| Indicator | Current Period | Same Period Last Year | YoY |
|---|---|---|---|
| Revenue | ¥163.6B | ¥184.9B | -11.5% |
| Operating Income | ¥9.3B | ¥15.6B | -40.0% |
| Ordinary Income | ¥9.5B | ¥15.7B | -39.2% |
| Net Income | ¥6.1B | ¥10.3B | -41.0% |
| ROE | 4.5% | 7.2% | - |
Saison Technology Co., Ltd.’s consolidated results for FY2026 Q3 were Revenue of ¥163.6B (YoY -¥21.3B, -11.5%), Operating Income of ¥9.3B (YoY -¥6.3B, -40.0%), Ordinary Income of ¥9.5B (YoY -¥6.2B, -39.2%), and Net Income attributable to owners of the parent of ¥6.1B (YoY -¥4.2B, -41.0%), resulting in lower revenue and earnings. Operating Income declined 40.0% against an 11.5% revenue decrease, indicating negative operating leverage due to higher fixed-cost burden. Full-year guidance calls for Revenue of ¥221.0B (YoY -9.4%), Operating Income of ¥13.0B (YoY -39.3%), Ordinary Income of ¥13.0B (YoY -39.8%), and Net Income of ¥8.5B.
[Profitability] ROE 4.5% (declined YoY); Operating Margin 5.7% (down -2.7pt from 8.4% last year); Net Margin 3.7% (down -1.9pt from 5.6% last year); Gross Margin 34.8%. The SG&A ratio rose to 29.1% (up +3.3pt from 25.8% last year), with SG&A of ¥47.6B pressuring Operating Income. DuPont breakdown: Net Margin 3.7%, Total Asset Turnover 0.791, Financial Leverage 1.54; deterioration in profitability is the primary factor. [Cash Quality] Cash and deposits were ¥121.3B (up +¥6.0B from ¥115.3B a year ago), and short-term debt coverage was 1.76x, indicating ample liquidity. Working capital was ¥93.3B, with a stable receivables-payables balance. Advances received of ¥40.2B are recorded as deferred revenue, providing pull-through for future sales. [Investment Efficiency] Total Asset Turnover was 0.791 (annualized), below the prior-year level. [Financial Soundness] Equity Ratio 64.9% (down -2.3pt from 67.2% last year), Current Ratio 235.2%, and Debt-to-Equity Ratio 0.54x, maintaining a conservative capital structure.
Cash and deposits increased by +¥6.0B YoY to ¥121.3B, and despite operating profit decline, the funding base remains stable. Cash coverage of short-term debt of ¥69.0B is 1.76x, keeping liquidity risk limited. In working capital efficiency, advances received of ¥40.2B show that customer prepayments contribute to funding. Trade receivables were ¥27.4B versus trade payables of ¥31.5B, indicating a payables-exceeding-receivables position, with supplier credit supporting cash efficiency. Meanwhile, the coexistence of rising cash and declining profits suggests potential investment restraint or financing activities. Interest-bearing debt is ¥15.0B, far below cash and deposits, resulting in a healthy net cash position of ¥106.3B.
Ordinary Income was ¥9.5B versus Operating Income of ¥9.3B, with a slight net non-operating increase of ¥0.2B. Non-operating income was ¥0.8B, mainly interest and dividend income, and non-operating expenses were ¥0.6B, leaving financial income/expenses roughly neutral. In terms of quality of Operating Income, the DataPlatform Segment posted a significant loss with revenue of ¥21.9B and an operating loss of ¥26.7B, while the HULFT Segment maintained high profitability with revenue of ¥72.8B and Operating Income of ¥29.7B (margin 40.8%), leading to a skewed contribution structure to total Operating Income of ¥9.3B. The widening loss in DataPlatform raises concerns about the quality and sustainability of earnings. Extraordinary gains/losses were near zero, indicating no one-off profit uplift; the decline in recurring earning power is the main cause of lower Net Income.
[Position within Industry] (Reference information, in-house research) Compared with the IT/Telecommunications industry’s FY2025 Q3 benchmark (68 companies), challenges are pronounced in profitability. Profitability: Operating Margin of 5.7% is below the industry median of 6.4% (IQR 2.0%–13.5%), and Net Margin of 3.7% is also below the industry median of 4.8% (IQR 0.6%–9.4%). ROE of 4.5% is well below the industry median of 7.3% (IQR 0.9%–12.1%), placing the company in the lower tier. Growth: Revenue growth of -11.5% diverges significantly from the industry median of +12.0% (IQR +2.0%–+24.5%), and the revenue decline runs counter to the overall industry trend. Soundness: The Equity Ratio of 64.9% exceeds the industry median of 55.2% (IQR 42.5%–67.3%), placing the financial base at a higher level within the industry. The Current Ratio of 235.2% also exceeds the industry median of 208% (IQR 156%–301%). The Net Debt/EBITDA multiple is healthy, similar to the industry median of -2.88 due to a net cash position. Return on Assets is at a similar level to the industry median of 3.8% (IQR 0.5%–6.0%), leaving efficiency at a mid-tier level. Industry: IT/Telecommunications (68 companies); Comparison target: FY2025 Q3; Source: our compilation of public financial data.
Key highlights are as follows. First, the DataPlatform Segment’s operating loss of ¥26.7B (as a share of revenue: -122.0%) offsets the high profitability of the HULFT Segment (Operating Margin 40.8%), pressing down the consolidated Operating Margin to 5.7%—a structural profitability issue. The breakeven scenario and timeline for DataPlatform are pivotal to achieving full-year guidance. Second, compared with full-year guidance (Operating Income ¥13.0B), progress is 71.5% with FY2026 Q3 YTD Operating Income of ¥9.3B, implying a need for ¥3.7B of Operating Income in Q4 standalone; if the Q3 earnings decline trend persists, the risk of a shortfall is high. Third, with a Payout Ratio of 240.6%, there is a large gap between profit and dividend levels; while cash and deposits of ¥121.3B underpin dividends, delays in profit recovery could raise doubts about medium- to long-term dividend sustainability.
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not constitute a recommendation to invest in any specific security. The industry benchmarks are reference information compiled by our firm based on public financial data. Investment decisions are your own responsibility; please consult a professional as necessary.