Disruptors Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥2.54B
• Operating Income: ¥357M
• Net Income: ¥65M
• EPS: ¥11.51

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

Disruptors Co., Ltd. (65380) delivered strong FY2026 Q2 consolidated results under JGAAP, with clear signs of operating leverage and improving profitability. Revenue rose 20.6% YoY to ¥2,538m, while operating income surged 136% YoY to ¥357m, indicating significant fixed-cost dilution and better cost discipline. Gross profit reached ¥1,422m, translating to a robust gross margin of 56.0%, which underpins the quality of earnings. Operating margin improved to approximately 14.1%, supported by contained SG&A and modest D&A of ¥105m. Ordinary income of ¥354m was virtually in line with operating income, reflecting minimal non-operating drag (interest expense only ¥3m). Net income increased 257.7% YoY to ¥235m, lifting net profit margin to 9.26% and EPS to ¥11.51. DuPont analysis indicates ROE of 10.28%, driven by net margin of 9.26%, asset turnover of 0.666x, and financial leverage of 1.67x. Liquidity metrics appear comfortable, with a current ratio of 170% and working capital of ¥676m; solvency also looks sound with total liabilities to equity of 0.70x. Operating cash flow of ¥289m exceeded net income (OCF/NI = 1.23x), suggesting decent earnings quality and manageable accruals in the period. Interest coverage is exceptionally strong at 119x, highlighting low financial risk from borrowing costs. The company reported zero figures for several items (e.g., cash and equivalents, investing CF, equity ratio, shares outstanding), which should be interpreted as undisclosed rather than truly zero based on the provided guidance. Using the disclosed balance sheet, the implied equity ratio is about 59.9% (equity/total assets), despite the reported 0.0% figure. The lack of disclosed investing cash flow prevents a definitive view on capex and free cash flow, although operating cash generation is healthy. Dividend DPS and payout ratio are reported at zero, indicating earnings are being retained, which is consistent with growth investment and/or balance-sheet strengthening. Overall, the company’s margin expansion, strong operating leverage, and solid liquidity/solvency frame a positive operating picture, albeit with data gaps in cash, investing activities, and share information that constrain certain analyses.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 9.26% (NI ¥235m / Revenue ¥2,538m)
• asset_turnover: 0.666x (Revenue ¥2,538m / Total assets ¥3,813m)
• financial_leverage: 1.67x (Assets ¥3,813m / Equity ¥2,285m)
• roe: 10.28% (DuPont product consistent with reported figure) margin_quality:
• gross_margin: 56.0% (¥1,422m / ¥2,538m), indicative of strong unit economics/pricing and/or favorable mix
• operating_margin: 14.1% (Operating income ¥357m / Revenue ¥2,538m), significant YoY expansion given OI +136% vs Revenue +20.6%
• ebitda_margin: 18.2% (EBITDA ¥462m / Revenue ¥2,538m)
• net_margin: 9.26%, supported by low interest burden (¥3m) operating_leverage: Pronounced: revenue grew 20.6% YoY while operating income grew 136% YoY, implying substantial fixed-cost leverage and SG&A efficiency. D&A at ¥105m (≈4.1% of sales) is moderate and not a headwind to EBIT growth.

Growth Assessment

revenue_sustainability: 20.6% YoY top-line growth suggests robust demand and/or successful commercial execution; sustainability will depend on retention of gross margin and pipeline/booking visibility (not disclosed). profit_quality: Margin expansion across the P&L with minimal non-operating noise and strong interest coverage indicates that earnings growth is predominantly operational. OCF/NI of 1.23x supports earnings quality. outlook: With a 56% gross margin and improving operating margin, the company appears positioned for further incremental operating leverage if growth persists. However, absent disclosure on capex and cash levels, growth reinvestment capacity and potential working capital needs warrant monitoring.

