Kurashicom Inc. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥2.43B
• Operating Income: ¥323M
• Net Income: ¥79M
• EPS: ¥29.84

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

FY2026 Q1 was a strong quarter for クラシコム, marked by robust top-line growth and sharp operating leverage, resulting in material profit expansion. Revenue rose 28.4% YoY to 24.33, while operating income surged 156.5% YoY to 3.23 and ordinary income increased 154.9% to 3.32. Net income climbed 180.0% YoY to 2.19, translating to a net margin of 9.0%. Based on reversals from disclosed YoY rates, operating margin expanded from roughly 6.7% in the prior-year quarter to about 13.3% this quarter, an improvement of approximately 660 bps. Net margin likely expanded by about 490 bps (from ~4.1% to 9.0%). Gross profit is disclosed at 8.10 with a gross margin of 33.3%, although there are inconsistencies among the reported gross profit, cost of sales, and operating income figures; we anchor margin commentary on operating and net results which tie to growth rates. SG&A was 6.84, implying meaningful fixed-cost leverage given revenue growth outpaced expense growth. The effective tax rate indicated is roughly 40%, though the reported profit-before-tax (1.30) and net income (2.19) are not mechanically consistent, suggesting unreported special items or classification differences under JGAAP. Liquidity is exceptionally strong with a current ratio of 617% and cash and deposits of 47.28 against total liabilities of 9.79. Leverage is conservative with D/E at 0.19x and long-term loans of only 0.63. ROE (DuPont) prints at 4.2%, driven primarily by an improved net margin, with low financial leverage muting amplification. Earnings quality cannot be fully assessed due to unreported cash flow statements; OCF/NI and FCF are not available. The calculated payout ratio of 161.5% flags potential sustainability concerns if continued, albeit the cash-rich balance sheet provides near-term flexibility. Forward-looking, the combination of strong revenue momentum, operating margin expansion, and a robust balance sheet supports continued execution, but investors should watch for confirmation in cash flows, clarity on the line-item inconsistencies, and any normalization in margins as growth scales.

Profitability Analysis

DuPont decomposition indicates ROE of 4.2% = Net Profit Margin (9.0%) × Asset Turnover (0.383) × Financial Leverage (1.22x). The largest positive delta YoY appears to be the margin component: operating income rose +156.5% on +28.4% revenue, with operating margin expanding ~660 bps to ~13.3%, and net margin improving ~490 bps to 9.0%. This likely reflects operating leverage from scaling revenue over a relatively fixed cost base (SG&A 6.84 grew slower than sales), mix improvements, and disciplined overhead. Asset turnover at 0.383 is modest and reflects a cash-heavy balance sheet; leverage at 1.22x remains low and stable, contributing little to ROE changes. The margin gains look cyclical/scale-driven rather than one-off, but sustainability depends on maintaining demand, customer acquisition efficiency, fulfillment/logistics costs, and content/advertising monetization efficiency. Watch for any period where SG&A growth outpaces revenue; this quarter, revenue growth outstripped costs, a favorable sign.

Growth Assessment

Top-line growth of +28.4% YoY to 24.33 demonstrates strong demand and/or successful customer acquisition and monetization. Profit growth significantly outpaced sales (OI +156.5%, NI +180.0%), evidencing operating leverage. Without segment detail, sustainability hinges on retention, repeat purchase behavior, advertising/media monetization, and cost discipline. Near-term outlook is supported by balance sheet strength and room to invest in growth. However, lack of cash flow disclosure and certain line-item inconsistencies suggest prudence until quality of earnings is corroborated by OCF. Monitor whether current margin levels normalize as scaling costs (marketing, logistics, content) catch up with revenue growth.

Financial Health

Liquidity is very strong: current assets 56.55 vs current liabilities 9.16 yields a current ratio of 617% and quick ratio of 617% given high cash component (47.28). No warning flags (Current Ratio >> 1.0). Solvency is conservative: total liabilities 9.79 vs equity 51.83 implies D/E of 0.19x, well within conservative thresholds. Long-term loans stand at 0.63 with negligible interest burden (interest expense reported 0.00 and interest coverage 1087.5x). Maturity mismatch risk is low: cash and receivables (50.26) comfortably exceed current liabilities (9.16). No off-balance sheet obligations are disclosed in the provided data. Overall, the company is cash-rich and under-levered, providing resilience and optionality.

Cash Flow Quality

Operating cash flow, free cash flow, and working capital cash movements are unreported, so OCF/NI and FCF coverage cannot be assessed. The absence of cash flow data limits our ability to validate earnings quality; therefore, we cannot confirm if OCF/Net Income > 1.0. Receivables of 2.98 equate to roughly 12% of quarterly revenue (~36 DSO on a quarterly run-rate), which appears reasonable; inventories are unreported, limiting assessment of inventory turns and potential build. With capex unreported, FCF sufficiency for dividends and reinvestment cannot be concluded. No direct signs of working capital manipulation can be identified from the limited data, but verification awaits cash flow disclosures.

Dividend Sustainability

Dividends per share are unreported, but the calculated payout ratio is 161.5%, implying distributions exceed current earnings on a period basis. Without FCF data, coverage cannot be measured; from a balance sheet perspective, substantial cash (47.28) provides near-term capacity to fund dividends. Persistently paying out above earnings would be unsustainable absent durable FCF, so monitoring policy statements and future OCF is critical. Given low leverage and high liquidity, short-term dividend risk is low, but medium-term sustainability depends on converting earnings growth into cash and aligning payouts with FCF.

Risk Assessment

Business Risks:

• Revenue concentration in e-commerce/media models susceptible to consumer demand and advertiser budgets
• Customer acquisition cost inflation potentially compressing margins
• Logistics and fulfillment cost volatility impacting contribution margin
• Content/advertising monetization cyclicality
• Talent retention and content production scalability

Financial Risks:

• High payout ratio (161.5%) vs earnings may pressure cash if sustained
• Cash flow opacity this quarter (OCF, FCF unreported) raises earnings quality uncertainty
• Potential margin normalization from current elevated levels
• Accounting inconsistencies across cost of sales, gross profit, and operating income lines

Key Concerns:

• Unreported cash flow statements prevent OCF/NI and FCF validation
• Internal inconsistencies: reported gross profit, cost of sales, and operating income do not reconcile
• Effective tax/PBT/NI figures suggest classification or extraordinary items not detailed
• Dependence on maintaining growth to sustain operating leverage benefits

Investment Implications

Key Takeaways:

• Strong quarter with +28.4% revenue growth and substantial operating leverage
• Operating margin expanded ~660 bps YoY to ~13.3%; net margin ~9.0%
• ROE at 4.2% driven mainly by margin improvement, not leverage
• Balance sheet is cash-rich (cash 47.28) with low D/E (0.19x)
• Dividend payout ratio appears elevated at 161.5%, requiring FCF validation
• Data inconsistencies and missing cash flows warrant cautious interpretation

Metrics to Watch:

• Operating cash flow and FCF in upcoming quarters
• Gross margin and contribution margin clarity/reconciliation
• SG&A growth vs revenue growth (operating leverage durability)
• Customer acquisition costs, repeat purchase metrics, AR days
• Logistics costs and any price/mix changes
• Dividend policy guidance relative to FCF

Relative Positioning: Versus TSE Growth peers in digital commerce/media, クラシコム appears better positioned on liquidity and leverage (cash-rich, low debt), with superior near-term operating leverage; however, disclosure gaps (cash flows) and payout elevation temper the quality assessment pending further data.

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