Kushim,Inc. (2345) AI Stock Analysis

• Market Cap: ¥4.53B
• Dividend Yield: N/A
• Average Volume (3M): 647.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• 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: ¥249.00 ▲(14.22% Upside)

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 base

A subscription-driven SaaS model creates recurring revenue and higher customer lifetime value, providing predictable cash flow and opportunities to upsell consulting and transaction services. That structural revenue mix supports stability and planning over the next several quarters.

Niche cannabis compliance focus

Specialization in cannabis supply-chain and compliance addresses a complex, highly regulated niche with higher switching costs. This domain expertise and compliance tooling can create durable customer stickiness and long-term relationships as operators standardize systems.

Conservative reported leverage in 2025

A zero-debt balance at the latest annual period reduces near-term interest and refinancing pressure, preserving liquidity optionality. That conservative leverage position helps the firm weather continued operating losses while pursuing product development or strategic partnerships.

Negative Factors

Persistent negative cash generation

Multi-year negative operating and free cash flow denote structural cash burn, increasing reliance on external funding and reducing financial flexibility. Over a 2–6 month horizon this constrains investment in product, sales, and customer retention, raising solvency risk if funding is tight.

Sharp revenue collapse in 2025

A pronounced year-over-year revenue collapse undermines the SaaS recurring base and indicates deteriorating demand or elevated churn. Reduced recurring revenue weakens unit economics, pressures margins, and makes near-term recovery dependent on successful re-acquisition or new product traction.

Deepening losses and negative margins

Worsening profitability and heavily negative margins signal the business is not converting revenue into sustainable earnings. Persistent deep losses erode equity returns, force dilution through fundraising, and limit the firm's ability to self-fund growth or R&D over the medium term.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	463.70M	26.55M	1.61B	962.80M	1.62B	1.62B
Gross Profit	13.59M	24.68M	638.38M	-558.42M	785.07M	379.21M
EBITDA	-1.29B	-1.36B	-1.66B	-1.25B	854.00M	-253.49M
Net Income	-2.20B	-1.37B	-1.96B	-2.74B	619.02M	-362.70M
Balance Sheet
Total Assets	488.00M	533.64M	86.54B	61.66B	6.44B	3.79B
Cash, Cash Equivalents and Short-Term Investments	244.00M	222.84M	78.43B	7.75B	1.17B	1.69B
Total Debt	0.00	0.00	1.37B	1.04B	308.83M	369.44M
Total Liabilities	58.00M	105.01M	85.11B	57.63B	596.04M	728.13M
Stockholders Equity	430.00M	428.63M	1.43B	4.03B	5.85B	3.07B
Cash Flow
Free Cash Flow	0.00	-640.14M	-610.56M	-266.00M	-1.00B	-78.07M
Operating Cash Flow	0.00	-639.09M	-607.47M	-200.00M	-999.61M	-49.07M
Investing Cash Flow	0.00	-258.15M	-301.27M	612.81M	66.96M	-380.09M
Financing Cash Flow	0.00	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: Positive
• 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 below the 20-day moving average (MA) of 236.45, below the 50-day MA of 224.42, and below the 200-day MA of 234.11, indicating a bullish trend. The MACD of 7.68 indicates Negative momentum. The RSI at 54.00 is Neutral, neither overbought nor oversold. The STOCH value of 48.41 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
5257	75 Outperform	¥3.67B	12.89	―	―	8.61%	-9.25%
4075	67 Neutral	¥4.77B	28.16	―	―	28.63%	551.37%
3917	66 Neutral	¥4.89B	7.62	―	―	7.40%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5134	61 Neutral	¥2.09B	15.01	―	―	29.72%	65.33%
4069	53 Neutral	¥4.96B	41.38	―	―	24.09%	141.68%
2345	47 Neutral	¥4.53B	-1.14	―	―	―	―