KURADASHI.Co.,Ltd. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥730M
• Operating Income: ¥-15M
• Net Income: ¥-83M
• EPS: ¥-3.68

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

Kuradashi (58840) reported FY2026 Q1 consolidated results under JGAAP with revenue of ¥730 million, up 11.4% year over year, demonstrating continued top-line momentum. Gross profit was ¥280.736 million, implying a gross margin of 38.5%, which is relatively robust for a commerce/intermediated model and suggests pricing discipline or a favorable sales mix. Operating income remained a loss at ¥-15 million (flat YoY), translating to an operating margin of approximately -2.1%; given higher revenue on a similar operating loss, underlying operating margin likely improved modestly versus the prior-year quarter. Ordinary income was ¥-34 million, indicating additional non-operating expenses or losses beyond the small reported interest expense (¥0.751 million). Net income was ¥-41 million (EPS: ¥-3.68), with a small tax expense (¥1.071 million) despite the loss, likely reflecting non-deductible items or minimum taxes. The DuPont profile shows a net margin of -5.62%, asset turnover of 0.239x, and financial leverage of 2.03x, resulting in a calculated ROE of -2.72%. Liquidity is tight: current assets of ¥1,449.6 million against current liabilities of ¥1,684.0 million yields a current ratio of 86.1% and negative working capital of ¥-234.4 million. The quick ratio of 78.8% points to reliance on receivables/other liquid assets, with inventories modest at ¥122.1 million. Total assets are ¥3,051 million and total equity is ¥1,505 million, implying moderate balance-sheet leverage, although reported subtotals do not fully reconcile across statements and some line items are undisclosed. Cash flow statements and several balance sheet details (e.g., cash and equivalents, debt composition) were not disclosed in the provided data, limiting cash-flow and funding runway analysis. Interest coverage, based on operating loss, is -20.0x, underscoring that near-term break-even is important to mitigate financing risk. No dividend was declared (DPS ¥0), consistent with a loss-making and growth investment phase. Overall, the quarter shows healthy revenue growth and solid gross margins but continued operating losses and constrained short-term liquidity. The key watchpoints are cost discipline to convert gross margin into positive operating income, the ordinary-to-operating income gap, and visibility on cash balances and cash generation. Given data limitations (notably unreported cash flows and some equity ratio/share data), conclusions focus on the disclosed non-zero metrics and calculated ratios.

Profitability Analysis

ROE_decomposition: DuPont shows: Net Profit Margin -5.62% (¥-41m / ¥730m), Asset Turnover 0.239x (¥730m / ¥3,051m), Financial Leverage 2.03x (¥3,051m / ¥1,505m), yielding ROE of -2.72%. The negative ROE is driven primarily by the negative net margin; leverage is moderate and not the key driver. margin_quality: Gross margin of 38.5% (¥280.736m / ¥730m) indicates decent unit economics. Operating margin is approximately -2.1% (¥-15m / ¥730m), reflecting elevated operating costs relative to scale. The spread between gross and operating margins suggests room for opex efficiency (fulfillment, logistics, marketing, and G&A). Note: the provided cost of sales figure (¥374.886m) does not align with the reported gross profit, implying classification differences; we rely on the stated gross profit and calculated margin. operating_leverage: Revenue grew 11.4% YoY with flat operating loss, implying incremental margin improvement and emerging operating leverage. Continued growth at similar gross margin should gradually narrow losses if opex growth is contained. Interest expense is small (¥0.751m), so the path to profitability hinges mainly on operating efficiency rather than financing costs.

Growth Assessment

revenue_sustainability: Top-line growth of 11.4% YoY to ¥730m indicates resilient demand and/or successful customer acquisition. Inventories are modest (¥122.1m), consistent with an inventory-light model; revenue scalability likely depends more on supplier partnerships and platform throughput than on working capital-heavy stock. profit_quality: Ordinary loss (¥-34m) exceeded operating loss (¥-15m), indicating non-operating headwinds beyond interest (¥0.751m). Net margin of -5.62% shows that current growth is not yet translating into bottom-line profitability. The strong gross margin suggests healthy unit economics, but fixed/semi-fixed costs and possibly marketing spend are dampening operating income. outlook: If gross margin is sustained near ~38–39% and revenue continues double-digit growth, operating losses should narrow via operating leverage. Key to the outlook are customer acquisition efficiency (lower CAC), logistics and fulfillment optimization, and monetization of supplier relationships. Absent cash flow disclosure, the pace of investment may be constrained by liquidity, making cost discipline and working capital management critical in the near term.

