CYBERDYNE,INC. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥1.96B
• Operating Income: ¥-174M
• Net Income: ¥68M
• EPS: ¥0.33

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Verdict: CYBERDYNE delivered a small net profit despite an operating loss, supported by strong operating cash flow and sizable non-operating gains, but growth and capital efficiency remain weak. Revenue was 19.63 (100M JPY), down 8.4% YoY, indicating demand softness or timing effects in system sales/services. Gross profit was 12.22, implying a healthy gross margin of 62.3%, but SG&A of 16.25 (82.8% of sales) drove operating income to -1.74 and an operating margin of -8.9%. Profit before tax came in at 2.97, signaling about 4.7 of net non-operating gains offsetting the operating shortfall. After taxes of 2.29 (effective tax rate 77.1%), net income was 0.70 and EPS was 0.33 JPY. EBITDA was positive at 1.34 (margin 6.8%), reflecting D&A of 3.08 and underscoring a heavy depreciation burden relative to scale. Operating cash flow was solid at 3.62, exceeding net income by 5.17x, aided by working capital inflows and non-cash add-backs. Free cash flow was -24.32, as investing outflows of -27.94 (far exceeding modest capex of -0.11) likely reflect acquisitions or financial investments (supported by goodwill of 17.59 on the balance sheet). The balance sheet is conservative: total assets 489.14, equity 396.12, equity ratio 81.0%, and D/E of 0.23x, providing ample solvency headroom. Liquidity data are limited (current liabilities unreported), but cash and equivalents of 43.11 provide a cushion. Capital efficiency is weak: ROE was 0.2%, driven by very low asset turnover (0.040) and minimal financial leverage (1.23x), and ROIC was -0.2% (below the 5% warning threshold). Equity-method income was immaterial at -0.04, confirming limited reliance on affiliates (non-shosha model). Margin comparison versus prior periods cannot be quantified due to lack of historical margin disclosure; directionally, profitability is pressured by high SG&A relative to revenue. Earnings quality is mixed: OCF is strong versus NI, but FCF is negative due to large investing outflows. Looking ahead, sustaining profitability depends on growing revenue to absorb SG&A, improving operating leverage, and demonstrating returns on recent investments (goodwill) to lift ROIC above the cost of capital.

Profitability Analysis

ROE decomposition: Net profit margin 3.6% × Asset turnover 0.040 × Financial leverage 1.23x = ROE 0.2%. The largest drag is asset turnover at 0.040, reflecting modest revenue against a sizable asset base. Net margin is modestly positive due to non-operating gains offsetting an operating loss, while financial leverage is low by design given the strong equity base. Business drivers: Gross margin is healthy (62.3%), but SG&A at 82.8% of sales indicates insufficient scale and limited operating leverage in the current period. The swing from operating loss to positive PBT implies substantial finance/other gains this half; with the effective tax rate at 77.1%, some non-recurring or non-taxable/timing items likely distorted after-tax results. Sustainability: Gross margins appear structurally solid for a technology/medical device model, but net margin sustainability is questionable without operating profit improvement; reliance on non-operating gains is not a durable earnings engine. Concerning trends: SG&A intensity far exceeds revenue, and revenue declined 8.4% YoY; SG&A growth vs revenue growth cannot be compared due to missing prior-period SG&A, but current SG&A burden is clearly elevated and limits operating leverage.

Growth Assessment

Top line: Revenue of 19.63 declined 8.4% YoY, suggesting softer demand or delivery timing delays. Mix/quality: Gross margin at 62.3% indicates pricing/solution value remains intact, implying revenue pressure is likely volume/timing rather than discounting. Profit trajectory: Operating loss (-1.74) versus positive PBT (2.97) points to non-operating items as the key profit driver; recurring earnings power remains below break-even at the operating level. EBITDA of 1.34 is positive but thin (6.8% margin), reflecting high fixed costs. Outlook drivers: Demonstrating sales scale-up to dilute SG&A, monetization of installed base (service/maintenance), and conversion of the investment program (goodwill 17.59; investing CF -27.94) into revenue/OP contributions are critical. Near-term growth visibility is limited by the YoY revenue decline and lack of order/backlog disclosure. Absent stronger revenue traction, margin expansion will be constrained; conversely, a rebound in deliveries could lift operating leverage quickly given high gross margin.

