Quantum Solutions Co.,Ltd. (2338) AI Stock Analysis

• Market Cap: ¥5.07B
• Dividend Yield: N/A
• Average Volume (3M): 273.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 45
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -20.16
• Shares Outstanding: 49,248,592
• 10 Day Avg. Volume: 262,150
• 30 Day Avg. Volume: 273,710
• PEG Ratio: 1.27
• Price to Book (P/B): 114.00
• Price to Sales (P/S): 38.87
• P/FCF Ratio: -52.08
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ¥99.00 ▼(-86.42% Downside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is primarily held down by persistent losses and ongoing cash burn despite strong gross margins and a low-debt balance sheet. Technicals add further pressure due to a pronounced downtrend and weak momentum, while valuation is also constrained by negative earnings and no dividend yield data.

Positive Factors

Very high gross margins

Sustained ~92% gross margins indicate a structurally high-margin business or strong pricing power and low variable costs. That margin profile creates a large runway for operating leverage: if operating expenses are controlled, the company can convert revenue growth into durable profitability over the medium term.

Conservative capital structure (zero debt)

Zero reported debt materially reduces financial risk and interest burden, preserving flexibility to fund growth via equity or low-cost borrowing. A clean balance sheet supports resilience during cash burn periods and enables strategic investments or acquisitions without heavy leverage constraints.

Sharp revenue rebound in FY2025

A strong revenue rebound demonstrates demand recovery and the business's ability to scale sales after a weak year. Coupled with very high gross margins, this suggests the underlying model can drive durable top-line growth, provided management addresses cash conversion and operating losses.

Negative Factors

Persistent net losses

Multi-year negative net margins show the company has not yet converted high gross profit into operating profitability. Persistent losses erode shareholder value, limit internal reinvestment, and necessitate external funding or dilution to sustain operations over the medium term.

Consistent negative operating and free cash flow

Chronic negative operating and free cash flow indicate ongoing cash burn, increasing reliance on external financing or balance sheet reserves. This constrains the firm's ability to fund growth initiatives, increases financing risk, and can pressure capital structure if losses persist.

Volatile equity and negative returns on equity

Volatile equity and persistent negative ROE signal unstable capital base and poor shareholder returns. These issues complicate capital raising, undermine investor confidence, and reflect structural difficulty in generating sustainable returns despite revenue and margin characteristics.

Quantum Solutions Co.,Ltd. Business Overview & Revenue Model

Company Description

Quantum Solutions Co.,Ltd. engages in the system solutions, contents development and distribution, software outsourced development, and eyelash care businesses worldwide. The company engages in system consulting, system integration, software development, and system contract development. It also operates eyelash extension salon, eyelash extension school, and eyelash care business for selling cosmetics. In addition, the company is involved in planning, designing, development, operation, and maintenance activities, as well as EV business. The company was formerly known as Bit One Group Co.,Ltd. and changed its name to Quantum Solutions Co.,Ltd. in August 2021. The company was incorporated in 1999 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Quantum Solutions Co.,Ltd. Financial Statement Overview

Summary

Revenue rebounded sharply and gross margins are very strong, with a low-debt balance sheet. However, the company remains deeply unprofitable with persistent net losses and consistently negative operating/free cash flow, which materially weakens overall financial quality.

Income Statement

Revenue rebounded sharply in FY2025 (+416% YoY) after a weaker FY2024, and gross margins are very strong (FY2025 ~92%). However, profitability remains deeply negative: FY2025 net margin is ~-45% (still a sizable loss), and operating profitability is also negative. While losses narrowed meaningfully versus FY2024, the multi-year pattern is persistent net losses, indicating the business has not yet converted strong gross profit into sustainable earnings.

Balance Sheet

Leverage is low with total debt at zero in the most recent years (and debt-to-equity at 0.0), which reduces financial risk. That said, equity levels have been volatile (very low in FY2024 vs. higher in other years), and returns on equity are consistently negative, reflecting ongoing losses and pressure on shareholder value creation. Overall, the balance sheet looks conservatively financed, but profitability weakness undermines quality.

Cash Flow

Cash generation is a key concern: operating cash flow is negative every year shown, including FY2025 (about -521M), and free cash flow is also consistently negative. While free cash flow tracks net loss closely in several years, the business is still burning cash rather than self-funding operations, which increases reliance on external funding or balance sheet resources over time.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	271.52M	698.09M	205.24M	264.29M	256.51M	245.50M
Gross Profit	209.70M	640.86M	139.31M	177.15M	192.17M	186.39M
EBITDA	-176.82M	-316.06M	-904.92M	-931.65M	-278.55M	-389.11M
Net Income	-530.66M	-317.24M	-902.42M	-954.36M	-280.88M	-392.12M
Balance Sheet
Total Assets	1.66B	324.49M	1.15B	468.70M	1.08B	1.01B
Cash, Cash Equivalents and Short-Term Investments	1.18B	136.13M	137.11M	236.34M	507.85M	792.82M
Total Debt	1.48B	0.00	0.00	0.00	0.00	300.00M
Total Liabilities	1.59B	86.99M	1.13B	72.04M	72.68M	337.99M
Stockholders Equity	67.00M	238.00M	16.68M	396.00M	1.01B	672.00M
Cash Flow
Free Cash Flow	0.00	-520.99M	-662.20M	-379.05M	-471.50M	-272.47M
Operating Cash Flow	0.00	-520.78M	-657.39M	-379.05M	-277.75M	-272.47M
Investing Cash Flow	0.00	-11.81M	-128.74M	-477.41M	-218.75M	-107.77M
Financing Cash Flow	0.00	531.51M	681.45M	583.37M	195.15M	301.32M

Quantum Solutions Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4752	81 Outperform	¥7.15B	8.94	―	3.37%	5.25%	23.64%
2332	80 Outperform	¥8.98B	12.48	―	3.16%	14.02%	2.74%
3799	78 Outperform	¥9.57B	9.65	―	4.16%	4.52%	51.81%
3940	78 Outperform	¥6.72B	16.54	―	2.43%	2.92%	-0.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2338	43 Neutral	¥5.07B	-3.52	―	―	―	―
4056	42 Neutral	¥6.46B	-55.59	―	―	-0.62%	―