yutori,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥6.26B
• Operating Income: ¥421M
• Net Income: ¥-17M
• EPS: ¥16.04

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

For FY2026 Q2 (consolidated, JGAAP), 株式会社yutori delivered hyper-growth with revenue of ¥6,260m (+265.2% YoY) and sharp operating income expansion to ¥421m (+1,187.3% YoY), evidencing strong operating leverage as fixed costs were diluted by scale. EBITDA was ¥437m with a 7.0% margin, and interest expense remained low at ¥9.1m, yielding robust EBIT interest coverage of 46.3x. Despite solid operating results, net income was only ¥75m (+27.4% YoY), implying material non-operating or extraordinary charges and/or minority interest effects between ordinary profit (¥393m) and bottom line. The reported gross profit margin is 22.0%; however, cost of sales (¥981m) and gross profit (¥1,379m) are internally inconsistent with revenue, suggesting the cost of sales line is incomplete or mapped differently; we rely on the provided gross margin metric but flag the inconsistency. Liquidity appears adequate with a current ratio of 154.5% and working capital of ¥1,365.7m, supporting near-term obligations amid rapid growth. Balance sheet leverage (Debt-to-Equity 1.92x) is moderate for a growth company; the implied equity ratio from assets and equity is roughly 26.8% despite a reported 0.0% metric that is likely an undisclosed placeholder. Cash flow quality is a concern in the near term: operating cash flow was negative at -¥135.9m, indicating investment in working capital or cash conversion frictions during scale-up. Financing cash inflow of ¥1,595.3m funded expansion and cash needs; however, cash and equivalents are undisclosed, limiting net cash assessment. DuPont analysis shows a low net margin (1.20%), moderate asset turnover (0.722x), and leverage (3.72x), producing ROE of 3.22%—profitability at the equity level remains modest due to bottom-line compression. The effective tax line provided (¥33.6m) does not reconcile to a 0.0% tax rate; we infer the main driver of the low net margin is below-the-line losses rather than taxes. Dividend remains suspended (DPS ¥0), consistent with reinvestment in growth and cash conservation given negative OCF. Data limitations are notable: inventories, cash, investing cash flows, and share counts are undisclosed, and some reported metrics conflict; conclusions should be interpreted with caution. Overall, the quarter highlights strong top-line momentum and operating leverage, offset by weak cash conversion and extraordinary items weighing on net income. Key monitoring points are cash conversion (OCF), composition of financing inflows, the nature of below-the-line losses, and normalization of margins as scale progresses.

Profitability Analysis

ROE_decomposition: Net margin 1.20% × asset turnover 0.722 × financial leverage 3.72 = ROE 3.22% (matches reported). The principal drag is the low net margin despite strong operating profit, indicating significant below-the-line impacts. margin_quality: Operating margin ~6.7% (operating income ¥421m / revenue ¥6,260m). EBITDA margin 7.0%. Reported gross margin 22.0%, but cost of sales and gross profit figures are internally inconsistent with revenue, suggesting COGS is incomplete or mapped differently; we use the provided 22.0% GPM as indicative but not definitive. The gap from operating to net profit reflects material non-operating/extraordinary effects rather than tax (income tax ¥33.6m). operating_leverage: Revenue +265.2% YoY versus operating income +1,187.3% YoY indicates substantial operating leverage from fixed-cost dilution and scale efficiencies. Interest expense rose modestly to ¥9.1m, but interest coverage is strong at ~46x, indicating leverage has not constrained operating performance.

Growth Assessment

revenue_sustainability: Top-line growth of +265.2% YoY is exceptional, likely driven by category expansion and/or channel growth. Sustainability will depend on repeat purchase behavior, customer acquisition efficiency, and capacity to scale fulfillment without eroding margins. profit_quality: Operating profit scaled faster than sales, but net income increased only +27.4% YoY due to below-the-line items, implying current profit quality is skewed toward operating level rather than bottom line. EBITDA/Operating income alignment (¥437m vs. ¥421m) suggests limited non-cash D&A drag. outlook: With adequate liquidity and financing support, the company can continue scaling operations. A key near-term focus is converting revenue growth into consistent OCF and narrowing the gap between ordinary and net income by reducing extraordinary losses or one-offs.

