Cuorips Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥192M
• Operating Income: ¥-495M
• Net Income: ¥-485M
• EPS: ¥-59.16

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend 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

Verdict: FY2026 Q2 was a cash-burn heavy growth quarter with strong gross margin but deeply negative operating profitability, underpinned by ample liquidity and minimal leverage. Revenue rose to 1.92 (+236.7% YoY), lifting gross profit to 1.15 and delivering a robust gross margin of 60.0%. However, SG&A of 6.11 outweighed gross profit, resulting in operating loss of -4.95 and ordinary/net loss of -4.83. Operating margin was approximately -258%, and net margin was -252%, highlighting the early-stage scale mismatch between costs and revenue. Non-operating income contributed a modest 0.12, mostly interest income (0.08), consistent with a large net cash position. Cash and deposits stood at 38.45 against total liabilities of 1.98, supporting a very strong liquidity profile. The current ratio was 4,225%, and D/E was 0.04x, indicating negligible financial risk in the near term. Operating cash flow was -8.52, meaning cash burn exceeded the accounting loss in absolute terms despite the reported OCF/NI ratio of 1.76x (note: both are negative, so the ratio is less meaningful). With capital expenditures reported at only -0.10 and financing inflows of 1.74, cash runway appears comfortable assuming similar burn rates. ROE was -9.2%, driven by an extremely negative net profit margin, low asset turnover (0.035), and minimal leverage (1.04x). ROIC of -35.1% points to very weak capital efficiency at this stage, typical for pre/proto-commercial biotech-like profiles. Due to limited YoY disclosures beyond revenue, margin expansion/compression in basis points cannot be quantified. Forward-looking, the company must convert pipeline and commercialization efforts into recurring revenue to dilute fixed costs, while maintaining cash discipline to extend runway. Near-term catalysts likely include customer wins, partnerships, grants, or milestone payments, which could materially alter the profit mix given the small revenue base. Until operating leverage turns positive, losses will likely persist; however, the balance sheet provides time to execute.

Profitability Analysis

ROE decomposition (DuPont): ROE (-9.2%) = Net Profit Margin (-251.6%) × Asset Turnover (0.035) × Financial Leverage (1.04x). The dominant driver is the deeply negative net margin, as asset turnover is structurally low (early-stage scale), and leverage is minimal by design. Business reason: SG&A (6.11) significantly exceeds gross profit (1.15), reflecting upfront personnel, development, and commercial build-out costs ahead of revenue scaling; limited non-operating support (0.12) cannot offset the core operating loss. Sustainability: The negative margin is not sustainable long-term but is characteristic of a company investing ahead of growth; improvement hinges on revenue scaling and SG&A discipline. Asset turnover should improve with revenue growth on a relatively fixed asset base; leverage is unlikely to rise soon given large cash balances and a conservative posture. Concerning trends: SG&A growth appears to exceed revenue scale (absolute SG&A ~3.2x revenue), which suppresses operating leverage; without more granular SG&A breakdown or YoY SG&A, we infer fixed cost intensity remains high.

Growth Assessment

Revenue growth of +236.7% YoY to 1.92 is strong from a small base, implying early commercial traction or project-based revenues. Gross margin at 60.0% suggests a value-added offering with pricing power or favorable mix. However, operating losses (-4.95) indicate revenue is not yet at breakeven scale. Non-operating income (0.12, mostly interest) is not a core growth driver. With no segment or product disclosure, sustainability of the revenue surge is unclear; small base effects and potential milestone/one-off elements could inflate growth rates. Key to outlook: confirming repeatability (backlog, recurring contracts, installed base growth) and expanding customer count. Near-term, operating leverage can improve if revenue growth continues while SG&A growth moderates; otherwise, losses will persist. Given cash on hand, the company has time (estimated multi-year runway) to pursue growth without immediate external financing, barring acceleration in burn.

