ANYCOLOR Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥26.33B
• Operating Income: ¥11.07B
• Net Income: ¥7.72B
• EPS: ¥126.41

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

ANYCOLOR (50320) reported strong FY2026 Q2単体 results with revenue of 263.26億円, up 51.8% YoY, demonstrating continued scale benefits in its content/IP monetization model. Operating income rose 63.8% YoY to 110.72億円, indicating positive operating leverage as fixed costs were diluted over rapid top-line growth. Net income was 77.22億円, implying a high net margin of 29.3% and a calculated ROE of 27.9% via DuPont, supported by modest leverage (assets/equity 1.27x) and solid asset turnover (0.75x). Liquidity is robust with current assets of 256.22億円 and current liabilities of 71.75億円, yielding a 357% current ratio and substantial working capital of 184.47億円. The company holds 158.18億円 in cash and deposits, comfortably exceeding total liabilities, implying a net cash position. Operating cash flow was 38.98億円, equating to an OCF/Net Income conversion of 0.50x; while positive, this is below ideal and warrants monitoring for earnings quality and working capital dynamics. Capex was disciplined at 17.32億円, suggesting an asset-light model; implied free cash flow (OCF − Capex) is roughly 21.66億円 despite heavy growth. Financing cash outflow of 74.15億円 was driven primarily by share repurchases (75.11億円), signaling an active capital return stance and contributing to per-share value accretion alongside retained earnings of 186.96億円. Book value per share is estimated at 453.74円, consistent with reported equity and share count. The calculated operating margin (approx. 42.1%) is strong, though XBRL did not provide an official figure. There are notable internal inconsistencies in reported layers of profit (e.g., ordinary income at 110.81億円 versus profit before tax at 67.51億円 with a tax charge of 20.69億円 while net income is 77.22億円), which likely reflect classification/timing effects or extraordinary items in JGAAP disclosure rather than economic weakness; analysis therefore emphasizes DuPont and cash metrics. The net margin and ROE indicate robust profitability and capital efficiency relative to a light balance sheet. Equity increased to 277.30億円 with low leverage (D/E by total liabilities ~0.26x), limiting financial risk. Dividend data are unreported, but the stated payout ratio is 51.4%, implying a DPS near 65円 against basic EPS of 126.41円, subject to verification. Overall, the quarter reflects healthy growth, strong margins, and shareholder returns, offset by moderate OCF conversion and disclosure gaps. Key sensitivities include platform monetization conditions, creator/IP performance, event cycles, and overseas expansion execution. Data limitations (unreported SG&A details, D&A, interest expense, and some cash flow components) constrain granularity, but the headline profitability and balance sheet strength are clear.

Profitability Analysis

ROE_decomposition: DuPont indicates ROE of 27.9% = Net margin 29.3% × Asset turnover 0.750 × Financial leverage 1.27x. Net margin is anchored by net income of 77.22億円 on revenue of 263.26億円; asset turnover reflects efficient use of a 351.05億円 asset base; leverage is modest (assets/equity ≈ 351.05/277.30). margin_quality: Gross profit is reported at 83.74億円 versus cost of sales 89.66億円, which is not arithmetically consistent with revenue (classification differences likely). Using operating income and revenue, the implied operating margin is ~42.1% (110.72/263.26), signaling strong contribution margins and disciplined SG&A (16.13億円 reported). Net margin at 29.3% remains elevated even after taxes and non-operating items, consistent with a high-mix digital/IP model. operating_leverage: YoY revenue growth of +51.8% alongside operating income growth of +63.8% demonstrates positive operating leverage; fixed-cost absorption and favorable mix likely drove outperformance. SG&A of 16.13億円 appears well controlled relative to the scale of revenue, supporting incremental margins.

Growth Assessment

revenue_sustainability: Top-line growth of +51.8% YoY suggests strong demand across content, live, and digital monetization channels; sustainability depends on creator/IP pipeline, audience engagement, and platform algorithms. profit_quality: High operating and net margins indicate a scalable model; however, the OCF/NI of 0.50x indicates earnings-to-cash conversion lagging, potentially due to receivables growth (AR at 59.22億円) and event timing. outlook: With ample cash (158.18億円) and low leverage, the company is positioned to invest in content, overseas expansion, and technology. Near-term growth should track engagement and monetization intensity; key watchpoints are platform policy shifts, seasonality (events/merch), and overseas execution.

