Revenue GrowthConsistent positive revenue growth indicates sustained customer demand and traction in the software application market. Over 2-6 months this supports scaling benefits, revenue base expansion and provides a foundation for margin improvement as fixed costs are absorbed with higher sales.

Improving Cash FlowOperating cash flow turning positive and improving free cash flow suggest better working capital management and operational execution. This durable improvement reduces reliance on external financing, extends runway and supports reinvestment in product and go-to-market initiatives.

Strong Gross MarginA strong gross margin signals efficient cost of goods sold and potential pricing power in its software offerings. This structural advantage gives room to invest in sales and R&D while moving toward profitability if operating expenses are controlled over the medium term.

Bears Say

Persistent Net LossesOngoing net losses erode equity and limit the company’s ability to self-fund growth. Persistently negative profitability undermines return on capital and requires either sustained margin improvement or external financing, raising execution risk over the next several quarters.

High Leverage And Declining EquityRising debt-to-equity and falling shareholder equity increase financial risk and reduce strategic flexibility. Higher leverage raises interest burden and constrains capital allocation, making the business more vulnerable to revenue volatility and limiting long-term investment capacity.

Free Cash Flow Vs Net IncomeWhile free cash flow has improved, the unfavorable FCF-to-net-income relationship reflects that cash generation is occurring alongside accounting losses. If net losses persist, cash conversion may prove insufficient to sustain growth without ongoing external funding, stressing durability.

7359 FAQ

What was Tokyo Communications Group,Inc.’s price range in the past 12 months?

Tokyo Communications Group,Inc. lowest stock price was ¥183.00 and its highest was ¥636.00 in the past 12 months.

What is Tokyo Communications Group,Inc.’s market cap?

Tokyo Communications Group,Inc.’s market cap is ¥2.87B.

When is Tokyo Communications Group,Inc.’s upcoming earnings report date?

Tokyo Communications Group,Inc.’s upcoming earnings report date is May 13, 2026 which is in 86 days.

How were Tokyo Communications Group,Inc.’s earnings last quarter?

Tokyo Communications Group,Inc. released its earnings results on Feb 12, 2026. The company reported ¥7.51 earnings per share for the quarter, beating the consensus estimate of N/A by ¥7.51.

Is Tokyo Communications Group,Inc. overvalued?

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

Does Tokyo Communications Group,Inc. pay dividends?

Tokyo Communications Group,Inc. does not currently pay dividends.

What is Tokyo Communications Group,Inc.’s EPS estimate?

Tokyo Communications Group,Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Tokyo Communications Group,Inc. have?

Tokyo Communications Group,Inc. has 10,074,422 shares outstanding.

What happened to Tokyo Communications Group,Inc.’s price movement after its last earnings report?

Tokyo Communications Group,Inc. reported an EPS of ¥7.51 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -4.638%.

Which hedge fund is a major shareholder of Tokyo Communications Group,Inc.?

Currently, no hedge funds are holding shares in JP:7359

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

Tokyo Communications Group,Inc.

Tokyo Communications Group, Inc. engages in the provision of application and advertising services. It operates through the following segments: Media and Platform Business. The Media Business segment based on a business model that relies primarily on advertising revenue from advertisers, the company operates, plans and develops free smartphone apps, and sells advertising products that utilize ad technology. The Platform Business segment plan and operate communication services, health tech apps, and messaging app services, primarily based on a monthly/pay-as-you-go business model. The company was founded by Yuki Furuya on May 15, 2015 and is headquartered in Tokyo, Japan.