i-mobile Co.,Ltd. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥10.15B
• Operating Income: ¥8M
• Net Income: ¥720M
• EPS: ¥0.76

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

i-mobile Co., Ltd. (TSE:6535) reported FY2026 Q1 consolidated results under JGAAP with strong top-line growth but exceptionally weak profitability. Revenue rose 129.7% YoY to 101.46, yet operating income collapsed 99.2% YoY to 0.08, implying an operating margin of roughly 0.1%. Gross profit was 43.98, yielding a gross margin of 43.3%, but the combination of SG&A at 33.21 and additional unreported operating items compressed operating profit nearly to breakeven. Ordinary income was 0.43, modestly above operating income, indicating limited non-operating contribution (non-operating income of 0.05). Profit before tax was reported at 10.45, which is materially above ordinary income and suggests the presence of significant extraordinary items, but the lack of disclosure prevents precise attribution. The income tax expense was 3.24 (an implied tax rate of about 31% versus the reported PBT), yet net income was only 0.42, creating a discrepancy with the PBT figure and signaling data classification or reporting timing differences; we rely primarily on operating and ordinary income for core earnings analysis. DuPont analysis shows a net margin of 0.4%, asset turnover of 0.293x, and financial leverage of 2.35x, resulting in a very low ROE of about 0.3% for the quarter. Liquidity is strong: cash and deposits total 204.96 against current liabilities of 109.12, driving a current ratio of 218% and ample working capital of 129.23. The balance sheet appears conservatively positioned with total liabilities of 110.43 versus equity of 147.40 (total liabilities/equity ≈ 0.75x), and noncurrent liabilities are minimal at 1.31. Despite the robust cash position, earnings and margin trends in Q1 were weak, and the quality of profit is uncertain due to large unexplained gaps between gross profit, SG&A, operating income, and PBT. Reported cost of sales (0.19) is inconsistent with the reported gross profit and revenue, implying incomplete classification in the disclosed line items; we treat gross profit as the anchor for margin analysis. EPS was 0.76 JPY on average shares of 56.06 million, translating to a very low quarterly earnings base relative to book value per share of 262.88 JPY. Dividend data are largely unreported; the calculated payout ratio (3599.6%) is not meaningful for a single weak quarter and should not be extrapolated without full-year guidance. With advertising and digital services typically seasonal and sensitive to client budgets, quarter-to-quarter volatility can be high; the Q1 step-up in revenue coupled with margin compression suggests either mix shifts, aggressive customer acquisition/incentives, or one-off costs. Overall, strong liquidity provides a buffer, but near-term profitability visibility is limited by data gaps and unusual PBT dynamics.

Profitability Analysis

ROE_decomposition: Net profit margin: 0.4% (Net income 0.42 / Revenue 101.46)., Asset turnover: 0.293x (Revenue 101.46 / Assets 346.61)., Financial leverage: 2.35x (Assets 346.61 / Equity 147.40)., Implied ROE: ~0.3%, consistent with the reported figure. margin_quality: Gross margin: 43.3% (GP 43.98 / Revenue 101.46)., Operating margin: ~0.1% (Operating income 0.08 / Revenue 101.46)., Ordinary margin: ~0.4% (Ordinary income 0.43 / Revenue 101.46)., Large gap between GP (43.98) and Operating income (0.08) indicates significant other operating costs (e.g., promotions, content fees, provisions, impairments) not broken out; SG&A alone (33.21) does not bridge to operating income, implying additional operating items of roughly ~10.7. operating_leverage: Revenue +129.7% YoY but operating income -99.2% YoY indicates negative operating leverage in the quarter, likely due to mix shift and elevated operating costs., Non-operating income (0.05) had minimal impact; PBT (10.45) suggests extraordinary items not reflected in ordinary income.

Growth Assessment

revenue_sustainability: Revenue reached 101.46, up 129.7% YoY, a step change that may reflect business mix expansion (e.g., media/commerce or platform scale-up) and/or consolidation effects; sustainability is unclear without segment disclosures., Accounts receivable of 23.80 versus quarterly revenue implies DSO around ~21 days (assuming revenue is quarterly), consistent with an advertising/platform billing cycle. profit_quality: Core profitability is weak: ordinary income (0.43) is only slightly above operating income (0.08), indicating limited recurring financial income., PBT (10.45) deviates sharply from ordinary income, suggesting material non-recurring items; net income (0.42) does not track the PBT magnitude, which reduces confidence in using PBT for run-rate earnings. outlook: Given the high revenue growth but compressed margins, near-term outlook hinges on cost normalization, monetization efficiency (take rates), and mix improvements., Seasonality in digital ads and performance marketing may improve margins later in the year, but lack of cost breakdown and OCF data limits visibility., Key watchpoints: gross profit trajectory, SG&A control, and any disclosures on extraordinary gains/losses affecting PBT.