Financial Health

Liquidity: Current ratio not calculable (current liabilities unreported); no automatic warning triggered. Working capital reported at 168.19 likely reflects current assets due to missing current liabilities; thus true liquidity runway cannot be precisely assessed. Cash and equivalents are 43.11, providing a meaningful buffer. Solvency: Equity ratio is 81.0% and D/E is 0.23x (well below 1.5x benchmark), indicating conservative leverage. Maturity mismatch: Accounts receivable 4.80 and inventories 10.21 versus accounts payable 5.92 suggest no obvious overreliance on payables, but short-term debt data are unreported, limiting assessment of near-term refinancing needs. Off-balance sheet: No disclosures available; lease and purchase commitments not provided. Overall, the capital structure is strong, but the lack of current liability detail tempers confidence in short-term liquidity analysis.

Cash Flow Quality

Earnings-to-cash conversion is strong: OCF/NI is 5.17x, supported by non-cash D&A (3.08) and working capital inflows (OCF exceeds EBITDA by ~2.28). Despite positive OCF, FCF is -24.32 due to heavy investing outflows (-27.94) not related to routine capex (-0.11), implying acquisitions or financial investments. Dividend and buyback data are unreported, but given negative FCF, external funding or cash balances underwrite the investment program this half. No clear signs of working capital manipulation: inventories (10.21) and receivables (4.80) appear modest relative to assets, and payables (5.92) are not outsized. Sustainability: If investing intensity normalizes and OCF remains positive, FCF can improve; otherwise, continued investment without revenue lift will pressure cash balances.

Dividend Sustainability

Dividend data are unreported; historically the company has emphasized growth over cash returns. Payout ratios are not calculable. With OCF positive but FCF negative due to sizable investments, sustained shareholder distributions would rely on cash on hand rather than organic FCF in the near term. Policy outlook likely remains reinvestment-focused until operating profitability is consistently positive and ROIC improves above the cost of capital.

Risk Assessment

Business Risks:

• Revenue contraction (-8.4% YoY) indicating demand or delivery timing risk
• High SG&A intensity (82.8% of sales) limiting operating leverage and profitability
• Execution risk on recent investments/acquisitions (goodwill 17.59) to generate returns
• Regulatory/approval and reimbursement risks typical for medical/assistive robotics
• Product adoption and clinician/payer acceptance risk for novel technologies

Financial Risks:

• Negative FCF (-24.32) driven by heavy investing outflows (-27.94)
• Limited visibility on short-term liabilities; current ratio not calculable
• Very low asset turnover (0.040) depresses ROE/ROIC and increases hurdle for value creation
• Potential volatility from non-operating items driving PBT with a high effective tax rate (77.1%)

Key Concerns:

• Sustaining profitability is dependent on non-operating gains rather than core operations
• ROIC at -0.2% is below the 5% warning threshold, indicating value dilution risk if investments do not earn returns
• Cash burn at the investing level could persist if integration/scale-up is slower than expected
• Data gaps (current liabilities, non-operating income components) reduce transparency and forecasting confidence

Investment Implications

Key Takeaways:

• Core operations remain loss-making at the operating level despite strong gross margins; SG&A scale is the bottleneck.
• Net profit was achieved via sizable non-operating gains; sustainability is uncertain.
• OCF is healthy relative to net income, but FCF is negative due to an investment-heavy half.
• Balance sheet strength (81% equity ratio, D/E 0.23x) provides resilience during scaling.
• Capital efficiency is weak (ROE 0.2%, ROIC -0.2%) and must improve via revenue growth and post-deal synergies.

Metrics to Watch:

• Quarterly revenue growth and order/backlog indicators
• Operating margin progression and SG&A as a percentage of sales
• Detailed breakdown of non-operating income/expenses and tax normalization
• Cash conversion (OCF/EBITDA) and trajectory of investing cash flows
• ROIC by project/investment and goodwill impairment risk

Relative Positioning: Versus domestic medtech/robotics peers, CYBERDYNE exhibits strong gross margins and a conservative balance sheet but lags on scale, operating efficiency, and capital efficiency; near-term results rely more on non-operating items than recurring operating profit.

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