Tameny Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥2.77B
• Operating Income: ¥-119M
• Net Income: ¥-136M
• EPS: ¥-4.97

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment 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

Tameny Co., Ltd. (single-entity, JGAAP) reported FY2026 Q2 revenue of ¥2,769 million, up 2.7% YoY, indicating modest top-line recovery. Reported gross profit was ¥1,898 million, implying a high gross margin of 68.5%, which suggests solid unit economics in core services. Operating income remained at a loss of ¥119 million (flat YoY per disclosure), with EBITDA nearly breakeven at ¥-10 million, reflecting that depreciation and amortization of ¥109 million drove most of the operating loss. Ordinary income was ¥-145 million and net income was ¥-136 million (EPS: ¥-4.97), pointing to continued bottom-line pressure. Despite the net loss, operating cash flow was positive at ¥150 million, indicating improving cash conversion and some relief from working capital or non-cash charges. Current assets were ¥2,292 million versus current liabilities of ¥2,344 million, yielding a current ratio of 97.8% and slightly negative working capital of ¥-52 million. Total liabilities of ¥4,284 million exceeded total assets of ¥4,007 million, resulting in negative equity of ¥-130 million and a reported equity ratio of 0.0%, underscoring a stressed balance sheet. Interest expense totaled ¥22.5 million, and interest coverage was negative (approximately -5.3x on EBIT), highlighting limited debt-servicing headroom absent further EBITDA improvement. The DuPont-calculated ROE of 104.62% is not economically meaningful due to negative equity; leverage turns the negative margin into a mathematically positive ROE. Free cash flow cannot be assessed robustly because investing cash flows were not disclosed (reported as 0, which indicates not reported), but financing cash flow was an outflow of ¥406 million, suggesting repayments or other reductions of financial liabilities. The company did not pay dividends (DPS: ¥0.00), consistent with balance sheet repair priorities and loss-making status. Liquidity remains tight with sub-1.0x current and quick ratios, and solvency risk is elevated given negative net assets. Gross margin strength contrasts with weak operating leverage, indicating SG&A intensity or scale challenges are constraining profitability. Revenue growth of 2.7% YoY, together with near-EBITDA breakeven, suggests that modest incremental volume or cost control could tip the business into positive operating profit. However, negative equity and limited interest coverage present urgent capital structure and financing risks. Data limitations include certain zero entries that reflect non-disclosure rather than actual zero values (e.g., investing cash flows, cash balance, shares outstanding), which constrain precision in FCF and per-share analysis.

Profitability Analysis

ROE decomposition is distorted by negative equity: net margin (-4.91%) x asset turnover (0.691x) x financial leverage (-30.82x) yields a mechanically high positive ROE (104.62%) that is not economically interpretable. Core margin signals are mixed: the reported gross margin is high at 68.5%, implying favorable pricing or low direct costs in the service mix, but operating margin is -4.3% (operating loss of ¥119m on ¥2,769m revenue), showing SG&A burden outweighs gross profit. EBITDA of ¥-10m (margin -0.4%) indicates the business is near cash operating breakeven before D&A. D&A of ¥109m points to a meaningful non-cash expense base (systems, software, or past capitalized assets) that depresses EBIT relative to EBITDA. Ordinary loss of ¥145m reflects financing costs (¥22.5m interest) and possibly non-operating items. Interest coverage is negative (approximately -5.3x on EBIT), emphasizing that profitability needs to improve to sustainably cover financing costs. Operating leverage appears high: small improvements in revenue or gross profit could push EBITDA into positive territory, but current SG&A intensity prevents operating profitability. Effective tax rate is effectively 0% due to losses, so taxes are not currently a drag. Overall, profitability hinges on scaling revenue and/or structurally reducing SG&A to translate strong gross margin into positive EBIT.

Growth Assessment

Revenue grew 2.7% YoY to ¥2,769m, indicating modest recovery. Gross profit growth appears healthy given the 68.5% margin, but operating profit did not improve materially (operating loss unchanged YoY per disclosure), suggesting limited operating leverage realized in the period. The near-breakeven EBITDA profile indicates growth is approaching the threshold to yield positive operating cash profits. Sustainability of revenue growth will depend on demand recovery in matchmaking/wedding-related services, marketing efficiency, and retention/ARPU trends. Profit quality is mixed: net losses persist, but positive OCF suggests earnings are conservative relative to cash or supported by working capital inflows/non-cash items. Outlook near term: incremental growth combined with cost discipline could deliver positive EBITDA and a path to operating profit; however, balance sheet constraints may limit growth investments. Given negative equity and limited coverage, management may prioritize margin improvements, cost optimization, and selective growth initiatives with fast paybacks. Without capex disclosures, capital intensity trends are unclear, constraining visibility on medium-term scaling.

