Scala Inc

Scala Inc's capital structure is characterized by a debt-to-equity ratio of 1.1, indicating a moderate reliance on debt financing. The company holds JPY 7.66 billion in cash and equivalents, but this is offset by JPY 7.96 billion in long-term debt, resulting in a net cash position of negative JPY 302.6 million. The current ratio of 1.81 suggests the company has sufficient short-term assets to cover its short-term liabilities.

Profitability metrics reveal a challenging financial position for Scala Inc. The company reported a net loss of JPY 141.33 million and an operating loss of JPY 99.92 million in the latest period. Return on equity (ROE) is negative at -1.96%, and return on assets (ROA) is also negative at -0.80%. These figures are below the industry median for IT Services & Consulting, where positive ROE and ROA are typically expected.

Geographically, Scala Inc's revenue is concentrated in Japan, with no disclosed international operations in the latest financial data. The company does not report segment-specific revenue, but its business model is primarily based on IT services and consulting, with no material diversification into product-based revenue streams.

Looking ahead, Scala Inc is projected to experience a decline in revenue, with a negative outlook for the current fiscal year. The company's operating cash flow of JPY 203.68 million and free cash flow of JPY 65.70 million indicate some cash generation, but these figures are insufficient to cover the net loss and debt obligations. The company's capital expenditure of JPY 50.95 million is relatively modest, suggesting a conservative approach to reinvestment.

Risk factors for Scala Inc include its negative net cash position and the potential for further operating losses, which could lead to increased financial leverage or the need for additional financing. The risk assessment indicates a medium liquidity risk, with the company's cash reserves not fully covering its long-term debt. Dilution risk is currently low, as there is no indication of share issuance or dilution in the latest financial data.

Recent events and disclosures for Scala Inc include the latest financial results, which show a decline in profitability and a negative net cash position. No material events or regulatory actions have been disclosed in the latest filings or transcripts.

Fiscal 2025 net income surged 134% year-over-year to 982 million JPY, marking a significant profitability recovery.

Free cash flow improved by 130.3% to 722 million JPY in fiscal 2025, demonstrating strong cash generation capabilities.

Long-term debt decreased to 4.2 billion JPY in fiscal 2025, reflecting a consistent deleveraging trend over recent years.

Operating income jumped 134.9% to 751.8 million JPY in fiscal 2025, indicating a robust turnaround in core operations.

The company faces only low dilution and credit risk levels, suggesting a relatively stable capital structure environment.

Debt-to-equity ratio of 1.1 is significantly higher than the 0.12 median, ranking in the bottom quartile of peers.

Return on equity of -1.96% falls into the bottom quartile, underperforming the 4.27% median of the IT services cohort.

Cash conversion of -1.44 is in the bottom quartile, indicating poor efficiency in converting earnings to cash.

Revenue ¥1.86B, −16,3% YoY; Operating income −106,5% YoY.

• ▍Revenue ¥1.86B, −16,3% YoY
• ▍Operating income −106,5% YoY
• ▍Net income −96,6% YoY
• ▍Free cash flow +37,6% YoY
• ▍Net margin -4.5%

Revenue ¥918.8M, −60,7% YoY; Operating income +109,9% YoY.

• ▍Revenue ¥918.8M, −60,7% YoY
• ▍Operating income +109,9% YoY
• ▍Net income +135,5% YoY
• ▍Free cash flow +197,6% YoY
• ▍Net margin 48.7%

Revenue ¥2.46B, −15,6% YoY; Operating income +152,8% YoY.

• ▍Revenue ¥2.46B, −15,6% YoY
• ▍Operating income +152,8% YoY
• ▍Net income +113,1% YoY
• ▍Free cash flow +106,0% YoY
• ▍Net margin 7.4%

Revenue ¥1.95B, −14,9% YoY; Operating income +510,0% YoY.

• ▍Revenue ¥1.95B, −14,9% YoY
• ▍Operating income +510,0% YoY
• ▍Net income +380,6% YoY
• ▍Free cash flow +440,1% YoY
• ▍Net margin 20.3%

Revenue ¥2.23B; Operating income -¥35.3M.

• ▍Revenue ¥2.23B
• ▍Operating income -¥35.3M
• ▍Net margin -1.9%

Revenue ¥2.34B; Operating income -¥1.24B.

• ▍Revenue ¥2.34B
• ▍Operating income -¥1.24B
• ▍Net margin -53.9%

Revenue ¥2.91B; Operating income -¥689.3M.

• ▍Revenue ¥2.91B
• ▍Operating income -¥689.3M
• ▍Net margin -47.4%

Revenue ¥2.30B; Operating income -¥99.9M.

• ▍Revenue ¥2.30B
• ▍Operating income -¥99.9M
• ▍Net margin -6.2%

Revenue ¥8.18B, −23,7% YoY; Operating income +134,9% YoY.

• ▍Revenue ¥8.18B, −23,7% YoY
• ▍Operating income +134,9% YoY
• ▍Net income +134,0% YoY
• ▍Free cash flow +130,3% YoY
• ▍Net margin 12.0%

Revenue ¥10.71B, −9,5% YoY; Operating income −642,5% YoY.

• ▍Revenue ¥10.71B, −9,5% YoY
• ▍Operating income −642,5% YoY
• ▍Net income −1 221,2% YoY
• ▍Free cash flow −1 874,0% YoY
• ▍Net margin -27.0%

Revenue ¥11.84B, +23,7% YoY; Operating income +307,1% YoY.

• ▍Revenue ¥11.84B, +23,7% YoY
• ▍Operating income +307,1% YoY
• ▍Net income +58,2% YoY
• ▍Free cash flow +136,2% YoY
• ▍Net margin -1.8%

Revenue ¥9.57B, +9,8% YoY; Operating income −146,4% YoY.

• ▍Revenue ¥9.57B, +9,8% YoY
• ▍Operating income −146,4% YoY
• ▍Net income −117,1% YoY
• ▍Free cash flow −252,0% YoY
• ▍Net margin -5.5%