Low Leverage / Strong Equity PositionA high equity ratio and low debt profile provide durable financial flexibility, reducing bankruptcy risk and enabling the firm to fund R&D, customer implementations, or strategic partnerships without relying on expensive external financing. This resilience supports multi‑quarter investment and contract stability.

Recurring Subscription Revenue ModelSubscription-based cloud services create predictable, recurring cash flows and higher customer lifetime value, improving forecasting and enabling scalable margin expansion over time. Coupled with consulting and license sales, this mix supports upsell and cross-sell opportunities that strengthen revenue durability.

Stable Gross Profit MarginStable gross margins indicate core product economics and pricing power are intact, suggesting operating leverage can translate revenue recovery into profit improvements. If top-line stabilizes, the company can convert fixed cost absorption into sustainable operating profitability over several quarters.

Bears Say

Ongoing Negative ProfitabilityPersistent negative EBIT and net losses erode retained earnings and limit reinvestment capacity. Continued unprofitability constrains strategic flexibility, weakens investor confidence, and makes it harder to scale sales and R&D sustainably without either margin improvement or durable revenue growth.

Inconsistent And Negative Cash GenerationVolatile operating cash flow and negative free cash flow undermine the company’s ability to self-fund growth, service obligations, or absorb cyclicality. Over a multi‑quarter horizon this increases reliance on external capital and raises execution risk for product rollouts and customer delivery.

Revenue Decline And Shrinking EquityA multi‑year revenue decline paired with falling stockholders' equity signals structural demand or execution challenges. This pressures margins, reduces scale benefits, and produces negative ROE, making it harder to regain growth momentum without a clear strategic turnaround or new market traction.

4814 FAQ

What was Nextware Ltd.’s price range in the past 12 months?

Nextware Ltd. lowest stock price was ¥123.00 and its highest was ¥314.00 in the past 12 months.

What is Nextware Ltd.’s market cap?

Nextware Ltd.’s market cap is ¥2.52B.

When is Nextware Ltd.’s upcoming earnings report date?

Nextware Ltd.’s upcoming earnings report date is May 18, 2026 which is in 87 days.

How were Nextware Ltd.’s earnings last quarter?

Nextware Ltd. released its earnings results on Feb 13, 2026. The company reported -¥3.229 earnings per share for the quarter, missing the consensus estimate of N/A by -¥3.229.

Is Nextware Ltd. overvalued?

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

Does Nextware Ltd. pay dividends?

Nextware Ltd. pays a Annually dividend of ¥2 which represents an annual dividend yield of N/A. See more information on Nextware Ltd. dividends here

What is Nextware Ltd.’s EPS estimate?

Nextware Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Nextware Ltd. have?

Nextware Ltd. has 13,015,222 shares outstanding.

What happened to Nextware Ltd.’s price movement after its last earnings report?

Nextware Ltd. reported an EPS of -¥3.229 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -5.263%.

Which hedge fund is a major shareholder of Nextware Ltd.?

Currently, no hedge funds are holding shares in JP:4814

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

Nextware Ltd.

Nextware Ltd. provides IT solutions in Japan. The company operates through Solutions Business and Entertainment Business segments. It is also involved in the computer system design and software development activities; buying, importing/exporting, selling, and leasing of computers and its peripherals. In addition, the company engages in operational management and support of computer systems; and computer system consulting services. Further, it provides consulting management, events planning and management, and non-life insurance agency businesses. Additionally, the company offers digital content development and distribution services. Nextware Ltd. was incorporated in 1990 and is headquartered in Osaka, Japan.