Revenue Re-accelerationA 27.8% revenue rebound in 2025 signals renewed demand for the SuRaLa platform and content. Durable top-line momentum across education customers supports scalable subscription/usage revenue, improves leverage on fixed content costs, and underpins longer‑term investment in product and distribution.

Conservative Balance SheetNear‑zero debt materially lowers financial risk and interest burden, giving management flexibility to fund operations, product development, or strategic M&A from internal resources. This resilience supports the company through revenue cyclicality and reduces refinancing and solvency risk over the medium term.

High Gross Margins & FCF ReboundSustained gross margins above 60% indicate software-like economics on content and platform sales, allowing incremental revenue to flow to the bottom line. The 2025 free cash flow rebound shows improving cash conversion, supporting reinvestment in content and reduced reliance on external capital.

Bears Say

Profitability DeteriorationA pronounced fall in operating profitability erodes the company's ability to generate sustainable earnings from revenue. Compressed EBITDA margins suggest rising operating costs or pricing pressure, limiting retained cash for growth and increasing the difficulty of restoring historical return levels absent structural cost or revenue improvements.

Multi-year Margin Erosion & ROE DeclinePersistent margin decline and weakening ROE point to structural challenges—competitive pressure, higher content or delivery costs, or weaker monetization—that reduce long‑term shareholder returns. Recovery of ROE will require sustained margin improvement or faster, durable revenue growth.

Choppy Cash GenerationIrregular cash generation complicates planning and investment. The 2024 FCF trough followed by a 2025 rebound indicates volatility in cash conversion, which raises refinancing and execution risk for multi‑period investments and makes consistent funding of content, sales, or platform improvements less certain.

3998 FAQ

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

SuRaLa Net Co., Ltd. lowest stock price was ¥310.00 and its highest was ¥464.00 in the past 12 months.

What is SuRaLa Net Co., Ltd.’s market cap?

SuRaLa Net Co., Ltd.’s market cap is ¥2.18B.

When is SuRaLa Net Co., Ltd.’s upcoming earnings report date?

SuRaLa Net Co., Ltd.’s upcoming earnings report date is Apr 30, 2026 which is in 71 days.

How were SuRaLa Net Co., Ltd.’s earnings last quarter?

SuRaLa Net Co., Ltd. released its earnings results on Feb 06, 2026. The company reported ¥4.91 earnings per share for the quarter, beating the consensus estimate of N/A by ¥4.91.

Is SuRaLa Net Co., Ltd. overvalued?

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

Does SuRaLa Net Co., Ltd. pay dividends?

SuRaLa Net Co., Ltd. does not currently pay dividends.

What is SuRaLa Net Co., Ltd.’s EPS estimate?

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

How many shares outstanding does SuRaLa Net Co., Ltd. have?

SuRaLa Net Co., Ltd. has 6,694,764 shares outstanding.

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

SuRaLa Net Co., Ltd. reported an EPS of ¥4.91 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 8.455%.

Which hedge fund is a major shareholder of SuRaLa Net Co., Ltd.?

Currently, no hedge funds are holding shares in JP:3998

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

SuRaLa Net Co., Ltd.

SuRaLa Net Co.,Ltd. provides educational services through e-learning in Japan and internationally. It also provides operation consulting, marketing promotion, and Website operation services. The company was incorporated in 2008 and is headquartered in Tokyo, Japan. SuRaLa Net Co.,Ltd. is a subsidiary of FC Education Inc.