Near-zero Net Debt / Strong Balance SheetA near-zero debt profile provides durable financial flexibility and low solvency risk. Over the next 2–6 months this supports continued R&D or strategic investment, cushions operating volatility, and reduces refinancing pressure if cash flows remain uneven.

Healthy Gross Margin (~55% In 2025)Sustained gross margins near 55% indicate structural pricing power and a scalable software cost base. This margin level affords the company room to fund sales and product investment while preserving operating leverage as revenue growth normalizes over the medium term.

Strong Revenue Rebound In 2025A 239% revenue uptick signals meaningful demand recovery or successful commercialization of offerings. If sustainable, this can expand market share and validate product-market fit, enabling higher operating leverage and long-term scale benefits beyond short-term volatility.

Bears Say

Return To Net Loss And Negative Free Cash Flow In 2025Reverting to losses with negative free cash flow depletes internally available funding and raises the likelihood of external financing or cutbacks. Over months this constrains investment, heightens execution risk, and limits the firm’s ability to convert revenue growth into durable profitability.

Material Cash-generation VolatilityRepeated periods of negative operating and free cash flow demonstrate persistent cash-conversion weakness. This variability complicates multi-quarter planning, increases sensitivity to revenue swings, and can force defensive measures that hinder long-term growth initiatives.

Inconsistent Profitability And Margin CompressionShifting from ~9% net margin to a negative margin within a year signals unstable cost structure or execution issues. This inconsistency undermines confidence in sustainable earnings power and suggests management must address structural cost levers to restore durable profitability.

3653 FAQ

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

Morpho, Inc. lowest stock price was ¥757.00 and its highest was ¥1536.00 in the past 12 months.

What is Morpho, Inc.’s market cap?

Morpho, Inc.’s market cap is ¥4.15B.

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

Morpho, Inc.’s upcoming earnings report date is Mar 13, 2026 which is in 24 days.

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

Morpho, Inc. released its earnings results on Dec 12, 2025. The company reported ¥25.34 earnings per share for the quarter, beating the consensus estimate of N/A by ¥25.34.

Is Morpho, Inc. overvalued?

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

Does Morpho, Inc. pay dividends?

Morpho, Inc. does not currently pay dividends.

What is Morpho, Inc.’s EPS estimate?

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

How many shares outstanding does Morpho, Inc. have?

Morpho, Inc. has 5,508,500 shares outstanding.

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

Morpho, Inc. reported an EPS of ¥25.34 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 1.986%.

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

Currently, no hedge funds are holding shares in JP:3653

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

Morpho, Inc.

Morpho, Inc. engages in the research, development, and licensing of artificial intelligence (AI) and image processing technologies in Japan, the United States, China, South Korea, Europe, and internationally. It offers image processing products, such as image stabilization and noise reduction; video stabilization; video generation; video processing software package; noise reduction in video; HDR image generation; DR-corrected image generation; panorama image generation for selfie photography; motion vector detection; photo effect filters library; image super resolution; frame interpolation; cinemagraph; and smooth camera switching for zooming. The company also provides AI products, that includes fast AI inference engine, image enhancement by AI Based segmentation and pixel filtering, pose estimation, bokeh image generation using dual cameras, image classification, object detection, single camera background blur, image segmentation, object tracking, automatic mask generation, automatic wipe generation, and training data for AI development. Its solutions are used in smart devices, automotives, semiconductors, medical products, digital media, and smart city. The company was incorporated in 2004 and is headquartered in Tokyo, Japan.