Revenue RecoveryA ~78% revenue rebound in 2025 demonstrates the company's ability to restore demand and regain commercial momentum after prior declines. Over a multi-month horizon this suggests product-market fit and addressable-market traction that can support scale if operating costs are controlled.

High Gross MarginA sustained gross margin near 71% indicates a structurally profitable revenue mix, likely reflecting scalable software or services and pricing power. This margin profile creates durable potential for operating leverage and long-term profitability if fixed operating expenses are managed.

Sizable Asset BaseA sizable asset base provides strategic optionality: it can support product investment, serve as collateral for financing, and buffer operational shocks. Over the coming months this underpins the company's ability to pursue growth or restructure financing despite near-term earnings weakness.

Bears Say

Persistent Large LossesMulti-year, severe operating and net losses materially erode equity and constrain reinvestment capacity. Unless structural cost reductions or sustained revenue growth continue, these losses make achieving self-sustaining profitability unlikely over a 2–6 month horizon and raise solvency concerns longer term.

Rising LeverageA sharp jump in leverage reduces financial flexibility and increases refinancing and interest expense risk. With continued operating losses, elevated debt magnifies downside risk and limits strategic options like R&D or M&A until profitability or cash flow stabilizes.

Negative Cash GenerationConsistent negative operating and free cash flow forces reliance on external financing and heightens funding risk. This persistent cash burn undermines the company's ability to fund growth internally and increases vulnerability to credit conditions or higher financing costs over the medium term.

4438 FAQ

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

Welby Inc. lowest stock price was ¥264.00 and its highest was ¥558.00 in the past 12 months.

What is Welby Inc.’s market cap?

Welby Inc.’s market cap is ¥2.34B.

When is Welby Inc.’s upcoming earnings report date?

Welby Inc.’s upcoming earnings report date is May 20, 2026 which is in 90 days.

How were Welby Inc.’s earnings last quarter?

Welby Inc. released its earnings results on Feb 13, 2026. The company reported -¥14.98 earnings per share for the quarter, missing the consensus estimate of N/A by -¥14.98.

Is Welby Inc. overvalued?

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

Does Welby Inc. pay dividends?

Welby Inc. does not currently pay dividends.

What is Welby Inc.’s EPS estimate?

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

How many shares outstanding does Welby Inc. have?

Welby Inc. has 8,275,582 shares outstanding.

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

Welby Inc. reported an EPS of -¥14.98 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -0.346%.

Which hedge fund is a major shareholder of Welby Inc.?

Currently, no hedge funds are holding shares in JP:4438

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

Welby Inc.

Welby Inc. provides digital health solutions that help patients to get medical care services. The company offers services in the areas of diabetes mellitus, lifestyle related disease, mental illness, autoimmune disease, neurological disease, rare disease, oncology, and pain. It also engages in the medical data survey business; and operates Welby My Carte platform. The company was incorporated in 2011 and is based in Tokyo, Japan.