Rapid Revenue GrowthSustained ~130% YoY revenue growth in FY2025 indicates strong demand traction and expanding market adoption. Over 2-6 months this supports scaling opportunities, operational leverage and the potential to absorb fixed costs if the company sustains top-line momentum.

Improving Gross MarginA rise in gross margin to ~52% reflects improving unit economics and pricing or cost efficiencies. Higher gross margins are durable levers that enhance the path to profitability by increasing the portion of revenue available to cover fixed operating costs long-term.

Low Financial LeverageDebt-to-equity near 0.12 signals limited financial leverage and lower interest burden, giving the company flexibility to finance growth or endure cash shortfalls. This conservative capital structure reduces near-term solvency risk and supports strategic optionality.

Bears Say

Ongoing UnprofitabilityPersistent operating and net losses indicate the core business still fails to cover costs. Continued unprofitability reduces retained earnings, limits reinvestment capacity and necessitates external funding or material margin expansion to achieve sustainable returns.

Negative Operating And Free Cash FlowMeaningfully negative operating and free cash flow show the business is consuming cash rather than self-funding growth. Over months this raises runway and refinancing risk, may force dilutive capital raises, and constrains investments needed to scale sustainably.

Negative Returns On Equity / Capital PressureNegative ROE signals the company is destroying shareholder capital. If losses persist, equity erosion may occur, increasing the likelihood of future fundraising at unfavorable terms and reducing long-term shareholder value creation potential.

3840 FAQ

What was PATH Corporation’s price range in the past 12 months?

PATH Corporation lowest stock price was ¥51.00 and its highest was ¥130.00 in the past 12 months.

What is PATH Corporation’s market cap?

PATH Corporation’s market cap is ¥4.32B.

When is PATH Corporation’s upcoming earnings report date?

PATH Corporation’s upcoming earnings report date is May 20, 2026 which is in 91 days.

How were PATH Corporation’s earnings last quarter?

PATH Corporation released its earnings results on Feb 13, 2026. The company reported -¥2.587 earnings per share for the quarter, missing the consensus estimate of N/A by -¥2.587.

Is PATH Corporation overvalued?

According to Wall Street analysts PATH Corporation’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does PATH Corporation pay dividends?

PATH Corporation does not currently pay dividends.

What is PATH Corporation’s EPS estimate?

PATH Corporation’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does PATH Corporation have?

PATH Corporation has 80,085,040 shares outstanding.

What happened to PATH Corporation’s price movement after its last earnings report?

PATH Corporation reported an EPS of -¥2.587 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -1.818%.

Which hedge fund is a major shareholder of PATH Corporation?

Currently, no hedge funds are holding shares in JP:3840

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

PATH Corporation

Path Corporation primarily engages in e-commerce business in Japan. The company offers cosmetics, beauty, and wellness products. It is also involved in the research, development, cultivation of microalgae and extracts; manufactures and sells human-derived cosmetic raw materials; and planning, development, and mail-order distribution of lifestyle products and beauty and health-related products. The company was incorporated in 1990 and is headquartered in Tokyo, Japan.