Strong Balance Sheet (zero Debt)The balance sheet materially improved with zero reported debt in FY2025 and significantly expanded equity, which enhances financial flexibility and reduces refinancing risk. A positive ROE (~9.2%) indicates the firm can produce returns on capital, supporting resilience through cycles.

Revenue And Profitability TurnaroundFY2025 shows a clear operating inflection: revenue increased ~24% and the company swung to positive operating profit and a ~10.6% net margin. If sustained, this indicates improved product-market fit and execution, creating a stronger long-term earnings base.

Stable Gross MarginsGross margins have remained steady in the low-to-high 30% range through prior years and the FY2025 recovery, implying durable unit economics. Stable gross margins support margin sustainability if revenue growth is maintained and operating leverage is realized.

Bears Say

Persistent Negative Cash ConversionOperating and free cash flow are negative across all years shown, including FY2025, meaning reported profits are not converting to cash. Persistent cash burn undermines internal funding capacity, increasing dependence on external financing and elevating long-term liquidity risk.

Recent Turnaround Follows Multi-year LossesThe FY2025 profit recovery follows several years of sizable losses, so the improvement is recent and unproven over a full cycle. Execution, cost discipline, and revenue durability must be maintained to avoid reversion, creating material sustainability risk for investors.

Liquidity Risk Despite Zero DebtAlthough leverage is reduced to zero debt, negative operating cash flow and free cash flow persist, so liquidity and funding risk remain. Without positive cash generation, the company may still face working capital pressure or need external capital to fund growth.

2586 FAQ

What was FRUTA FRUTA, Inc.’s price range in the past 12 months?

FRUTA FRUTA, Inc. lowest stock price was ¥117.00 and its highest was ¥454.00 in the past 12 months.

What is FRUTA FRUTA, Inc.’s market cap?

FRUTA FRUTA, Inc.’s market cap is ¥14.37B.

When is FRUTA FRUTA, Inc.’s upcoming earnings report date?

FRUTA FRUTA, Inc.’s upcoming earnings report date is May 18, 2026 which is in 88 days.

How were FRUTA FRUTA, Inc.’s earnings last quarter?

FRUTA FRUTA, Inc. released its earnings results on Feb 13, 2026. The company reported -¥1.17 earnings per share for the quarter, missing the consensus estimate of N/A by -¥1.17.

Is FRUTA FRUTA, Inc. overvalued?

According to Wall Street analysts FRUTA FRUTA, Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does FRUTA FRUTA, Inc. pay dividends?

FRUTA FRUTA, Inc. does not currently pay dividends.

What is FRUTA FRUTA, Inc.’s EPS estimate?

FRUTA FRUTA, Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does FRUTA FRUTA, Inc. have?

FRUTA FRUTA, Inc. has 101,879,570 shares outstanding.

What happened to FRUTA FRUTA, Inc.’s price movement after its last earnings report?

FRUTA FRUTA, Inc. reported an EPS of -¥1.17 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -2.083%.

Which hedge fund is a major shareholder of FRUTA FRUTA, Inc.?

Currently, no hedge funds are holding shares in JP:2586

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

FRUTA FRUTA, Inc.

FRUTA FRUTA, Inc. (2586) is a Japanese company that specializes in the import, development, and sale of fruit-based products, primarily focusing on acai and other superfruits. The company operates within the food and beverage sector, offering a range of health-oriented products including juices, smoothies, frozen foods, and dietary supplements. FRUTA FRUTA emphasizes sustainability and health benefits in its product offerings, catering to health-conscious consumers.