Bengo4.com,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥7.76B
• Operating Income: ¥1.08B
• Net Income: ¥339M
• EPS: ¥29.03

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

Benessei Dot Com Co., Ltd. (TSE:6027) delivered solid topline expansion in FY2026 Q2, with revenue up 16.0% YoY to ¥7.764bn, and significantly stronger profitability as operating income nearly doubled (+98.8% YoY) to ¥1.084bn. Gross profit reached ¥5.114bn, implying a high gross margin of 65.9%, consistent with a scalable, software/platform-heavy model. Operating margin expanded to roughly 14.0%, highlighting operating leverage from prior growth investments and cost discipline. Net income rose 93.5% YoY to ¥655m, translating to a net margin of 8.44%. DuPont analysis shows ROE of 10.70%, driven by an 8.44% net margin, asset turnover of 0.659x, and financial leverage of 1.92x. The effective tax rate reported in the calculated metrics as 0.0% appears to be a placeholder; using non-zero figures provided, taxes of ¥226.8m on ordinary income of ¥1.085bn implies an effective tax rate of about 20.9%. Liquidity appears sound with a current ratio of 203% and working capital of ¥3.351bn, supported by modest leverage (liabilities/equity ~0.96x) and strong interest coverage of ~180x. Cash flow conversion is mixed: operating cash flow of ¥322.7m is about 0.49x net income, suggesting working capital outflows or timing effects in the half. Free cash flow is not disclosed (the “0” figure indicates not reported), and investing cash flows are also undisclosed this period, limiting full cash-based assessment. The balance sheet totals present a minor inconsistency (assets ¥11.785bn vs. liabilities + equity ¥11.981bn), likely due to reporting rounding/timing, but the provided leverage metrics remain coherent with assets/equity ≈ 1.92x. Equity ratio was shown as 0% in the data extract but is clearly about 52% (¥6.123bn/¥11.785bn) based on non-zero figures. The company pays no dividend (DPS 0), retaining earnings to fund growth. Overall, the quarter reflects healthy demand, margin expansion, and adequate solvency, with the main watchpoint being lower cash conversion versus earnings and lack of investing cash flow disclosure. Given data gaps (notably cash, share counts, investing cash flows), conclusions rely on the non-zero items presented. The trajectory suggests improving profitability durability, but confirming sustainability will require visibility on customer metrics, working capital movements, and capitalized development spend.

Profitability Analysis

ROE_decomposition: ROE 10.70% = Net margin 8.44% × Asset turnover 0.659× × Financial leverage 1.92×. The uplift in ROE YoY is primarily margin-driven as operating income rose +98.8% on +16.0% revenue growth. margin_quality: Gross margin 65.9% underscores a high-value, subscription/platform mix. Operating margin ~14.0% (¥1.084bn/¥7.764bn) indicates meaningful operating leverage and cost control. Net margin 8.44% includes a roughly 20.9% effective tax burden (based on non-zero tax and ordinary income figures), and minimal interest drag (¥6.0m). operating_leverage: Revenue +16.0% vs. operating income +98.8% implies strong operating leverage, likely from slower opex growth relative to revenue and scale benefits in sales and G&A. EBITDA margin of 18.2% (EBITDA ¥1.412bn) improved with D&A at ¥328.2m not impeding flow-through.

Growth Assessment

revenue_sustainability: Topline expanded 16.0% YoY to ¥7.764bn, consistent with ongoing adoption of legal-tech/platform services. Sustainability hinges on net subscriber additions, ARPU, and churn; these KPIs are not disclosed here. profit_quality: Profit growth outpaced revenue as margins expanded. The mix suggests improved efficiency rather than one-off gains; ordinary income closely tracks operating income, indicating limited non-operating distortions. outlook: With high gross margins and low interest burden, incremental revenue should continue to convert to profit provided acquisition costs remain disciplined. Key to outlook is customer retention and upsell momentum; confirmation requires segment/KPI disclosure.

