IBJ,Inc. FY2025 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥14.95B
• Operating Income: ¥2.98B
• Net Income: ¥1.39B
• EPS: ¥49.14

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

IBJ (6071) reported solid FY2025 Q3 year‑to‑date performance under JGAAP on a consolidated basis, with revenue of ¥14,946mn, up 14.2% YoY. Operating income rose 49.8% YoY to ¥2,979mn, evidencing clear operating leverage as fixed costs were spread over higher volumes. Net income increased 41.2% YoY to ¥1,859mn, with a YoY net margin expansion to 12.44%. Gross profit was ¥12,182.9mn, implying an exceptionally high gross margin of 81.5%, consistent with a platform/service-heavy business mix. Operating margin improved to 19.9% (¥2,979mn/¥14,946mn), up materially from an implied ~15.2% in the prior period. Ordinary income of ¥2,981mn was in line with operating income, as non-operating items and interest expense (¥15.1mn) were small. The DuPont breakdown shows ROE of 17.39% built on a net margin of 12.44%, asset turnover of 0.681x, and financial leverage of 2.05x, indicating balanced profitability and capital efficiency. Liquidity appears comfortable with current assets of ¥8,918.6mn versus current liabilities of ¥5,221.0mn, for a current ratio of 170.8% and a quick ratio of 170.6%. Total assets were ¥21,943mn and total equity ¥10,689mn, implying an equity ratio of roughly 48.7% (despite a reported 0.0% in the summary metrics). Interest coverage is robust at 197.6x, reflecting low financial burden. The implied effective tax rate, based on net income and income tax expense (¥648.8mn), is approximately 25.9% using pretax income inferred as net income plus income tax, which is broadly consistent with domestic statutory ranges. Cash flow figures (OCF/ICF/FCF) were not disclosed in the XBRL snapshot provided; therefore, free cash flow and OCF-based quality ratios cannot be assessed from this dataset. Dividend per share and payout ratio were also shown as zero in this feed; policy commentary thus requires caution. Overall, the company demonstrates strong profitability momentum, improved operating efficiency, and a moderate leverage profile. The scalability of IBJ’s matchmaking platform and related services is visible in the widening operating margin and high gross margin. Working capital is positive at ¥3,697.6mn, supporting near-term liquidity. While top-line growth is healthy and flow-through to profits is strong, the absence of cash flow disclosure warrants monitoring for earnings sustainability. Key watchpoints include user growth and ARPU in core matchmaking businesses, SG&A discipline, and any changes in deferred revenue or collections that might affect cash conversion. Given the data limitations (notably the unreported cash flow items and share-related per-share metrics), conclusions rely primarily on the P/L and balance sheet provided.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 12.44%
• asset_turnover: 0.681
• financial_leverage: 2.05
• calculated_ROE: 17.39%
• commentary: ROE of 17.39% is driven by a healthy net margin and moderate asset turnover, with balanced leverage. Improvements in operating margin underpin the margin component of ROE. margin_quality:
• gross_margin: 81.5%
• operating_margin: 19.9%
• ordinary_margin: 20.0%
• net_margin: 12.44%
• observations: ['High gross margin reflects a predominantly service/platform model with low direct cost of sales.', 'Operating margin expanded by an implied ~470bps YoY (to 19.9%), indicating strong cost control and scale benefits.', 'Net margin improved by roughly ~240bps YoY (from ~10.1% to 12.44%) on operating leverage and modest non-operating drag.'] operating_leverage:
• revenue_growth_YoY: 14.2%
• operating_income_growth_YoY: 49.8%
• implication: Operating income growth far outpaced revenue growth, evidencing positive operating leverage and improving fixed cost absorption.
• interest_coverage: 197.6x (Operating income ¥2,979mn / Interest expense ¥15.1mn)

Growth Assessment

revenue_sustainability: Top-line growth of 14.2% YoY suggests healthy demand in core matchmaking/platform and related services. The high gross margin indicates pricing power and/or favorable mix, but sustaining >10% growth will likely depend on continuing user acquisition, engagement, and partner agency network expansion. profit_quality: Operating income rose 49.8% YoY, with operating margin lifting to 19.9%. Ordinary income aligns closely with operating income, suggesting limited reliance on non-operating gains. Implied effective tax rate around 26% is within normal range, supporting earnings quality. outlook: Absent cash flow data, outlook is inferred from P/L momentum and balance sheet. Continued scale benefits and disciplined SG&A could support further margin resilience, while competitive intensity and marketing needs may influence growth trajectory. Monitoring user metrics (paid members, ARPU, churn) and agency network health remains key.

