Rebase,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥1.00B
• Operating Income: ¥66M
• Net Income: ¥46M
• EPS: ¥9.50

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

Rebase posted FY2026 Q2 single-entity results with revenue of ¥1.0bn, up a solid 15.3% YoY, indicating continued topline momentum. Despite this, profitability weakened sharply: operating income fell to ¥66m, down 69.0% YoY, and net income declined 65.9% to ¥46m, signaling significant operating deleverage. DuPont metrics show ROE at 3.67%, driven by a modest net margin of 4.60%, asset turnover of 0.56x, and low leverage (financial leverage 1.42x). The business exhibits a structurally high gross margin of 83.8%, consistent with an asset-light, software-like or marketplace-like model. Operating margin compressed to 6.6%, and EBITDA margin was 8.4%, pointing to elevated SG&A spend and/or cost inflation that outpaced revenue growth. Ordinary income (¥67m) slightly exceeded operating income, suggesting small non-operating gains or financial income, while reported interest expense is shown as zero (likely undisclosed rather than truly zero). Cash generation was strong relative to earnings: operating cash flow reached ¥171.9m, yielding an OCF/Net Income ratio of 3.74, which supports the quality of earnings. Liquidity appears robust with current assets of ¥1.72bn versus current liabilities of ¥0.578bn, giving a current ratio of 298% and working capital of ¥1.142bn. The balance sheet is equity-heavy: with total equity of ¥1.255bn against assets of ¥1.785bn, the implied equity ratio is about 70% (the 0.0% equity ratio in the dataset indicates nondisclosure). Leverage is low with total liabilities to equity at 0.46x, limiting financial risk and interest burden. Dividend distribution remains conservative; DPS is zero and the payout ratio is 0%, consistent with reinvestment during a scaling phase and margin rebuild. Notably, several items are undisclosed (cash and equivalents, investing cash flows, inventories, share count, equity ratio), which constrains precision on FCF and per-share analytics; EPS of ¥9.50 implies roughly 4.8m average shares, but this is an inference. There is an internal inconsistency between the reported cost of sales and gross profit; we rely on the gross margin given (83.8%) for analysis. The reported income tax amount appears high relative to net income, yet the effective tax rate metric is listed as 0.0%; this likely reflects disclosure gaps or classification differences under JGAAP single-entity reporting. Overall, the company demonstrates healthy revenue growth and cash generation but faces near-term profitability pressure due to higher operating expenses, making margin trajectory and cost discipline the key swing factors for the outlook.

Profitability Analysis

roe_decomposition: ROE 3.67% = Net margin 4.60% × Asset turnover 0.56x × Financial leverage 1.42x. The modest ROE primarily reflects thin net profitability rather than asset inefficiency or high leverage. margin_quality: Gross margin is high at 83.8%, indicative of an asset-light model and pricing power; however, operating margin is only 6.6% as SG&A intensity has risen. EBITDA margin of 8.4% suggests limited non-cash add-backs beyond ¥18.35m depreciation/amortization, so the margin compression is largely cash operating costs. operating_leverage: Revenue grew 15.3% YoY while operating income fell 69.0% YoY, evidencing negative operating leverage from a step-up in fixed costs (e.g., personnel, marketing) or mix effects. Ordinary income slightly above operating income (¥67m vs. ¥66m) indicates minimal non-operating support.

Growth Assessment

revenue_sustainability: Topline growth of 15.3% YoY is healthy and consistent with early-to-mid expansion in a high-margin model. Absent segment disclosures, sustainability appears supported by the high gross margin structure and likely recurring or repeat demand. profit_quality: Net margin at 4.60% is below the structural potential implied by the 83.8% gross margin, highlighting elevated OPEX. The OCF/NI ratio of 3.74 suggests profits are cash-backed, reducing concerns of accrual-driven earnings. outlook: Short-term focus is on cost normalization and efficiency to restore operating leverage. If growth persists at low-to-mid teens while SG&A growth moderates, margins can recover. Watch for stabilization in operating income and improvement in EBITDA margin over the next quarters.