Financial Health

Liquidity: current assets ¥2,292m vs current liabilities ¥2,344m yields a current ratio of 97.8% and quick ratio of 97.8% (inventories not disclosed), with working capital of ¥-52m, indicating tight short-term liquidity. Solvency: total liabilities ¥4,284m exceed total assets ¥4,007m, producing negative equity of ¥-130m and a reported equity ratio of 0.0%, flagging material balance sheet weakness. Capital structure: Debt-to-equity ratio of -32.96x is not meaningful due to negative equity; nonetheless, leverage reliance is high as liabilities exceed assets. Interest expense of ¥22.5m against negative EBIT indicates insufficient coverage; continued losses could strain refinancing or covenant compliance. Overall, the company faces elevated solvency risk and likely needs either sustained cash generation, liability reduction, or capital measures to restore net assets.

Cash Flow Quality

Earnings quality appears better than the income statement suggests: operating cash flow of ¥149.7m exceeds net income of ¥-136m (OCF/NI = -1.10), helped by non-cash charges (D&A ¥109m) and/or working capital movements. EBITDA at ¥-10m being close to zero implies limited structural cash burn before capex and financing. Free cash flow cannot be reliably calculated because investing cash flows are undisclosed (reported as 0 indicates not reported). Financing CF was an outflow of ¥406m, implying repayments or other financing uses that reduced cash reliance. Working capital appears to have supported OCF, given the discrepancy between net loss and positive OCF; however, without detailed AR/AP changes, the durability of this support is uncertain. Overall, cash conversion from operations is improving, but sustainability depends on maintaining positive EBITDA and stable working capital.

Dividend Sustainability

DPS was ¥0.00 with a payout ratio of 0.0%, consistent with loss-making status and balance sheet repair needs. Given negative equity and limited coverage of interest, distributions are currently not sustainable. FCF coverage cannot be assessed due to missing investing cash flow data; however, operating cash inflow alongside financing outflows suggests capital preservation is a priority. Near-term policy outlook likely prioritizes earnings recovery, liquidity, and equity restoration over shareholder returns. Resumption of dividends would require sustained positive EBITDA/EBIT, restored net assets, and improved coverage metrics.

Risk Assessment

Business Risks:

• Demand volatility in matchmaking and wedding-related services amid demographic headwinds in Japan
• High customer acquisition and advertising costs pressuring SG&A and breakeven
• Competitive intensity from online platforms and alternative services impacting pricing and conversion
• Execution risk in cost reduction and service mix optimization to realize operating leverage
• Sensitivity to consumer sentiment and discretionary spending cycles

Financial Risks:

• Negative equity (¥-130m) and equity ratio 0.0% implying heightened solvency risk
• Sub-1.0x current ratio (97.8%) indicating tight liquidity
• Negative interest coverage (~-5.3x) with ¥22.5m interest expense
• Reliance on continued positive OCF; working capital-driven cash flow may not be recurring
• Refinancing and covenant risks if lenders tighten terms; interest rate sensitivity

Key Concerns:

• Balance sheet repair is urgent given liabilities exceed assets
• Operating losses persist despite strong gross margins, indicating SG&A intensity
• Limited visibility on capex and cash balances due to undisclosed investing CF and cash data
• Mathematically inflated ROE due to negative equity masks true return profile

Investment Implications

Key Takeaways:

• Modest revenue growth (+2.7% YoY) with strong gross margin (68.5%) but continued operating loss (¥-119m)
• EBITDA nearly breakeven (¥-10m) suggests proximity to cash operating profitability
• Positive operating cash flow (¥150m) contrasts with net loss (¥-136m), aided by non-cash items/working capital
• Liquidity tight (current ratio 97.8%) and solvency strained (negative equity ¥-130m)
• Interest coverage negative (~-5.3x), highlighting urgency of EBITDA improvement and/or liability reduction
• Dividend suspended (DPS ¥0), aligning with capital preservation and equity restoration priorities

Metrics to Watch:

• Quarterly EBITDA and EBIT progression; SG&A-to-revenue ratio
• Operating cash flow sustainability and working capital movements
• Gross margin stability vs. marketing and fulfillment costs
• Liability reduction, equity restoration measures, and equity ratio trajectory
• Interest expense and coverage; refinancing timelines and terms
• Revenue growth drivers (conversion, ARPU, service mix) and booking trends

Relative Positioning: Compared with domestic lifestyle/services peers, Tameny exhibits stronger gross margins but weaker operating leverage and a meaningfully weaker balance sheet (negative equity), placing it at a disadvantage in financing flexibility and resilience until profitability and net assets are restored.

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