Very High Gross MarginsSustained gross margins near 92% indicate the core offering has very low incremental costs and strong unit economics. That structural margin advantage gives the company scope to absorb SG&A and R&D, and — if operating leverage is realized — convert revenue growth into durable profitability over time.

Zero Leverage On Balance SheetA zero-debt balance sheet materially reduces financial distress risk and provides strategic flexibility. This conservatively financed position supports continued investment, gives runway to pursue growth or restructuring, and lowers near-term refinancing pressure while the business stabilizes.

Strong Revenue Rebound In FY2025A 416% revenue rebound signals resumed demand or successful commercial execution after a weak prior year. If driven by sustainable product adoption or contract wins, this structural recovery can improve scale, enhance operating leverage, and create a pathway to convert high gross margins into lasting profitability.

Bears Say

Persistent Negative Cash FlowConsistent negative operating and free cash flow (including ~-521M in FY2025) means the company burns cash to run operations. Over 2-6 months this increases dependence on external funding or equity raises, constrains strategic choices, and raises dilution and solvency risks if losses persist.

Ongoing Operating LossesDespite revenue recovery and high gross margins, operating losses remain large. Structural inability to cover operating expenses undermines sustainable earnings generation, delays free cash flow breakeven, and makes long-term value creation contingent on meaningful cost or revenue mix improvements.

Volatile Equity And Negative ROEVolatile shareholder equity and persistently negative ROE reflect uneven capital preservation and weak returns on invested capital. This signals poor capital efficiency, heightens dilution risk from future financings, and complicates long-term shareholder value creation absent a clear profit pathway.

2338 FAQ

What was Quantum Solutions Co.,Ltd.’s price range in the past 12 months?

Quantum Solutions Co.,Ltd. lowest stock price was ¥130.00 and its highest was ¥850.00 in the past 12 months.

What is Quantum Solutions Co.,Ltd.’s market cap?

Quantum Solutions Co.,Ltd.’s market cap is ¥6.64B.

When is Quantum Solutions Co.,Ltd.’s upcoming earnings report date?

Quantum Solutions Co.,Ltd.’s upcoming earnings report date is Apr 10, 2026 which is in 49 days.

How were Quantum Solutions Co.,Ltd.’s earnings last quarter?

Quantum Solutions Co.,Ltd. released its earnings results on Jan 13, 2026. The company reported -¥20.16 earnings per share for the quarter, missing the consensus estimate of N/A by -¥20.16.

Is Quantum Solutions Co.,Ltd. overvalued?

According to Wall Street analysts Quantum Solutions Co.,Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Quantum Solutions Co.,Ltd. pay dividends?

Quantum Solutions Co.,Ltd. does not currently pay dividends.

What is Quantum Solutions Co.,Ltd.’s EPS estimate?

Quantum Solutions Co.,Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Quantum Solutions Co.,Ltd. have?

Quantum Solutions Co.,Ltd. has 49,248,592 shares outstanding.

What happened to Quantum Solutions Co.,Ltd.’s price movement after its last earnings report?

Quantum Solutions Co.,Ltd. reported an EPS of -¥20.16 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -7.357%.

Which hedge fund is a major shareholder of Quantum Solutions Co.,Ltd.?

Currently, no hedge funds are holding shares in JP:2338

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Quantum Solutions Co.,Ltd.

Quantum Solutions Co.,Ltd. engages in the system solutions, contents development and distribution, software outsourced development, and eyelash care businesses worldwide. The company engages in system consulting, system integration, software development, and system contract development. It also operates eyelash extension salon, eyelash extension school, and eyelash care business for selling cosmetics. In addition, the company is involved in planning, designing, development, operation, and maintenance activities, as well as EV business. The company was formerly known as Bit One Group Co.,Ltd. and changed its name to Quantum Solutions Co.,Ltd. in August 2021. The company was incorporated in 1999 and is headquartered in Tokyo, Japan.