Financial Health

liquidity: Current ratio 357.1% (256.22/71.75) and quick ratio equivalent indicate strong short-term coverage. Working capital stands at 184.47億円, and cash of 158.18億円 exceeds total liabilities, implying significant liquidity headroom. solvency: Total liabilities/equity ≈ 0.26x, with no disclosed interest-bearing debt, indicating low financial risk. Equity of 277.30億円 supports ongoing investment and shareholder returns. capital_structure: Asset-light structure (noncurrent assets 35.21億円; intangibles 1.72億円) and net cash profile provide flexibility. Share repurchases (75.11億円) signal confidence but should be balanced against working capital needs given OCF conversion.

Cash Flow Quality

earnings_quality: OCF/Net Income is 0.50x (38.98/77.22), below ideal, suggesting working capital build or timing effects (e.g., receivables collection, event settlement). Given strong reported margins, monitoring cash realization is important. FCF_analysis: Implied FCF ≈ 21.66億円 (OCF 38.98 − Capex 17.32). Despite aggressive growth and buybacks, the business generated positive FCF in the period, consistent with an asset-light model. working_capital: Accounts receivable at 59.22億円 is meaningful relative to revenue; days sales outstanding likely elevated (not directly calculable). No inventory reported; payables at 24.82億円 support vendor financing. Cash conversion should improve with stabilized collections.

Dividend Sustainability

payout_ratio_assessment: The calculated payout ratio is 51.4%. With EPS at 126.41円, this implies DPS around 65円, though DPS itself is unreported. A ~50% payout appears serviceable given high margins, but sustainability depends on cash conversion improving from 0.50x OCF/NI. FCF_coverage: Using implied FCF of 21.66億円 and absent reported total dividends, formal coverage cannot be confirmed. Given positive FCF and large cash reserves, near-term coverage appears adequate, but sustained buybacks plus dividends could pressure cash if OCF lags. policy_outlook: The company executed sizable buybacks (75.11億円), indicating a shareholder return orientation. Future policy balance between reinvestment, buybacks, and dividends will likely depend on growth visibility and OCF normalization.

Risk Assessment

Business Risks:

• Platform dependency (e.g., distribution and monetization policies of major video platforms).
• Content/creator concentration risk and talent management challenges.
• Reputational risk from incidents involving talents or IP.
• Event execution and merchandise demand volatility.
• International expansion execution and localization risks.
• Regulatory and compliance risks related to online content and live events.
• FX exposure on overseas revenue if expanded.

Financial Risks:

• OCF/NI at 0.50x indicates weaker cash conversion versus earnings.
• Large buybacks reduce cash buffers if sustained without matching OCF.
• Receivables concentration/collection timing could elevate working capital needs.
• Disclosure gaps (D&A, interest expense, SG&A breakdown) limit analytical precision.
• Profit line inconsistencies (ordinary income vs. PBT vs. NI) could reflect one-off or classification impacts.

Key Concerns:

• Sustaining high margins while scaling globally.
• Improving cash conversion to align with earnings growth.
• Managing platform policy shifts and algorithm changes.
• Balancing shareholder returns with investment needs.

Investment Implications

Key Takeaways:

• Strong top-line growth (+51.8% YoY) and operating leverage (+63.8% YoY OI).
• High profitability with net margin 29.3% and ROE 27.9%.
• Robust liquidity (current ratio 357%) and net cash position.
• OCF conversion at 0.50x is the primary area to monitor.
• Active capital returns via 75.11億円 buybacks; DPS unreported but payout ratio ~51%.
• Asset-light model with low fixed investment needs (capex 17.32億円).

Metrics to Watch:

• OCF/Net Income and trends in accounts receivable turnover.
• Operating margin trajectory and SG&A efficiency.
• Revenue mix (domestic vs. overseas, live/events vs. digital/merch).
• Platform monetization terms and revenue share changes.
• Share count changes from buybacks and EPS accretion.
• Extraordinary items and reconciliation between ordinary income, PBT, and NI.

Relative Positioning: Within the VTuber/virtual IP peer set, ANYCOLOR appears to maintain above-peer profitability and capital efficiency, supported by an asset-light balance sheet and strong shareholder returns, while exhibiting weaker cash conversion than ideal and higher sensitivity to platform dynamics.

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