Low Leverage / Strong Balance SheetLow reported leverage (debt/equity ≈0.15) and sizable equity provide balance-sheet flexibility to absorb ongoing losses and fund strategic initiatives. This structural buffer reduces near-term refinancing risk, supports investment in products or M&A, and helps the company withstand industry cyclicality.

Positive Operating And Free Cash FlowPositive operating cash flow (~243M) and free cash flow (~136M) indicate the business still converts operations into cash despite accounting losses. Durable cash generation gives runway for product development, client retention investments, and working capital needs while management pursues a path back to profitability.

Resilient Gross MarginsGross margins holding in the low‑30% range show core service and product economics remain viable. Reliable unit economics provide a foundation for operating leverage when revenue stabilizes, enabling margin recovery through cost discipline and scaling of higher-margin services over the medium term.

Bears Say

Deteriorating ProfitabilityA TTM net loss (≈-23% margin) and negative operating profit represent a material swing from prior profitable years. Persistent operating deficits erode retained earnings, constrain reinvestment capacity, and may force restructuring or dilution, threatening the firm’s ability to sustain competitive investments long-term.

Declining Revenue TrendContracting revenue (TTM down ~3% and recent RevenueGrowth ~-21.8%) suggests weaker demand or client churn. Sustained top-line decline reduces operating leverage and makes margin recovery more difficult, limiting the company’s ability to scale its analytics platform and achieve lasting profitability improvements.

Weak Cash Conversion And Negative ROEOperating cash flow covering only ~1/3 of net loss and TTM ROE ≈-14.8% signal weak cash conversion and shareholder value destruction. Continued losses could erode the balance sheet buffer, increase financing needs, and limit the company’s capacity to invest in growth or sustain dividends over the medium term.

3680 FAQ

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

Hotto Link, Inc. lowest stock price was ¥193.00 and its highest was ¥430.00 in the past 12 months.

What is Hotto Link, Inc.’s market cap?

Hotto Link, Inc.’s market cap is ¥3.69B.

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

Hotto Link, Inc.’s upcoming earnings report date is May 08, 2026 which is in 80 days.

How were Hotto Link, Inc.’s earnings last quarter?

Hotto Link, Inc. released its earnings results on Feb 13, 2026. The company reported -¥97.64 earnings per share for the quarter, missing the consensus estimate of N/A by -¥97.64.

Is Hotto Link, Inc. overvalued?

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

Does Hotto Link, Inc. pay dividends?

Hotto Link, Inc. pays a Semiannually dividend of ¥3 which represents an annual dividend yield of 1.17%. See more information on Hotto Link, Inc. dividends here

What is Hotto Link, Inc.’s EPS estimate?

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

How many shares outstanding does Hotto Link, Inc. have?

Hotto Link, Inc. has 15,965,800 shares outstanding.

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

Hotto Link, Inc. reported an EPS of -¥97.64 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -5.242%.

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

Currently, no hedge funds are holding shares in JP:3680

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

Hotto Link, Inc.

Hottolink, Inc. offers social media marketing support that collects, analyzes, and utilizes social big data in Japan. The company provides SNS marketing support, Twitter marketing support, Instagram marketing support, influencer marketing support, post campaign, and creative production. It also engages in the SNS data access rights and investment management business activities. The company was incorporated in 2000 and is headquartered in Tokyo, Japan.