Kushim,Inc. (2345) AI Stock Analysis

• Market Cap: ¥4.27B
• Dividend Yield: N/A
• Average Volume (3M): 647.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 80
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -17.55
• Shares Outstanding: 18,608,732
• 10 Day Avg. Volume: 511,790
• 30 Day Avg. Volume: 647,436
• PEG Ratio: 0.10
• Price to Book (P/B): 10.29
• Price to Sales (P/S): 166.19
• P/FCF Ratio: -6.89
• 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: 47 Neutral
• Price Target: ¥199.00 ▼(-8.72% Downside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is primarily held down by weak financial performance—sharp 2025 revenue deterioration, very large losses, and multi-year negative operating/free cash flow—despite a currently low-debt balance sheet. Technicals provide some support via improving short-term momentum, but valuation remains challenged due to ongoing losses and a negative P/E.

Positive Factors

Recurring SaaS revenue model

Kushim's core subscription-based SaaS model plus consulting and transaction fees creates diversified, repeatable revenue streams. Over months this supports predictable topline and scalable gross margins, enabling investment in product development and customer success if churn and retention are managed.

Conservative latest balance sheet

Reporting zero debt in 2025 materially reduces near-term solvency and refinancing risk, giving management runway to address operating issues. Low leverage preserves flexibility for strategic investments or M&A and lowers fixed financing costs while cash-burn issues are addressed.

Specialized cannabis industry focus

Deep focus on cannabis supply-chain, inventory tracking, and regulatory compliance builds domain expertise and product differentiation. Regulatory complexity in the vertical favors specialized providers, creating potential stickiness and higher switching costs versus generalist software vendors.

Negative Factors

Sharp revenue decline and deepening losses

A collapsing revenue base and much wider losses indicate core demand or pricing problems and weaken the economics of a SaaS model. Sustained margin deterioration constrains reinvestment, forces cost cutting or strategic resets, and undermines the ability to scale profitably over the medium term.

Persistent negative cash generation

Multi-year negative operating and free cash flow signifies ongoing cash burn and reliance on external financing. This limits sustained investment in sales, R&D, and customer success, increases funding risk, and makes it harder to capitalize on the recurring-revenue model until cash generation turns positive.

Volatile capital structure and weak returns

Year-to-year swings in leverage and strongly negative returns on equity reflect inconsistent financial strategy and poor capital allocation. This elevates execution risk, may deter strategic partners or lenders, and signals the company has struggled to convert investments into shareholder value.

Kushim,Inc. Business Overview & Revenue Model

Company Description

Kushim, Inc. engages in the blockchain service, system engineering, and incubation businesses in Japan. It offers development of systems that applied advanced IT technology; research aimed at social implementation of advanced IT technology; blockchain technology research services; and development and sales of educational content related to blockchain technology. The company provides system engineering services including planning, requirements definition, design, testing, and operation and maintenance, as well as investments and loans to corporations and projects. In addition, it undertakes management and various consulting for commercialization, project promotion, and support incubation. Further, the company is involved in the training services for advanced IT engineers, and introduction and dispatch business. The company was formerly known as iStudy Co., Ltd. and changed its name to Kushim, Inc. in May 2020. Kushim, Inc. was incorporated in 1997 and is based in Tokyo, Japan.

How the Company Makes Money

Kushim, Inc. generates revenue primarily through subscription fees for its software-as-a-service (SaaS) platform, which provides users with essential tools for managing their cannabis operations. Key revenue streams include monthly and annual subscription plans, consulting services for implementation and compliance, and transaction fees for integrated payment processing solutions. Additionally, the company may form strategic partnerships with cannabis distributors and cultivation facilities, enhancing its service offerings and expanding its customer base, which further contributes to its earnings.

Kushim,Inc. Financial Statement Overview

Summary

Income statement and cash flow are the major weaknesses: revenue fell sharply in 2025 and losses deepened with heavily negative margins, while operating cash flow and free cash flow have been deeply negative in 2022–2025, indicating sustained cash burn. The balance sheet is less concerning on the latest period with reported zero debt in 2025, but recent years show volatility and returns on equity are strongly negative.

Income Statement

Operating performance has deteriorated sharply. Revenue collapsed in 2025 (annual) versus 2024, and profitability flipped from already-loss-making levels to extremely deep losses, with margins heavily negative. While 2020 and 2022 showed the business can generate positive earnings, results since 2023 indicate a sustained inability to convert revenue into profit, raising concerns about business stability and cost structure.

Balance Sheet

Leverage is mixed but currently looks conservative on the latest period: total debt is reported at zero in 2025 (annual), implying low balance-sheet financial risk at that point. However, the capital structure has been volatile year-to-year (meaningful debt in 2023–2024), and returns on shareholder capital are strongly negative recently, suggesting equity is not being used profitably despite the balance sheet support.

Cash Flow

Cash generation is weak and consistently negative in most years. Operating cash flow and free cash flow are deeply negative in 2022–2025 (annual), indicating ongoing cash burn and potential reliance on external funding. Although free cash flow tracks net losses in recent years (notably 2023–2025), the lack of sustained positive operating cash flow (only 2020 was positive) is a key risk to financial flexibility.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	26.55M	1.61B	962.80M	1.62B	1.62B
Gross Profit	24.68M	638.38M	-558.42M	785.07M	379.21M
EBITDA	-1.36B	-1.66B	-1.25B	854.00M	-253.49M
Net Income	-1.37B	-1.96B	-2.74B	619.02M	-362.70M
Balance Sheet
Total Assets	533.64M	86.54B	61.66B	6.44B	3.79B
Cash, Cash Equivalents and Short-Term Investments	222.84M	78.43B	7.75B	1.17B	1.69B
Total Debt	0.00	1.37B	1.04B	308.83M	369.44M
Total Liabilities	105.01M	85.11B	57.63B	596.04M	728.13M
Stockholders Equity	428.63M	1.43B	4.03B	5.85B	3.07B
Cash Flow
Free Cash Flow	-640.14M	-610.56M	-266.00M	-1.00B	-78.07M
Operating Cash Flow	-639.09M	-607.47M	-200.00M	-999.61M	-49.07M
Investing Cash Flow	-258.15M	-301.27M	612.81M	66.96M	-380.09M
Financing Cash Flow	199.95M	942.78M	-52.76M	354.37M	1.57B

Kushim,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 218.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2345, the sentiment is Positive. The current price of 218 is above the 20-day moving average (MA) of 217.25, below the 50-day MA of 225.12, and below the 200-day MA of 234.45, indicating a neutral trend. The MACD of -1.91 indicates Negative momentum. The RSI at 55.32 is Neutral, neither overbought nor oversold. The STOCH value of 68.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2345.

Kushim,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4477	73 Outperform	¥37.49B	20.04	―	―	27.97%	-5.25%
4397	68 Neutral	¥7.04B	17.46	―	―	11.32%	―
5033	66 Neutral	¥4.93B	13.38	―	―	7.60%	19.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	58 Neutral	¥13.02B	60.03	―	―	14.63%	-760.87%
5027	49 Neutral	¥31.62B	33.52	―	―	20.84%	10.41%
2345	47 Neutral	¥4.27B	-1.07	―	―	―	―