MicroAd Inc

MicroAd Inc maintains a strong liquidity position, with cash and equivalents amounting to ¥2.78 billion, representing a significant portion of its total assets of ¥8.03 billion. The company's liquidity FPT (free cash flow to total liabilities) is robust, indicating a solid ability to meet short-term obligations. The current ratio of 1.43 further supports this, showing that the company has sufficient current assets to cover its current liabilities.

In terms of profitability, MicroAd Inc's return on equity (ROE) of 5.79% and return on assets (ROA) of 2.47% are below the industry median for the Advertising & Marketing sector. This suggests that the company is not generating returns as efficiently as its peers. The operating income of ¥237.7 million and net income of ¥198.6 million indicate a healthy but not exceptional performance relative to the industry.

The company's revenue is concentrated in a few key segments, with the majority of its ¥3.64 billion in revenue derived from digital advertising solutions. Geographically, the company is heavily exposed to the Japanese market, with no significant international revenue streams disclosed. This concentration could pose a risk if the domestic market experiences a downturn.

Looking ahead, MicroAd Inc is projected to see a modest growth in revenue, with the current fiscal year expected to show a slight increase. The company's capital expenditure of -¥202.2 million indicates a reduction in spending, which may be a strategic move to preserve cash. The outlook for the next fiscal year is cautiously optimistic, with a projected revenue growth that aligns with the industry's average.

The risk assessment for MicroAd Inc indicates a low probability of dilution and no immediate liquidity concerns. The company's debt-to-equity ratio of 0.49 suggests a conservative capital structure, with long-term debt of ¥1.68 billion well within manageable limits. The absence of immediate filing-based liquidity or dilution flags further supports the company's stable financial position.

Recent events, including the latest financial filings and transcripts, have not revealed any significant changes in the company's operations or strategic direction. The company continues to focus on its core advertising and marketing services, with no major new initiatives or product launches disclosed in the recent period.

Low dilution, liquidity, and credit risk flags suggest a stable financial profile with minimal immediate structural threats.

Free cash flow recovered to 316 million JPY in FY2025, showing resilience after a significant previous decline.

Debt-to-equity ratio of 0.49 is well above the 0.14 cohort median, implying higher financial leverage risk.

Cash conversion of 0.57 falls below the 0.97 industry median, suggesting weaker quality of earnings.

Long-term debt increased to 2.7 billion JPY in FY2025, rising from 918 million JPY in FY2022.

Revenue ¥4.56B, +17,7% YoY; Operating income +237,8% YoY.

• ▍Revenue ¥4.56B, +17,7% YoY
• ▍Operating income +237,8% YoY
• ▍Net income +1 467,3% YoY
• ▍Net margin 6.7%

Revenue ¥3.99B, +17,7% YoY; Operating income −420,1% YoY.

• ▍Revenue ¥3.99B, +17,7% YoY
• ▍Operating income −420,1% YoY
• ▍Net income +2 667,7% YoY
• ▍Net margin 2.6%

Revenue ¥3.50B, +8,0% YoY; Operating income +1 368,1% YoY.

• ▍Revenue ¥3.50B, +8,0% YoY
• ▍Operating income +1 368,1% YoY
• ▍Net income +245,9% YoY
• ▍Net margin 1.8%

Revenue ¥4.31B, +18,3% YoY; Operating income −54,7% YoY.

• ▍Revenue ¥4.31B, +18,3% YoY
• ▍Operating income −54,7% YoY
• ▍Net income −74,7% YoY
• ▍Net margin 1.2%

Revenue ¥3.87B; Operating income ¥123.4M.

• ▍Revenue ¥3.87B
• ▍Operating income ¥123.4M
• ▍Net margin -0.6%

Revenue ¥3.39B; Operating income -¥44.0M.

• ▍Revenue ¥3.39B
• ▍Operating income -¥44.0M
• ▍Net margin -0.1%

Revenue ¥3.24B; Operating income ¥6.8M.

• ▍Revenue ¥3.24B
• ▍Operating income ¥6.8M
• ▍Net margin -1.3%

Revenue ¥3.64B; Operating income ¥237.7M.

• ▍Revenue ¥3.64B
• ▍Operating income ¥237.7M
• ▍Net margin 5.4%

Revenue ¥15.67B, +14,3% YoY; Operating income −72,4% YoY.

• ▍Revenue ¥15.67B, +14,3% YoY
• ▍Operating income −72,4% YoY
• ▍Net income −31,0% YoY
• ▍Free cash flow +260,5% YoY
• ▍Net margin 1.2%

Revenue ¥13.71B, +6,6% YoY; Operating income −56,3% YoY.

• ▍Revenue ¥13.71B, +6,6% YoY
• ▍Operating income −56,3% YoY
• ▍Net income −50,0% YoY
• ▍Free cash flow −72,4% YoY
• ▍Net margin 2.1%

Revenue ¥12.87B, +5,2% YoY; Operating income +26,1% YoY.

• ▍Revenue ¥12.87B, +5,2% YoY
• ▍Operating income +26,1% YoY
• ▍Net income +13,9% YoY
• ▍Free cash flow −16,9% YoY
• ▍Net margin 4.4%

Revenue ¥12.23B, +4,8% YoY; Operating income +347,2% YoY.

• ▍Revenue ¥12.23B, +4,8% YoY
• ▍Operating income +347,2% YoY
• ▍Net income +1 377,3% YoY
• ▍Free cash flow +992,2% YoY
• ▍Net margin 4.1%