Financial Health

liquidity: Current assets ¥6.605bn vs. current liabilities ¥3.254bn yields a current ratio of 203% and quick ratio of 203% (no inventories reported), indicating ample near-term liquidity. Cash and equivalents are undisclosed this period. solvency: Total liabilities/equity ≈ 0.96x (¥5.858bn/¥6.123bn). Assets/equity ≈ 1.92x, consistent with modest leverage. Interest coverage ~180x reflects minimal financial risk from debt service. capital_structure: Equity ratio implied at ~52% (using non-zero figures), despite a reported 0% placeholder in the dataset. Financing cash inflow of ¥201.2m suggests minor balance sheet activity (debt or equity), though specifics are not disclosed.

Cash Flow Quality

earnings_quality: OCF/Net income is 0.49x (¥322.7m/¥655.0m), indicating weaker cash conversion for the half, likely due to working capital outflows (e.g., receivables build or timing of payables/tax payments). FCF_analysis: Free cash flow is not disclosed; investing cash flows (including capex and capitalized development) are not reported here, limiting FCF assessment. EBITDA of ¥1.412bn provides capacity to fund investment if cash conversion normalizes. working_capital: Working capital is healthy at ¥3.351bn; however, the period’s lower OCF versus earnings suggests timing effects or growth-related working capital absorption. Monitoring receivables days, payables days, and deferred revenue would clarify.

Dividend Sustainability

payout_ratio_assessment: DPS is undisclosed/zero and payout ratio is shown as 0%; the company appears to retain earnings to support growth. With net income at ¥655m and modest leverage, capacity for future distributions exists but is not a stated priority. FCF_coverage: FCF data not reported; hence dividend coverage cannot be assessed quantitatively. Given no dividend, coverage is not presently applicable. policy_outlook: Given growth investments and platform economics, a retained-earnings policy is consistent. Any future dividend initiation would depend on sustained OCF improvement and visibility on investment needs.

Risk Assessment

Business Risks:

• Customer acquisition and retention risk affecting subscription/transactional revenue.
• Competition from domestic and global legal-tech and SaaS platforms.
• Regulatory and compliance changes in legal services impacting product features and demand.
• Macroeconomic slowdown suppressing client spending and new conversions.
• Product execution risk, including feature roadmap and platform reliability.
• Concentration risk if revenue is reliant on key channels or large customers (not disclosed).

Financial Risks:

• Lower cash conversion (OCF/NI 0.49x) indicating working capital sensitivity.
• Limited disclosure of investing cash flows, obscuring capex and capitalized development trends.
• Potential receivables build or elongated collection cycles in a growth phase.
• Rounding/timing inconsistencies in balance sheet totals.
• Dependence on intangible assets with potential impairment risk.

Key Concerns:

• Sustainability of margin expansion as growth investments resume.
• Visibility on FCF given lack of investing CF disclosure.
• Monitoring of churn/ARPU to validate 16% revenue growth durability.

Investment Implications

Key Takeaways:

• Strong quarter with revenue +16% YoY and operating income +98.8% YoY, demonstrating operating leverage.
• High gross margin (65.9%) supports scalable economics and improving operating margin (~14%).
• ROE at 10.70% is margin-led; leverage is moderate (assets/equity ~1.92x).
• Cash conversion lagged (OCF/NI 0.49x); working capital dynamics warrant scrutiny.
• Liquidity is solid (current ratio 203%, interest coverage ~180x), indicating low near-term financial risk.
• Dividend not paid; capital allocated to growth with modest financing inflow in the period.

Metrics to Watch:

• ARR growth, net retention, churn, and ARPU trends by product.
• OCF/NI ratio, deferred revenue movements, and DSO/working capital turns.
• EBITDA and operating margin trajectory versus sales and R&D expense.
• Investing cash flows: capex and capitalized development to derive true FCF.
• Asset turnover and ROE progression under DuPont.
• Customer acquisition cost (CAC) payback and sales efficiency.

Relative Positioning: Relative to Japanese SaaS/platform peers, the company exhibits attractive gross margins and improving operating profitability with conservative leverage. Cash conversion trails best-in-class peers this quarter, and disclosure gaps on investing cash flows limit FCF comparability.

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