Financial Health

liquidity: Current assets ¥1,449.6m vs current liabilities ¥1,684.0m yields a current ratio of 0.861x and quick ratio of 0.788x, indicating tight short-term liquidity and reliance on continued turnover or external financing. Working capital stands at ¥-234.4m. solvency: Total assets ¥3,051m and equity ¥1,505m imply assets-to-equity of 2.03x (consistent with DuPont leverage). Debt-to-equity is reported at 1.37x, but the composition of interest-bearing debt is not disclosed here. Interest expense is modest (¥0.751m), suggesting limited financial cost burden currently. capital_structure: With leverage moderate and equity meaningful, solvency risk appears manageable; however, the negative operating earnings and sub-1.0x current ratio elevate near-term refinancing/working capital risk. Note: some totals (e.g., assets vs liabilities plus equity) and the equity ratio are not fully disclosed or reconciled in the provided data.

Cash Flow Quality

earnings_quality: Operating CF, investing CF, and financing CF were not disclosed in the provided data (zeros indicate unreported, not actual zero). As such, accrual vs cash earnings quality cannot be assessed this quarter. FCF_analysis: Free cash flow is not available due to missing OCF and capex disclosure. Depreciation and amortization were also not disclosed, limiting EBITDA and capex normalization analysis. working_capital: Negative working capital (¥-234.4m) and a quick ratio of 0.788x suggest the model may rely on payables financing or rapid cash collection. Without cash flow disclosure, the direction of receivables/payables and inventory turns cannot be assessed.

Dividend Sustainability

payout_ratio_assessment: No dividend (DPS ¥0.00) and reported loss (EPS ¥-3.68) imply no payout capacity from earnings in the quarter. FCF_coverage: FCF coverage cannot be assessed due to undisclosed cash flows; however, given negative net income and tight liquidity, distributions would not be prudent in the near term. policy_outlook: Given ongoing operating losses and growth investment needs, maintaining a no-dividend stance appears consistent with capital preservation and reinvestment priorities until sustained profitability and positive free cash flow are achieved.

Risk Assessment

Business Risks:

• Execution risk in scaling while improving operating margin and controlling customer acquisition and logistics costs.
• Dependence on supplier relationships and availability of discounted/short-dated inventory typical of a food loss reduction platform.
• Competitive intensity in e-commerce and discount retail channels affecting pricing power and marketing spend.
• Sensitivity of gross margin to product mix, promotional activity, and freight/logistics costs.
• Potential seasonality and campaign-driven volatility impacting quarterly results.

Financial Risks:

• Tight liquidity with current ratio at 0.861x and negative working capital of ¥-234.4m.
• Continued operating losses (operating margin ~-2.1%) requiring external financing if cash generation is insufficient.
• Interest rate and refinancing risk if reliance on short-term borrowings increases (debt composition not disclosed).
• Limited visibility on cash position and cash flows due to undisclosed OCF/FCF in the quarter.

Key Concerns:

• Path to break-even: need to translate 38.5% gross margin into positive operating income.
• Ordinary-to-operating loss gap (¥-34m vs ¥-15m) suggests non-operating headwinds that warrant monitoring.
• Sub-1.0x liquidity ratios and negative working capital increase near-term funding risk.

Investment Implications

Key Takeaways:

• Revenue grew 11.4% YoY to ¥730m with a solid 38.5% gross margin, indicating resilient unit economics.
• Operating loss held at ¥-15m despite higher sales, implying improving incremental margins.
• Liquidity remains tight (current ratio 0.861x; quick ratio 0.788x; working capital ¥-234.4m).
• Ordinary loss of ¥-34m highlights non-operating pressure beyond minimal interest expense.
• Data gaps (cash flow, capex, cash balance) limit assessment of funding runway and FCF.

Metrics to Watch:

• Operating margin trajectory (targeting break-even and positive OI).
• Gross margin stability around ~38–39% and mix effects.
• Selling, general and administrative expense ratio vs revenue (opex discipline).
• Ordinary income vs operating income gap (non-operating items).
• Liquidity indicators: cash balance, OCF, working capital movements, and borrowing levels.

Relative Positioning: Within Japan’s growth-stage, mission-driven commerce platforms, Kuradashi shows comparatively strong gross margins but remains loss-making with tighter liquidity than peers that have already achieved operating break-even; balance-sheet leverage appears moderate, but cash flow disclosure is insufficient to benchmark funding runway.

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