Financial Health

liquidity:

• current_ratio: 170.8%
• quick_ratio: 170.6%
• working_capital: ¥3,697.6mn
• commentary: Strong liquidity with minimal inventories (¥10.4mn) and ample current asset coverage of short-term obligations. solvency:
• total_assets: ¥21,943mn
• total_liabilities: ¥9,495.3mn
• total_equity: ¥10,689mn
• equity_ratio_implied: ≈48.7%
• debt_to_equity_ratio_reported: 0.89x (note: likely total liabilities/equity, interest-bearing debt not separately disclosed)
• interest_burden: Low; interest expense ¥15.1mn with 197.6x coverage
• commentary: Balance sheet shows moderate leverage and strong coverage, consistent with a service business with limited capital intensity. capital_structure: Leverage is modest with A/E of 2.05x. Absence of detailed interest-bearing debt data limits granular assessment of net debt and maturity profile.

Cash Flow Quality

earnings_quality: With OCF undisclosed in this dataset, accrual-to-cash conversion cannot be quantified. Profitability relies mainly on recurring service revenues, which typically support good cash conversion if receivables and deferred revenue are well managed. FCF_analysis: Free cash flow not reported; capital intensity appears structurally low given business model, but actual capex and software development outlays are not provided here. working_capital: Positive working capital of ¥3,697.6mn supports operations. Inventories are negligible, suggesting limited operational cash tied up in stock. Monitoring receivables, payables, and any deferred revenue balances is important for cash conversion.

Dividend Sustainability

payout_ratio_assessment: Dividend per share and payout ratio are shown as 0.00 in this feed; given instruction that zeros may indicate non-disclosure, no conclusion can be drawn from these placeholders. FCF_coverage: FCF not available; coverage cannot be assessed. policy_outlook: Without confirmed DPS/FCF and historical policy details in this dataset, we defer judgment. If current profitability persists and cash conversion is healthy, capacity for shareholder returns would be supported; however, reinvestment needs and acquisition strategy (if any) would influence policy.

Risk Assessment

Business Risks:

• Competitive intensity in online/offline matchmaking and lifestyle services (domestic platforms and global dating apps).
• User acquisition and marketing efficiency risk (rising CAC impacting margins).
• Demographic headwinds and consumer sentiment affecting discretionary spend on matchmaking services.
• Dependence on partner agency network quality and retention.
• Service quality, data privacy, and compliance risks (personal data handling, matchmaking outcomes).
• Technology/platform reliability and cybersecurity risks.
• Brand reputation risk from service incidents or safety concerns at events.

Financial Risks:

• Potential volatility in cash conversion if receivables or deferred revenue shift unfavorably (OCF not disclosed here).
• Exposure to macro downturns that could pressure renewal rates and ARPU, impacting operating leverage.
• Limited visibility on interest-bearing debt structure and maturities (only interest expense disclosed).
• Tax rate variability due to changes in deductions or local tax regimes.

Key Concerns:

• Absence of reported cash flow data limits validation of earnings quality.
• Sustainability of margin expansion amid possible increases in marketing and content/technology spend.
• Competitive responses from larger platforms potentially compressing pricing or increasing promotion costs.

Investment Implications

Key Takeaways:

• Strong topline momentum (+14.2% YoY) with outsized operating income growth (+49.8% YoY) indicates positive operating leverage.
• High gross margin (81.5%) and improved operating margin (19.9%) highlight attractive unit economics.
• ROE of 17.39% is supported by solid margins and moderate leverage (A/E 2.05x).
• Liquidity is ample (current ratio 170.8%; working capital ¥3,697.6mn) and interest burden is low (197.6x coverage).
• Cash flow metrics are not disclosed in this dataset; monitoring OCF and FCF is critical to corroborate earnings quality.

Metrics to Watch:

• Paid membership growth, ARPU, and churn in core matchmaking services.
• SG&A ratio and marketing ROI (to gauge sustainability of operating leverage).
• Deferred revenue and accounts receivable trends (cash conversion).
• Operating margin trajectory and cost per acquisition.
• Cash and equivalents, OCF, and capex once disclosed.
• Agency network count/health and take rate.
• Effective tax rate stability (implied ~26%).

Relative Positioning: Within Japan’s matchmaking/platform space, IBJ exhibits high gross margins and improving operating margins indicative of scale benefits; leverage is moderate and liquidity is strong, positioning the company favorably versus more capital-intensive peers, though competitive dynamics from larger digital platforms remain a key offset.

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