Moi Corporation FY2026 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥4.95B
• Operating Income: ¥265M
• Net Income: ¥134M
• EPS: ¥9.65

Income Statement

Balance Sheet

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

Moi Inc. (TSE:50310) reported FY2026 Q3 single-entity results under JGAAP showing modest top-line growth and sharp improvement in operating profit, but bottom-line contraction due to below-the-line items. Revenue was 49.54 (100M JPY), up 0.5% YoY, indicating broadly stable demand conditions. Gross profit reached 25.06, translating to a robust gross margin of 50.6%, consistent with a high-margin digital/service model. SG&A was 23.22, or 46.9% of sales, allowing operating income to rise 44.5% YoY to 2.65; the operating margin improved to approximately 5.3%. Non-operating items were a small net positive (income 0.19 vs expenses 0.02), lifting ordinary income to 3.06 (ordinary margin ~6.2%). Profit before tax fell to 2.01, materially below ordinary income, implying roughly 1.05 in special losses under JGAAP; details are unreported. Net income was 1.34, down 13.1% YoY, as the extraordinary loss offset operating gains and the effective tax rate settled around 22.7%. DuPont analysis shows a net margin of 2.7%, asset turnover of 1.137x, and financial leverage of 2.17x, yielding ROE of 6.7% (in line with the reported calculation). Liquidity appears solid with current assets of 37.67 (cash and deposits 29.79) against current liabilities of 22.68, resulting in a reported current ratio of 166.1% and working capital of 15.00. The capital structure shows total liabilities of 22.68 and equity of 20.06, implying liabilities-to-equity of 1.13x and an analytically estimated equity ratio near 46% (though XBRL did not disclose this ratio). Retained earnings remain negative at -1.23, indicating an accumulated deficit despite current-year profitability. Operating cash flow, capex, and free cash flow are unreported, limiting earnings quality assessment. Dividend information is also unreported, and with retained earnings negative, dividend policy visibility is low. Overall, operational momentum and cost discipline are improving, but the quarter was weighed by special losses and incomplete disclosures constrain a full assessment. Zeros in the dataset reflect unreported items rather than true zeros, and conclusions are based strictly on available non-zero data.

Profitability Analysis

ROE_decomposition: ROE 6.7% = Net margin 2.7% × Asset turnover 1.137 × Financial leverage 2.17x. Net margin reflects 2.65 operating income, +0.17 net non-operating gains, ~1.05 special losses, and a ~22.7% tax rate. margin_quality: - Gross margin: 50.6% (25.06/49.54), strong for a platform/service model. - Operating margin: ~5.3% (2.65/49.54), up materially YoY given operating income +44.5% on +0.5% sales. - Ordinary margin: ~6.2% (3.06/49.54) supported by small non-operating gains. - Net margin: 2.7%, compressed by special losses between ordinary income and PBT. operating_leverage: With revenue up 0.5% YoY and operating income up 44.5% YoY, fixed-cost leverage and SG&A discipline drove margin expansion. SG&A at 23.22 equates to 46.9% of sales; even modest revenue growth can materially improve operating profit if this ratio is maintained or reduced. Cost of sales of 24.22 (48.9% of sales) suggests some scalability on direct costs.

Growth Assessment

revenue_sustainability: Revenue growth of +0.5% YoY is modest, implying a stable but not accelerating topline. With high gross margin, growth sustainability likely depends on user activity, ARPU, and monetization features; these operating KPIs are not disclosed here. profit_quality: Operating profit growth (+44.5% YoY) stems from cost control rather than strong sales expansion, indicating improved efficiency. However, net income declined (-13.1% YoY) due to special losses (~1.05), which dilutes profit quality until the nature and recurrence are clarified. outlook: If SG&A discipline persists and special losses do not recur, ordinary earnings power (ordinary margin ~6.2%) suggests scope for net margin normalization toward operating/ordinary levels. Sustained growth requires reacceleration in revenue; with high cash (29.79) there is capacity to invest in growth, but capex/R&D are unreported.

