved a clear inflection from losses to substantial profitability, with operating income turning positive at 4.0 billion yen and margins reaching 31.6%, demonstrating that the business model can generate attractive returns at scale and validating the operational leverage thesis as revenue exceeds breakeven thresholds. The quality of earnings warrants close monitoring, as the operating CF to net income ratio of 0.67 and cash conversion rate of 0.51 indicate that reported profits are not yet fully converting to cash, primarily due to accounts receivable extending to 106 days and elevated work-in-process levels, requiring improved working capital management to confirm earnings sustainability. The recent 14.5 billion yen equity financing has created a fortress balance sheet with 19.0 billion yen in cash and minimal debt, providing substantial strategic flexibility for growth investments, though the absence of dividends and lack of disclosed capital allocation priorities leaves uncertainty regarding optimal use of capital and timeline for shareholder value distribution.
This report was automatically generated by AI analyzing XBRL earnings data as an earnings analysis tool. This is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled from publicly available earnings data. Please make investment decisions at your own responsibility and consult professionals as needed.