KLab Inc. (JP:3656)
:3656
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KLab Inc.
(3656)
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Rating:52Neutral
Price Target:
¥349.00
▼(-7.67% Downside)
Action:ReiteratedDate:03/12/26
The score is held down primarily by weak financial performance driven by multi-year revenue declines, steep losses, and ongoing cash burn. This is partially offset by strong technical momentum (price well above major moving averages with a positive MACD). Valuation remains constrained because the company is loss-making (negative P/E) and no dividend yield is provided.
Positive Factors
Low leverage and equity cushion
Very low debt and a ¥10.3B equity buffer materially reduce refinancing and short-term solvency risk, giving management time to execute turnarounds or fund live-ops. This structural balance-sheet strength supports strategic flexibility despite operating losses.
Negative Factors
Multi-year revenue decline and margin compression
Sustained revenue shrinkage and falling gross margins indicate weakening product demand and reduced pricing/monetization power. This structurally undermines operating leverage and makes it harder to cover fixed costs, prolonging recovery and pressuring long-term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and equity cushion
Very low debt and a ¥10.3B equity buffer materially reduce refinancing and short-term solvency risk, giving management time to execute turnarounds or fund live-ops. This structural balance-sheet strength supports strategic flexibility despite operating losses.
Read all positive factors
KLab Inc. (3656) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥26.98B
Dividend YieldN/A
Average Volume (3M)13.13M
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth-14.71%
EPS Growth-38.87%
CountryJP
Employees459
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-0.98
Shares Outstanding78,604,200
10 Day Avg. Volume5,041,080
30 Day Avg. Volume13,126,573
Financial Highlights & Ratios
PEG Ratio-0.30
Price to Book (P/B)2.08
Price to Sales (P/S)3.13
P/FCF Ratio-10.82
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)154.64
Revenue Forecast (FY)¥31.27B
KLab Inc. Business Overview & Revenue Model
Company Description
KLab Inc., together with its subsidiaries, plans, develops, operates, and publishes online mobile games worldwide. The company offers game titles, such as BLEACH Brave Souls, BLEACH Soul Rising, Tales of Crestria, Captain Tsubasa: Dream Team, Love...
How the Company Makes Money
KLab primarily makes money from its mobile games through in-app purchases (microtransactions) within free-to-play titles. Revenue is generated when players buy virtual currency or digital items (e.g., character draws/gacha-style mechanics, boosts,...
KLab Inc. Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
58
Neutral
Cash Flow
21
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.84B | 6.86B | 8.31B | 10.72B | 16.88B | 23.90B |
| Gross Profit | 1.30B | 830.54M | 1.13B | 1.75B | 3.02B | 2.72B |
| EBITDA | -808.16M | -1.24B | -1.15B | -801.92M | -223.09M | -357.18M |
| Net Income | -6.19B | -4.18B | -2.78B | -1.82B | -541.92M | -3.47B |
Balance Sheet | ||||||
| Total Assets | 10.94B | 13.27B | 16.11B | 17.96B | 20.97B | 18.81B |
| Cash, Cash Equivalents and Short-Term Investments | 1.84B | 5.21B | 1.61B | 2.21B | 6.02B | 4.75B |
| Total Debt | 1.13B | 332.28M | 2.22B | 3.18B | 3.51B | 1.00B |
| Total Liabilities | 4.08B | 2.97B | 5.74B | 6.25B | 7.82B | 6.00B |
| Stockholders Equity | 6.86B | 10.30B | 10.37B | 11.71B | 13.15B | 12.81B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -1.98B | -138.22M | -1.53B | 0.00 | 0.00 |
| Operating Cash Flow | 0.00 | -1.80B | -138.22M | -1.53B | -186.97M | -1.28B |
| Investing Cash Flow | 0.00 | 2.48B | -1.05B | -2.33B | -1.36B | -1.93B |
| Financing Cash Flow | 0.00 | 2.92B | 555.11M | -66.94M | 3.54B | -1.04B |
KLab Inc. Technical Analysis
Neutral
378.00
Price Trends
346.50
Negative
321.40
Positive
239.46
Positive
Market Momentum
11.40
Positive
45.50
Neutral
20.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3656, the sentiment is Neutral. The current price of 378 is above the 20-day moving average (MA) of 365.80, above the 50-day MA of 346.50, and above the 200-day MA of 239.46, indicating a neutral trend. The MACD of 11.40 indicates Positive momentum. The RSI at 45.50 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3656.
KLab Inc. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥276.60B | -11.40 | 17.98% | 2.52% | 34.16% | ― | |
69 Neutral | ¥170.81B | 7.96 | 10.05% | 4.61% | 1.14% | 77.07% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | ¥41.75B | 9.53 | ― | 4.06% | -15.30% | 39.61% | |
54 Neutral | ¥65.19B | 111.53 | 1.59% | 2.09% | -2.61% | 116.80% | |
52 Neutral | ¥26.98B | -5.14 | ― | ― | -14.71% | -38.87% | |
46 Neutral | ¥17.15B | 9.33 | ― | ― | -37.68% | ― |
* Communication Services Sector Average
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KLab Inc. Corporate Events
KLab Expands AI‑Driven Bitcoin and Gold Treasury Strategy
Mar 2, 2026
KLab Inc. disclosed additional purchases of Bitcoin and a physically backed domestic gold ETF made between February 24 and 27, 2026, bringing its holdings to 51.90737 BTC and 20,331 gold units with an almost equal allocation between the two assets...
