L is B Corp. (145A) AI Stock Analysis

• Market Cap: ¥4.31B
• Dividend Yield: N/A
• Average Volume (3M): 52.20K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 1.25
• Revenue Growth: 32.16%
• EPS Growth: -27.33%
• Country: JP
• Employees: 121
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 10.95
• Shares Outstanding: 5,124,800
• 10 Day Avg. Volume: 28,200
• 30 Day Avg. Volume: 52,203
• PEG Ratio: 0.04
• Price to Book (P/B): 2.78
• Price to Sales (P/S): 2.41
• P/FCF Ratio: 30.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 110.7
• Revenue Forecast (FY): ¥2.82B

• Rating: 61 Neutral
• Price Target: ¥814.00 ▼(-18.68% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by improving fundamentals (revenue growth, high gross margins, and better profitability/cash generation), but is held back by a weak technical trend and a relatively high P/E valuation. Rising leverage and historical volatility in profits/cash flows also temper the overall risk-adjusted outlook.

Positive Factors

Revenue growth & high gross margins

Sustained accelerating revenue alongside consistently high gross margins (~59%–65%) supports scalable unit economics and operating leverage. Over 2–6 months this underpins margin resiliency, funds product/market expansion, and makes future profitability less dependent on cutting costs.

Improved cash generation

Operating cash flow and free cash flow swung from negative to meaningfully positive in 2024–2025, with 2025 FCF roughly in line with net income. Durable cash generation enhances capital allocation flexibility, funds growth or debt service, and signals better earnings quality.

Return to sustained profitability

The company moved from deep losses to solid operating profit and net income across 2023–2025, demonstrating business model recovery. Sustainable profitability reduces reliance on external funding, supports reinvestment, and improves strategic optionality over the medium term.

Negative Factors

Rising leverage

Material debt increases and a higher debt-to-equity trajectory raise financial risk. If growth or margins weaken, interest burden and refinancing needs could constrain investment and heighten default risk, reducing balance sheet flexibility over the coming months.

History of volatile cash flows

Cash flow strength is recent; prior multi-year negative operating and free cash flow creates uncertainty about durability. This volatility complicates forecasting, increases the chance of funding shortfalls in a downturn, and weakens confidence in steady capital returns.

Inconsistent margins/earnings

Profitability has rebounded but exhibited inconsistency, with a thin margin in 2024 then recovery in 2025. Such sensitivity to costs and execution means earnings and cash generation could reverse if execution slips or competitive pressure intensifies.

L is B Corp. Business Overview & Revenue Model

Company Description

L is B Corp is engaged in development and provision of on-site DX services centered on business chat “direct” for feed workers.

How the Company Makes Money

L is B Corp. generates revenue primarily through subscription-based models for its software products, offering tiered pricing plans that cater to various business needs. Additionally, the company earns income from licensing fees for its proprietary technology and through professional services such as consulting and implementation support. Key revenue streams include recurring subscriptions, one-time software licenses, and service fees. Strategic partnerships with other tech firms and industry leaders enhance its market reach and drive additional sales, contributing significantly to its earnings.

L is B Corp. Financial Statement Overview

Summary

Strong turnaround: accelerating revenue growth, consistently high gross margins (~59%–65%), and a shift to solid operating profit/net income in 2023–2025. Cash flow also improved notably in 2024–2025. Offsetting this, profitability and cash flows have been volatile historically, and rising debt in 2024–2025 increases risk if growth or margins soften.

Income Statement

Revenue growth is strong over the period, accelerating sharply in 2025, and profitability has improved meaningfully: the company moved from deep losses in 2021–2022 to solid positive operating profit and net income in 2023–2025. Gross margins remain high and fairly stable (~59%–65%), supporting scalability. The main weakness is earnings consistency—net margin was thin in 2024 before rebounding in 2025—suggesting profitability is still sensitive to costs and execution.

Balance Sheet

The balance sheet shows adequate equity backing and asset growth, but leverage has risen recently: debt increased materially in 2024–2025 and debt-to-equity moved higher versus 2024. While the company is no longer in heavy loss mode, higher debt adds financial risk if growth or margins soften. Overall capitalization looks acceptable, but the trajectory in borrowing is the key watch item.

Cash Flow

Cash generation improved significantly: operating cash flow turned strongly positive in 2024–2025 after large outflows in 2021–2023, and free cash flow also swung from negative to meaningfully positive in 2025. Free cash flow in 2025 was roughly in line with net income, indicating earnings quality improved. The primary concern is volatility—recent cash flow strength follows multiple years of negative free cash flow—so durability through a cycle is not yet fully proven.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	514.42M	2.13B	1.59B	1.28B	970.59M	770.87M
Gross Profit	335.40M	1.34B	1.03B	819.98M	568.74M	457.82M
EBITDA	66.74M	218.40M	73.00M	45.17M	-308.12M	-326.68M
Net Income	42.67M	138.85M	13.00M	46.06M	-316.49M	-335.87M
Balance Sheet
Total Assets	2.65B	3.43B	2.71B	1.32B	1.28B	1.32B
Cash, Cash Equivalents and Short-Term Investments	1.75B	1.78B	1.94B	1.01B	1.09B	1.08B
Total Debt	707.91M	1.24B	758.00M	525.40M	542.90M	324.16M
Total Liabilities	908.57M	1.58B	999.41M	684.40M	689.27M	408.59M
Stockholders Equity	1.75B	1.85B	1.71B	636.23M	590.18M	906.67M
Cash Flow
Free Cash Flow	48.65M	170.83M	-8.00M	-56.76M	-210.66M	-490.28M
Operating Cash Flow	50.48M	178.23M	27.82M	-12.07M	-157.63M	-470.76M
Investing Cash Flow	-159.92M	-1.08B	-378.16M	-49.14M	-53.02M	-20.14M
Financing Cash Flow	-28.89M	443.67M	1.21B	-17.51M	218.74M	1.23B

L is B Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1001.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:145A, the sentiment is Negative. The current price of 1001 is above the 20-day moving average (MA) of 918.00, above the 50-day MA of 998.28, and below the 200-day MA of 1042.62, indicating a bearish trend. The MACD of -57.33 indicates Positive momentum. The RSI at 35.74 is Neutral, neither overbought nor oversold. The STOCH value of 44.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:145A.

L is B Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3623	79 Outperform	¥7.20B	17.79	―	1.18%	6.95%	-9.62%
3927	71 Outperform	¥4.58B	10.86	―	―	48.76%	978.31%
3858	70 Outperform	¥3.91B	-32.53	―	―	4.78%	-234.94%
4493	67 Neutral	¥16.26B	20.22	―	0.17%	31.39%	13.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
145A	61 Neutral	¥4.31B	31.04	―	―	32.16%	-27.33%
4488	58 Neutral	¥9.09B	-22.78	―	―	7.00%	-244.58%