Financial Health

liquidity: Current assets ¥3,873.1m vs. current liabilities ¥2,507.4m yields a current ratio of 154.5% and positive working capital of ¥1,365.7m. Quick ratio equals current ratio due to undisclosed inventories; thus actual quick ratio may be lower once inventories are recognized. solvency: Total liabilities ¥4,470.3m and equity ¥2,328.0m imply Debt-to-Equity 1.92x and assets/equity leverage of ~3.72x. Implied equity ratio is ~26.8% (¥2,328m/¥8,671m) despite a reported 0.0% equity ratio that appears to be an undisclosed placeholder. capital_structure: Interest expense is modest at ¥9.1m relative to EBITDA, indicating manageable financial risk today. The large financing inflow (¥1,595.3m) suggests recent debt and/or equity funding; absent cash balance disclosure, net leverage cannot be determined.

Cash Flow Quality

earnings_quality: OCF/Net income is -1.81x (OCF -¥135.9m vs. NI ¥75.0m), indicating weak cash conversion, likely from working capital build (receivables, inventory, or payables timing) amid rapid growth. D&A is small (¥16.1m), so earnings are not materially inflated by non-cash items. FCF_analysis: Free cash flow is not reliably computable because investing cash flow is undisclosed (reported as 0, which likely indicates not reported). As such, the FCF figure provided as 0 should not be interpreted as actual zero. working_capital: Working capital is positive at ¥1,365.7m, but the negative OCF hints at increases in receivables and/or inventory and possibly lower payable support. Inventories are undisclosed; once available, inventory turns and cash conversion cycle should be analyzed to confirm normalization.

Dividend Sustainability

payout_ratio_assessment: DPS is ¥0 and payout ratio 0.0%. Given negative OCF and ongoing scale-up, withholding dividends aligns with liquidity preservation and reinvestment needs. FCF_coverage: FCF coverage cannot be assessed due to undisclosed investing cash flows; the reported 0.00x is not meaningful. Current cash generation does not support distributions. policy_outlook: Assuming management prioritizes growth and cash conversion, dividends are unlikely near term until OCF turns sustainably positive and extraordinary items abate.

Risk Assessment

Business Risks:

• Execution risk in scaling operations while maintaining gross and operating margins
• Customer acquisition cost inflation and potential slowdown in cohort retention
• Supply chain and logistics constraints that could pressure fulfillment costs
• Brand concentration and fashion demand cyclicality affecting sell-through
• Channel mix shifts (e-commerce vs. wholesale/marketplaces) impacting margins

Financial Risks:

• Negative operating cash flow amid rapid growth requiring continued external financing
• Balance sheet leverage (Debt-to-Equity 1.92x) increasing sensitivity to downturns
• Below-the-line or extraordinary losses compressing net income and ROE
• Data gaps on cash and inventories limit visibility into liquidity buffers
• Potential working capital volatility (receivables and inventory builds) affecting cash

Key Concerns:

• Large discrepancy between ordinary income (¥393m) and net income (¥75m)
• OCF/Net income of -1.81x highlights weak cash conversion
• Inconsistent COGS and gross profit disclosures versus revenue
• Reliance on ¥1,595m financing inflow to fund operations and growth
• Undisclosed cash balance and investing cash flows hinder FCF assessment

Investment Implications

Key Takeaways:

• Exceptional top-line growth (+265% YoY) with strong operating leverage (+1,187% YoY operating income)
• Bottom-line profitability muted by non-operating/extraordinary items, yielding low net margin (1.20%) and ROE (3.22%)
• Adequate near-term liquidity (current ratio 154.5%) and manageable interest burden (46.3x coverage)
• Negative operating cash flow indicates working capital strain during scale-up
• Leverage moderate (D/E 1.92x) but reliance on financing inflows is elevated
• Data limitations (cash, inventory, investing CF) constrain precision of FCF and liquidity analysis

Metrics to Watch:

• Operating cash flow margin and OCF/NI conversion ratio
• Gross margin trend and reconciliation once COGS is fully disclosed
• Ordinary-to-net income bridge (extraordinary items, minority interests)
• Net debt and cash balance disclosure; composition of the ¥1,595m financing inflow
• Working capital metrics: receivable days, inventory days, payable days (once disclosed)
• ROE trajectory via net margin normalization and asset turnover

Relative Positioning: Versus domestic D2C/apparel and digital-native peers on the TSE Growth segment, yutori exhibits superior revenue growth and operating leverage, but lower cash conversion and a larger gap between operating and net income; balance sheet leverage is moderate, and liquidity is adequate but dependent on external funding.

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