KLab Expands Bitcoin and Gold Holdings Under AI-Driven Treasury Strategy
Feb 24, 2026
KLab Inc. disclosed that it has further increased its holdings of Bitcoin and gold ETFs between February 16 and 20, 2026, purchasing about ¥120 million in Bitcoin and roughly ¥81 million in domestically stored physical gold ETFs. As of F...
KLab Moves to Broaden Business Scope Into AI, Digital Assets and Fintech
Feb 18, 2026
KLab Inc. plans to revise its Articles of Incorporation to broaden its stated business purposes, reflecting a strategic move to diversify beyond its existing education-related technology operations. The updated objectives add activities such as ma...
KLab Expands AI-Driven Bitcoin and Gold Treasury Holdings Despite Valuation Losses
Feb 16, 2026
KLab Inc. disclosed additional purchases of Bitcoin and gold ETFs between February 9 and 13, 2026, acquiring 11.67 BTC and 3,384 units of a physically backed gold ETF for roughly ¥120.5 million and ¥81.7 million, respectively. As of Febr...
KLab Partners with MUSCAT GROUP to Expand AI-Driven Brand Business in Middle East
Feb 13, 2026
KLab Inc., a Japanese digital entertainment and AI creative solutions provider, is deepening its strategic push into the Middle East by leveraging capital and advisory ties with UAE investors and partners to build a regional marketing and business...
KLab Books Extraordinary Gains and Heavy Impairments as Revenue Falls in FY2025
Feb 12, 2026
KLab Inc. reported that in the fourth quarter of fiscal 2025 it booked extraordinary income tied to cost-cutting moves, including a ¥209 million support grant related to the downsizing and relocation of its head office. At the same time, it r...
KLab Widens FY2025 Loss as Revenue Falls, Withholds FY2026 Outlook
Feb 12, 2026
KLab Inc., a Tokyo-listed mobile and online game developer, reported continued losses for the fiscal year ended December 31, 2025, with consolidated revenue falling 17.5% to ¥6.86 billion and a widened net loss attributable to owners of the p...
KLab to Acquire Stake in AI Startup I’mbesideyou and Forge Broad Partnership
Feb 10, 2026
KLab Inc. has agreed to acquire shares in AI startup I’mbesideyou Inc. from its president and other shareholders, while simultaneously entering a business partnership to deepen technological collaboration in AI development. The move aims to ...
KLab Expands AI-Guided Bitcoin and Gold Treasury Strategy with Fresh Gold Purchases
Feb 9, 2026
KLab Inc. has expanded its alternative asset holdings by purchasing 3,450 units of a physically backed domestic gold ETF between February 2 and 6, 2026, for about ¥81.8 million, bringing its total positions to 22.45828 BTC and 11,635 gold uni...
KLab Ends Development of EA SPORTS FC Tactical, Sees Limited Financial Impact
Feb 6, 2026
KLab Inc. has decided to discontinue development of its soccer simulation game EA SPORTS FC TACTICAL, a project it had positioned as a key pillar of its business in partnership with U.S. publisher Electronic Arts. Following discussions with EA, th...
KLab Expands AI-Driven Bitcoin and Gold Treasury Holdings Under Dual Gold Strategy
Feb 2, 2026
KLab Inc. disclosed that it has continued implementing its “Dual Gold Treasury Strategy” by purchasing additional Bitcoin and Japan-listed physical gold ETF units between January 28 and 30, 2026, spending about ¥128 million on 9.6...
KLab Secures Compliance With TSE Prime Market Listing Criteria
Jan 22, 2026
KLab Inc. announced that the Tokyo Stock Exchange has officially confirmed the company’s compliance with all Prime Market listing maintenance criteria related to tradable shares as of December 31, 2025. Over the past three years, KLab has su...
KLab Regains Compliance With TSE Prime Listing Criteria as New Businesses Lift Market Cap
Jan 13, 2026
KLab Inc. announced that, based on its shareholder register as of December 31, 2025, its tradable share market capitalization now meets the Tokyo Stock Exchange’s criteria for maintaining a Prime Market listing, following a period in which i...
KLab Finalizes Terms for Performance-Linked Stock Options to Executives and Staff
Dec 26, 2025
KLab Inc. has finalized the terms for its 24th series of stock acquisition rights, a paid-in stock option program tied to market capitalization and performance targets, to be granted to directors and selected employees. The issuance comprises 20,0...
KLab Signs MoU with UAE’s Century Financial to Bolster Middle East IR Efforts
Dec 26, 2025
KLab Inc. has signed a Memorandum of Understanding with United Arab Emirates-based Century Financial Consultancy LLC to promote investor relations activities and explore business collaboration in both the UAE and Japanese markets, with a broader f...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.