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

• Market Cap: ¥10.14B
• Dividend Yield: N/A
• Average Volume (3M): 273.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• 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: 42 Neutral
• Price Target: ¥198.00 ▼(-72.84% Downside)

The score is primarily constrained by persistent losses and continued cash burn despite strong gross margins and a FY2025 revenue rebound. Technicals add further pressure with the stock below major moving averages and weak momentum. Valuation is also penalized because losses drive a negative P/E and there is no dividend yield data.

Positive Factors

Very high gross margins

Gross margins near 92% indicate very favorable unit economics and a business with largely scalable cost structure. High gross profit per sale provides a durable buffer to fund R&D and sales investment as revenue scales, improving odds of eventual operating leverage if fixed costs are controlled.

Sharp FY2025 revenue rebound

A strong, sustained revenue rebound of +416% signals renewed customer traction or successful commercial execution. This recovery provides a larger revenue base to spread fixed costs, improving prospects for margin expansion and making future scale-driven improvement in profitability more attainable.

Zero reported debt (conservative financing)

Having no debt materially reduces insolvency and interest burden risk, giving management flexibility to finance growth by equity or internal resources. This conservative capital structure is a durable strength in downturns and supports strategic options without near-term fixed financing obligations.

Negative Factors

Persistent multi-year net losses

A recurring multi-year pattern of net losses and a FY2025 net margin around -45% indicate the company has not converted strong gross profit into sustainable earnings. Persistent unprofitability erodes retained capital, pressures returns, and makes long-term viability dependent on continued external funding or decisive cost transformation.

Consistent negative operating cash flow

Negative operating cash flow each year, including about -521M in FY2025, shows the business is burning cash rather than self-funding operations. This structural cash burn raises reliance on outside financing, shortens runway for strategic initiatives, and increases dilution or refinancing risk over the medium term.

Volatile equity and negative returns on equity

Volatile equity and persistently negative ROE reflect poor capital efficiency and recurring losses that undermine shareholder value. This weak return profile makes attracting long-term equity capital harder and signals structural challenges in converting investments into profitable growth.

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

Despite a sharp FY2025 revenue rebound and very strong gross margins (~92%), the company remains deeply unprofitable (FY2025 net margin ~-45%) with a multi-year pattern of losses. The balance sheet is conservatively financed with zero debt, but consistently negative returns and recurring negative operating and free cash flow (FY2025 OCF about -521M) materially weaken 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
2359	80 Outperform	¥32.16B	11.35	―	2.93%	2.11%	5.55%
4396	76 Outperform	¥26.87B	17.89	―	1.70%	22.25%	31.88%
3788	76 Outperform	¥25.01B	24.84	―	1.50%	7.83%	49.73%
3393	74 Outperform	¥27.11B	14.03	―	4.36%	12.32%	10.42%
6050	69 Neutral	¥18.86B	24.22	―	2.13%	-0.62%	-11.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2338	42 Neutral	¥10.14B	-7.04	―	―	―	―