Financial Health

liquidity: Current assets 238.35 vs current liabilities 109.12; current ratio 218.4% and quick ratio 218.4% indicate strong short-term coverage., Cash and deposits 204.96 cover 188% of current liabilities, providing ample liquidity., Working capital is 129.23, offering operational flexibility. solvency: Total liabilities 110.43 vs equity 147.40 implies liabilities/equity of ~0.75x; noncurrent liabilities are minimal at 1.31., Interest-bearing debt is unreported; based on low noncurrent liabilities and high cash, leverage from debt appears limited, but cannot be confirmed. capital_structure: Equity base of 147.40 (book value per share ~262.88 JPY) against total assets 346.61 yields financial leverage of 2.35x., Retained earnings are reported at 171.34 within owners’ equity 146.80, indicating classification/aggregation differences in the XBRL; rely on total equity for ratios.

Cash Flow Quality

earnings_quality: OCF is unreported; quality of earnings cannot be validated against cash generation., Large discrepancies between GP, SG&A, operating income, ordinary income, and PBT point to classification and/or one-off items affecting comparability. FCF_analysis: Capex is unreported; free cash flow cannot be calculated., High cash balance suggests accumulated past FCF or financing; sustainability of cash levels depends on future OCF and capital allocation. working_capital: Accounts receivable of 23.80 relative to quarterly revenue implies manageable collection cycle., Other working capital items (inventories, payables detail) are limited or unreported; overall current asset mix is cash-heavy.

Dividend Sustainability

payout_ratio_assessment: Annual DPS is unreported; the calculated payout ratio of 3599.6% is not meaningful for a single quarter with very low EPS (0.76 JPY) and should not be extrapolated., Without full-year guidance and DPS disclosure, payout assessment using earnings-based metrics is inconclusive. FCF_coverage: OCF and FCF are unreported; cash coverage of dividends cannot be assessed quantitatively., Cash and deposits (204.96) provide capacity for dividends in the near term, but sustainability depends on normalized earnings and OCF. policy_outlook: Company’s dividend policy is not disclosed in the provided data; monitor full-year results and board announcements for payout targets, DOE, or stable/variable policy indications.

Risk Assessment

Business Risks:

• Exposure to digital advertising and performance marketing cycles, including client budget cuts and seasonality.
• Platform and regulatory changes (privacy, tracking restrictions, app store policies) that can affect ad efficacy and monetization.
• Competitive pressure in ad networks, affiliate, and media businesses leading to pricing compression.
• Revenue mix shifts (e.g., promotions/incentives) that dilute margins during growth phases.
• Concentration risk if large customers or specific media channels drive a disproportionate share of revenue.

Financial Risks:

• Earnings volatility evidenced by significant divergence between revenue growth and operating profit.
• Limited visibility due to unreported OCF/FCF and missing expense breakdowns.
• Potential one-off/extraordinary items impacting PBT and obscuring underlying profitability.
• Sensitivity of dividend capacity to cash generation given low quarterly EPS.

Key Concerns:

• Unusual gap between ordinary income (0.43) and profit before tax (10.45) without disclosed extraordinary item details.
• Inconsistency between reported cost of sales (0.19) and gross profit/revenue; reliance on gross profit figure for margin analysis.
• Operating margin near breakeven despite triple-digit revenue growth, indicating adverse mix or elevated operating costs.

Investment Implications

Key Takeaways:

• Top-line scaled sharply (+129.7% YoY), but profitability deteriorated to near breakeven at the operating level.
• ROE is very low (~0.3%) due to slim net margin and moderate asset turnover despite leverage.
• Balance sheet strength (cash 204.96; current ratio 218%) provides resilience and optionality.
• Reported PBT likely includes significant extraordinary items; core earnings should be proxied by operating/ordinary income.
• Data gaps in OCF/FCF and cost breakdown limit conviction on earnings quality and margin trajectory.

Metrics to Watch:

• Operating margin and SG&A-to-sales ratio trend.
• Gross profit and take-rate by segment (when disclosed).
• Ordinary income vs PBT reconciliation (extraordinary gains/losses).
• OCF/NI conversion and FCF once reported.
• DSO and receivables trend vs revenue growth.
• Dividend announcements and payout policy updates.

Relative Positioning: Within Japanese digital advertising/platform peers, the company shows strong liquidity and rapid revenue growth but subpar near-term profitability and opaque earnings quality due to limited disclosures this quarter.

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