Financial Health

liquidity: Current assets ¥1,720m vs. current liabilities ¥578m yields a current ratio of 297.8% and quick ratio effectively the same given no disclosed inventories. Working capital is ¥1,142m, indicating ample cushion for operations. solvency: Total liabilities ¥582m vs. equity ¥1,255m gives debt-to-equity of 0.46x and an implied equity ratio of ~70% (equity/assets), despite the reported 0.0% equity ratio field being undisclosed. Financial risk from leverage is low. capital_structure: Leverage is conservative with financial leverage at 1.42x (assets/equity). Interest expense is shown as zero (likely undisclosed), and ordinary income proximity to operating income suggests minimal financing drag.

Cash Flow Quality

earnings_quality: OCF of ¥171.9m vs. net income of ¥46.0m yields OCF/NI of 3.74, indicating strong cash conversion and limited reliance on accruals. Depreciation/amortization is modest at ¥18.35m, consistent with low capital intensity. fcf_analysis: Investing cash flow and free cash flow are not disclosed (shown as zero). Therefore, FCF cannot be assessed directly; however, strong OCF and low capital intensity historically would typically support positive FCF in similar models. working_capital: With current assets far exceeding current liabilities and no inventories disclosed, the model likely relies on receivables and possibly deferred revenue dynamics. The positive OCF suggests favorable working capital movements or efficient collections.

Dividend Sustainability

payout_ratio_assessment: DPS is ¥0.00 and the payout ratio is 0%, reflecting retention of earnings. Given the low ROE and margin pressure, retaining cash to fund growth and margin recovery is consistent with sustaining financial flexibility. fcf_coverage: FCF is undisclosed, so coverage cannot be computed. Strong OCF and a low-leverage balance sheet imply capacity to support dividends in principle, but management appears to prioritize reinvestment. policy_outlook: With margins under pressure and growth investments ongoing, a conservative dividend stance is likely to persist until profitability normalizes and FCF visibility improves.

Risk Assessment

Business Risks:

• Operating margin compression from rising personnel and customer acquisition costs
• Potential slowdown in demand that would exacerbate negative operating leverage
• Customer concentration or churn risk typical of software/marketplace models
• Execution risk in scaling while maintaining unit economics
• Competitive intensity leading to pricing pressure

Financial Risks:

• Limited disclosure on cash and investing cash flows constrains FCF visibility
• Tax expense volatility and classification differences under JGAAP single-entity reporting
• Dependence on working capital efficiency for cash generation
• Potential exposure to non-operating items despite low leverage

Key Concerns:

• Sharp YoY decline in operating and net income despite double-digit revenue growth
• Inconsistency between reported cost of sales and gross profit; reliance on the disclosed gross margin metric
• Undisclosed cash balance and investing cash flows hinder assessment of liquidity buffers and capex needs
• Low ROE (3.67%) relative to the asset-light profile

Investment Implications

Key Takeaways:

• Topline growth remains healthy at +15.3% YoY
• Profitability deteriorated materially (OP -69% YoY), indicating negative operating leverage
• High gross margin (83.8%) underscores attractive unit economics if SG&A is managed
• Cash conversion is strong (OCF/NI 3.74), supporting earnings quality
• Balance sheet is equity-heavy with low leverage (D/E 0.46x), mitigating solvency risk

Metrics to Watch:

• SG&A-to-sales ratio and quarterly trend in operating margin and EBITDA margin
• Operating cash flow margin and working capital movements (receivables, deferred revenue)
• Revenue growth trajectory vs. customer acquisition costs and churn/retention (if disclosed)
• Ordinary income vs. operating income to monitor non-operating effects
• Effective tax rate normalization and any one-off tax items

Relative Positioning: Relative to typical TSE-listed asset-light peers, Rebase combines strong gross margins and low leverage but currently lags on operating margin and ROE due to elevated opex; successful cost discipline could narrow this gap.

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