Financial Health

liquidity: Current assets 37.67 vs current liabilities 22.68 yield a current ratio of 166.1% and working capital of 15.00. Cash and deposits of 29.79 cover 131% of total liabilities, indicating ample liquidity. Quick ratio is reported equal to current ratio due to unreported inventories; actual quick liquidity may differ. solvency: Total liabilities 22.68 and equity 20.06 imply liabilities-to-equity of 1.13x. Financial leverage (assets/equity) is 2.17x. Interest-bearing debt is unreported, so interest burden and true debt solvency cannot be assessed. Analytically, equity ratio (equity/assets) approximates 46.1% (20.06/43.57), though not disclosed in XBRL. capital_structure: Equity is composed primarily of capital surplus 19.45 and capital stock 0.50, offset by retained earnings of -1.23, suggesting past losses or investments funded by equity issuance (likely post-listing). No noncurrent liabilities are disclosed; structure may be predominantly trade and other payables (accounts payable 8.54) with limited visibility on loans.

Cash Flow Quality

earnings_quality: OCF is unreported, preventing reconciliation from accrual earnings to cash. The gap between ordinary income (3.06) and PBT (2.01) indicates special losses; without cash flow data, cash vs non-cash nature is unknown. FCF_analysis: Capex and investing CF are unreported, so free cash flow cannot be calculated. High cash on hand (29.79) provides cushion but does not substitute for recurring FCF generation evidence. working_capital: Accounts receivable of 7.66 and accounts payable of 8.54 indicate a payables-funded working capital profile; inventory is shown as 0.00 but is an unreported item and should not be assumed zero. Reported working capital is 15.00, supported largely by cash.

Dividend Sustainability

payout_ratio_assessment: Dividend per share, total dividends, and payout ratio are unreported. Retained earnings are negative (-1.23), which may constrain dividend capacity under typical Japanese corporate practice until deficits are reversed. FCF_coverage: Not assessable due to unreported OCF and capex. Cash balance is strong, but sustainable dividends should be covered by recurring FCF rather than cash drawdowns. policy_outlook: With accumulated deficits and focus on profitability improvement, priority likely remains on reinvestment and rebuilding retained earnings. Absence of DPS disclosure suggests limited visibility on near-term distributions.

Risk Assessment

Business Risks:

• Sluggish revenue growth (+0.5% YoY) could pressure operating scalability if user/ARPU growth stalls.
• Platform competition and creator economy cyclicality could impact monetization and churn.
• App store fee structures and policy changes can affect take-rates and margins.
• Regulatory and data privacy/compliance risks inherent to online platforms.
• Technology, uptime, and cybersecurity risks affecting service reliability and reputation.

Financial Risks:

• Extraordinary losses (~1.05 between ordinary income and PBT) with limited disclosure raise earnings volatility risk.
• Cash flow opacity: OCF, capex, and FCF unreported, constraining assessment of earnings-to-cash conversion.
• Negative retained earnings (-1.23) may limit flexibility for dividends and signal historical losses.
• Debt structure unknown due to unreported interest-bearing borrowings; interest coverage cannot be assessed.

Key Concerns:

• Nature, magnitude, and recurrence risk of special losses driving the gap from ordinary income to PBT.
• Sustainability of SG&A discipline versus potential future growth investments.
• Visibility on cash generation and capital needs in the absence of cash flow disclosures.

Investment Implications

Key Takeaways:

• Operational efficiency improved materially: operating income +44.5% YoY on +0.5% sales; operating margin ~5.3%.
• Gross margin remains high at 50.6%, supporting scalability if topline accelerates.
• Bottom line weakened (-13.1% YoY) due to special losses; underlying ordinary earnings are stronger than reported net.
• Liquidity is strong (cash 29.79; current ratio 166.1%), providing buffer for volatility and investment.
• Capital structure is equity-heavy with accumulated deficits (-1.23), indicating a rebuild phase.
• Limited disclosure on cash flows and dividends constrains assessment of earnings quality and shareholder returns.

Metrics to Watch:

• Extraordinary gains/losses and reconciliation from ordinary income to PBT and net income.
• SG&A-to-sales ratio trend and operating margin trajectory.
• Revenue growth reacceleration: user metrics, ARPU, and monetization take-rates (when disclosed).
• OCF and FCF once reported; working capital movements (receivables/payables).
• Equity ratio and any emergence of interest-bearing debt; interest coverage if debt appears.
• Resolution of negative retained earnings and any updates to dividend policy.

Relative Positioning: Compared to typical Japanese small-cap digital/platform peers, Moi exhibits high gross margins and improving operating leverage but lags on revenue growth momentum and disclosure depth (notably cash flows and dividends). Balance sheet liquidity is comparatively strong, while the presence of special losses and accumulated deficits places it in a rebuilding cohort rather than a fully mature, distribution-oriented peer set.

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