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

• Market Cap: ¥7.68B
• Dividend Yield: N/A
• Average Volume (3M): 273.71K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.04
• 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: 44 Neutral
• Price Target: ¥151.00 ▼(-79.29% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is primarily held back by persistent operating losses and consistent negative operating/free cash flow (ongoing cash burn), despite strong recent revenue rebound and high gross margins. Technicals suggest only a modest short-term recovery within a broader downtrend, and valuation is constrained by negative earnings and no stated dividend yield.

Positive Factors

Revenue rebound

A sharp 2025 revenue rebound signals renewed product-market traction and demand recovery. Sustained top-line growth provides the scale needed to absorb fixed costs, supports operational leverage if management controls SG&A, and creates a platform for durable margin improvement over months.

High gross margins

Very high gross margins indicate strong unit economics, pricing power, or low direct costs. This structural advantage gives the firm headroom to invest in growth or cover overheads, making it materially easier to reach profitability as revenue scales over the medium term.

Conservative capital structure

Zero reported debt and materially improved equity in 2025 reduce solvency risk and enhance financial flexibility. A conservative balance sheet lengthens runway during cash burn, enables access to funding on better terms, and supports strategic choices without immediate debt pressure.

Negative Factors

Persistent operating losses

Large, persistent operating losses and negative net margins show the business currently fails to convert revenue into profit. This undermines internal funding capacity, increases reliance on external financing, and requires sustained operational change to achieve durable profitability.

Consistent negative cash flow

Operating and free cash flow are negative each year, signaling ongoing cash burn rather than self-funded growth. Persistent negative cash generation shortens runway, forces reliance on external capital, and constrains investments needed to scale the business sustainably.

Cost structure not scaled

Despite revenue recovery and high gross margins, fixed and operating expenses remain too high relative to sales. Without structural cost reductions or efficiency improvements, the company is unlikely to translate top-line gains into sustainable operating profits over the medium term.

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.

Quantum Solutions Co.,Ltd. Financial Statement Overview

Summary

Revenue rebounded strongly and gross margin is very high, but the company remains deeply unprofitable with large operating losses and negative net margins. Cash flow is a major concern: operating and free cash flow are negative every year, indicating persistent cash burn despite a low-debt balance sheet.

Income Statement

Revenue rebounded strongly in 2025 (annual revenue up sharply versus 2024), and gross margin improved to a very high level, indicating solid pricing or cost control at the gross profit line. However, the business remains deeply unprofitable: operating losses are large and persistent across all years, and net margins are negative throughout, which points to a cost structure that is not yet scaled to the current revenue base. Overall, the trajectory shows top-line recovery but continued inability to convert revenue into earnings.

Balance Sheet

Leverage is very conservative: total debt is zero in the most recent years (and debt-to-equity is effectively nil), which reduces solvency risk. Equity improved materially in 2025 versus 2024, suggesting balance-sheet repair, but profitability on equity remains negative due to continuing net losses. Total assets also fluctuated significantly year to year, implying some balance-sheet volatility even if headline leverage is low.

Cash Flow

Cash generation is weak: operating cash flow and free cash flow are negative in every reported year, including 2025, indicating ongoing cash burn rather than self-funding operations. While cash flow losses generally track net losses (free cash flow roughly in line with net income in several years), the consistent negative operating cash flow suggests the company likely relies on external funding or balance-sheet resources to sustain operations.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	272.38M	698.09M	205.24M	264.29M	256.51M	245.50M
Gross Profit	211.02M	640.86M	139.31M	177.15M	192.17M	186.39M
EBITDA	-536.68M	-477.02M	-941.46M	-384.59M	-360.26M	-378.27M
Net Income	-531.08M	-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	1.55B	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	67.47M	238.00M	16.68M	396.00M	1.01B	673.11M
Cash Flow
Free Cash Flow	0.00	-520.99M	-659.43M	-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
2332	80 Outperform	¥7.84B	9.80	―	3.16%	14.02%	2.74%
4752	80 Outperform	¥6.91B	10.46	―	3.37%	5.25%	23.64%
3940	78 Outperform	¥6.12B	14.84	―	2.43%	2.92%	-0.94%
3799	68 Neutral	¥9.02B	15.16	―	4.16%	4.52%	51.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2338	44 Neutral	¥7.68B	-5.25	―	―	―	―
4056	43 Neutral	¥5.81B	-57.57	―	―	-0.62%	―