Financial Health

Liquidity is very strong: Current Assets 48.66 vs Current Liabilities 1.15 yields a current ratio of 4,225% and quick ratio of 4,203%. There is no warning for Current Ratio (<1.0) or D/E (>2.0); D/E is 0.04x. Working capital is 47.51, and cash alone (38.45) comfortably covers total liabilities (1.98), indicating no maturity mismatch risk. Interest-bearing debt is unreported, but the low D/E and the presence of interest income (0.08) suggest net cash. Noncurrent liabilities are modest at 0.83. No off-balance sheet obligations are disclosed in the provided data. Equity is strong at 52.56 despite accumulated losses (retained earnings -32.30), supported by substantial capital surplus (66.46).

Cash Flow Quality

OCF was -8.52 vs Net Income -4.83; OCF/NI is shown as 1.76x but is not economically meaningful because both are negative. The key takeaway is cash burn exceeded the accounting loss, often reflecting working capital outflows and non-cash items (D&A 0.41 is modest). With CapEx of -0.10, cash burn appears primarily operating in nature. FCF cannot be precisely assessed due to unreported investing CF, but operating-driven burn suggests reliance on existing cash and occasional financing (FinCF 1.74 this period). No clear signs of working capital manipulation: receivables are unreported/zero, inventories are small (0.26), and payables are unreported; cash balance changes likely mirror operating burn. Coverage for dividends and capex is adequate from cash, but not from operating inflows (negative).

Dividend Sustainability

Dividends are unreported and likely absent given persistent losses and negative OCF. Payout ratio is not calculable and would be unsustainable on negative earnings. Even though the balance sheet is cash-rich, policy prudence suggests retaining cash to fund operations and growth until profitability is visible. FCF coverage cannot be assessed precisely, but negative OCF implies insufficient internal funding for distributions. Expect focus on reinvestment and runway preservation rather than dividends.

Risk Assessment

Business Risks:

• Revenue scalability risk from a very small base; growth may be episodic or project-based.
• Execution risk in converting pipeline/technology into recurring commercial contracts.
• Gross margin sustainability risk if mix shifts or pricing pressure emerges.
• Dependence on key customers or milestones (not disclosed) could cause volatility.

Financial Risks:

• Cash burn risk: OCF -8.52 for the period; continued losses could shorten runway.
• Potential future dilution if burn accelerates and external financing is needed.
• Capital efficiency risk: ROIC -35.1% indicates value dilution if not improved.
• Metric visibility risk: many items unreported (interest expense, debt detail, investing CF), hindering full assessment.

Key Concerns:

• Operating losses large relative to revenue (operating margin ~ -258%).
• SG&A significantly exceeds gross profit, suppressing operating leverage.
• Limited disclosure of SG&A and non-operating expense breakdown limits diagnostics.
• Reliance on interest income signals returns driven by cash reserves, not operations.

Investment Implications

Key Takeaways:

• Strong top-line growth (+236.7% YoY) from a low base with 60% gross margin.
• Deep operating losses (-4.95) reflect scale-up costs ahead of revenue.
• Balance sheet strength (cash 38.45; total liabilities 1.98) provides multi-period runway.
• Negative ROE (-9.2%) and ROIC (-35.1%) underscore urgent need for operating leverage.
• Cash burn is primarily operating; CapEx is modest (-0.10).

Metrics to Watch:

• Quarterly revenue trajectory and repeatability (backlog, recurring vs one-off).
• SG&A trend vs revenue growth to gauge operating leverage.
• Gross margin stability and mix effects.
• Operating cash flow burn rate and cash runway (cash/quarterly OCF).
• Any financing activities (equity raises, grants, partnerships, milestone inflows).
• Disclosure of receivables/payables to monitor working capital dynamics.

Relative Positioning: Compared to typical early-stage, science-driven small caps, the company is more cash-secure (very low leverage, high liquidity) but exhibits weaker capital efficiency and profitability, with upside contingent on scaling revenues and achieving operating leverage.

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