Debt-free Balance SheetA debt-free capital structure materially lowers financial risk and preserves strategic optionality. Over 2–6 months this gives the company flexibility to fund operations, pursue restructuring or selective investments without immediate interest burdens, improving resilience while losses persist.

Healthy Gross MarginsMid-to-high 40% gross margins indicate strong underlying unit economics and potential pricing or product advantages. Sustained gross profitability provides a durable cushion that can support margin recovery if operating expenses are controlled or revenue scales, facilitating a path to profitability.

Stable, Modest Revenue GrowthConsistent modest revenue growth (roughly single-digit recent CAGR) demonstrates persistent market demand and some execution capability. Over the medium term this steady top-line trend supports scaling opportunities and gives management time to focus on converting gross margin into operating profit.

Bears Say

Negative Operating & Free Cash FlowSustained negative operating and free cash flow is a structural risk: the business is burning cash rather than funding itself internally. This raises liquidity and execution risk, increases likelihood of external financing or dilution, and constrains investment and strategic flexibility.

Widening Net LossesWorsening net losses reflect that operating costs continually outstrip gross profit. Unless management materially reduces operating expenses or accelerates revenue growth, losses will persist, undermining returns and making a sustainable earnings recovery difficult over the medium term.

Erosion Of Shareholder EquityMeaningful declines in shareholder equity show accumulated deficits and weakening capital base. Even with no debt this erosion limits the company's buffer against shocks, may force dilutive capital raises, and reduces financial flexibility to invest or pursue strategic opportunities long term.

3634 FAQ

What was Sockets Inc.’s price range in the past 12 months?

Sockets Inc. lowest stock price was ¥462.00 and its highest was ¥1013.00 in the past 12 months.

What is Sockets Inc.’s market cap?

Sockets Inc.’s market cap is ¥2.48B.

When is Sockets Inc.’s upcoming earnings report date?

Sockets Inc.’s upcoming earnings report date is May 13, 2026 which is in 86 days.

How were Sockets Inc.’s earnings last quarter?

Sockets Inc. released its earnings results on Feb 06, 2026. The company reported ¥7.47 earnings per share for the quarter, beating the consensus estimate of N/A by ¥7.47.

Is Sockets Inc. overvalued?

According to Wall Street analysts Sockets Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Sockets Inc. pay dividends?

Sockets Inc. pays a Annually dividend of ¥4 which represents an annual dividend yield of 0.42%. See more information on Sockets Inc. dividends here

What is Sockets Inc.’s EPS estimate?

Sockets Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Sockets Inc. have?

Sockets Inc. has 2,477,400 shares outstanding.

What happened to Sockets Inc.’s price movement after its last earnings report?

Sockets Inc. reported an EPS of ¥7.47 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 14.749%.

Which hedge fund is a major shareholder of Sockets Inc.?

Currently, no hedge funds are holding shares in JP:3634

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Sockets Inc.

Sockets Inc. engages in the development and provision of services, applications, and database for Internet platforms. It offers data services, cross-media recommendation, emotional metadata analysis services, specialized search services, integral system development and construction, and database service planning and developing. The company was incorporated in 2000 and is based in Tokyo, Japan.