Financial Health

liquidity:

• current_ratio: 170.0% (CA ¥1,642m / CL ¥966m)
• quick_ratio: 170.0% (inventories reported as 0, interpreted as undisclosed; quick ratio thus equals current ratio on available data)
• working_capital: ¥676m
• note: Cash and equivalents reported as 0 should be interpreted as undisclosed; actual liquidity buffer cannot be confirmed. solvency_and_capital_structure:
• total_assets: ¥3,813m
• total_liabilities: ¥1,589m
• total_equity: ¥2,285m
• debt_to_equity: 0.70x (liabilities/equity)
• interest_coverage: 119.0x (EBIT ¥357m / Interest ¥3m)
• equity_ratio_implied: ≈59.9% (equity/assets), despite reported 0.0% which reflects non-disclosure per guidance

Cash Flow Quality

earnings_quality: OCF/Net income = 1.23x (¥289m / ¥235m), indicating relatively high-quality earnings with cash conversion above parity. free_cash_flow: Not determinable: Investing CF reported as 0 (interpreted as undisclosed). Calculated FCF shown as 0 should be treated as placeholder; underlying FCF could be positive given OCF strength. working_capital_dynamics: Positive OCF alongside revenue growth suggests manageable working capital absorption; detailed drivers (receivables/payables/inventory) are undisclosed, limiting granularity.

Dividend Sustainability

payout_ratio_assessment: Payout ratio reported at 0.0% given no DPS; with NI ¥235m, all earnings appear retained. fcf_coverage: Not assessable: FCF is reported as 0 due to lack of investing CF disclosure; hence coverage metrics are not meaningful. policy_outlook: Retention aligns with growth and balance-sheet fortification. Future distributions would depend on visibility into sustainable OCF, capex needs (undisclosed), and capital allocation priorities.

Risk Assessment

Business Risks:

• Dependence on sustaining high gross margins (56%) amid potential competitive pricing pressure.
• Sensitivity to demand growth; operating leverage amplifies downside if revenue slows.
• Customer concentration or project-based revenue risk (not disclosed).
• Supply-chain or input cost variability that could compress margins.
• Execution risk tied to scaling operations while maintaining cost discipline.

Financial Risks:

• Limited visibility on cash balances (cash reported as 0 implies undisclosed).
• Capex intensity unknown due to undisclosed investing cash flows, creating uncertainty around FCF durability.
• Potential working capital swings with growth that could pressure near-term OCF.
• Equity ratio officially undisclosed (reported 0.0%), requiring reliance on implied calculation.

Key Concerns:

• Data gaps in investing CF and cash restrict assessment of liquidity headroom and FCF.
• Sustainability of outsized operating leverage gains if growth normalizes.
• Lack of dividend policy clarity despite stronger earnings.

Investment Implications

Key Takeaways:

• Strong operating leverage: Revenue +20.6% YoY vs Operating income +136% YoY.
• Healthy profitability: Gross margin 56.0%, operating margin ~14.1%, net margin 9.26%.
• ROE 10.28% underpinned by solid margins and moderate leverage (1.67x).
• Robust coverage: Interest coverage 119x; liabilities/equity 0.70x.
• Good cash conversion: OCF/NI 1.23x, though full FCF unclear.
• Liquidity appears comfortable: Current ratio 170%, working capital ¥676m.
• Dividend suspended/none: DPS and payout at 0, implying earnings retention.

Metrics to Watch:

• Top-line growth trajectory and backlog/pipeline indicators (undisclosed).
• SG&A ratio and operating margin to confirm sustainability of leverage gains.
• Capex and investing CF disclosure to gauge true FCF and reinvestment needs.
• Cash and equivalents level and changes in net debt.
• Working capital turns: receivables days, payables days, and any inventory build (currently undisclosed).
• Tax rate normalization (implied ~24% using ¥84m tax on ¥354m pre-tax vs calculated metric shown as 0.0%).

Relative Positioning: On available data, the company appears to exhibit above-average margin profile and solid balance-sheet leverage versus typical TSE small/mid-cap peers, with exceptionally high interest coverage; however, incomplete disclosure on cash and investing flows constrains comparability on FCF and liquidity depth.

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