KLab Inc. (3656) AI Stock Analysis

• Market Cap: ¥12.61B
• Dividend Yield: N/A
• Average Volume (3M): 13.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: -14.71%
• EPS Growth: -38.87%
• Country: JP
• Employees: 459
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 18.41
• Shares Outstanding: 60,792,300
• 10 Day Avg. Volume: 5,041,080
• 30 Day Avg. Volume: 13,126,573
• PEG Ratio: -0.07
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.93
• P/FCF Ratio: -3.75
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ¥240.00 ▼(-4.00% Downside)

KLab Inc.'s overall stock score is primarily impacted by its challenging financial performance, with declining revenues and negative cash flows posing significant risks. While technical analysis shows a positive trend, the valuation remains unattractive due to the company's unprofitability. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Strong Equity Position

A strong equity position with moderate leverage indicates financial stability, providing a cushion against operational losses and potential for future investments.

Healthy Capital Structure

A healthy capital structure with a high equity ratio enhances financial resilience, allowing the company to withstand market fluctuations and invest in growth opportunities.

Global Audience Engagement

Leveraging popular franchises for global audiences ensures sustained engagement and potential revenue streams, strengthening market position and brand recognition.

Negative Factors

Declining Revenue

A consistent decline in revenue indicates challenges in market competitiveness and product appeal, threatening long-term growth and financial health.

Persistent Losses

Ongoing losses and negative margins highlight operational inefficiencies and cost pressures, undermining profitability and sustainability.

Negative Cash Flow

Negative cash flow generation limits financial flexibility, constraining the company's ability to invest in growth and manage liabilities effectively.

KLab Inc. Business Overview & Revenue Model

Company Description

KLab Inc. is a Tokyo-based mobile game development company primarily focused on creating and publishing mobile games. Founded in 2000, KLab operates in the mobile entertainment sector, specializing in games that are often tied to popular anime and manga franchises. The company's portfolio includes titles such as 'Love Live! School Idol Festival' and 'Bleach: Brave Souls,' catering to a global audience with engaging gameplay and rich, immersive content.

How the Company Makes Money

KLab Inc. generates revenue primarily through in-app purchases within its mobile games, where players can buy virtual goods, characters, and enhancements to improve their gaming experience. This freemium model allows users to download games for free while monetizing through optional purchases. Additionally, KLab earns revenue from partnerships with anime and media franchises, leveraging licensing agreements that enhance game visibility and player engagement. Furthermore, the company may also benefit from advertising revenue, event sponsorships, and merchandise sales associated with its popular game titles.

KLab Inc. Financial Statement Overview

Summary

KLab Inc. faces substantial financial challenges, with declining revenues, persistent losses, and negative cash flows. Despite a strong equity base, the ongoing operational losses and cash flow issues pose significant risks. The company needs to address its revenue decline and improve operational efficiency to stabilize and enhance its financial health.

Income Statement

KLab Inc. has experienced a significant decline in total revenue over the past five years, from JPY 33.95 billion in 2020 to JPY 8.31 billion in 2024. The company has also faced persistent losses, with negative net income and EBIT margins, indicating challenges in achieving profitability. The gross profit margin has decreased significantly from 20.6% in 2020 to 13.6% in 2024, reflecting cost pressures and declining sales efficiency.

Balance Sheet

The company's balance sheet shows a relatively strong equity position, with a debt-to-equity ratio of 0.21 in 2024, which indicates moderate leverage. However, equity has decreased over the years, reflecting accumulated losses. The equity ratio remains healthy at 65.7%, suggesting a strong capital structure despite the financial challenges.

Cash Flow

KLab Inc. has been generating negative free cash flow consistently, with significant operating cash outflows and no substantial capital expenditures to offset these losses. The operating cash flow to net income ratio remains below 1, indicating a lack of cash flow generation relative to reported losses. The free cash flow to net income ratio also highlights the inability to convert income into cash flow, signaling liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.84B	8.31B	10.72B	16.88B	23.90B	33.95B
Gross Profit	1.31B	1.13B	1.75B	3.02B	2.72B	6.99B
EBITDA	-5.11B	-1.94B	-1.21B	-33.52M	-1.92B	2.89B
Net Income	-6.19B	-2.78B	-1.82B	-541.92M	-3.47B	767.18M
Balance Sheet
Total Assets	10.94B	15.78B	17.75B	20.86B	18.71B	23.49B
Cash, Cash Equivalents and Short-Term Investments	1.84B	1.61B	2.21B	6.02B	4.75B	8.62B
Total Debt	1.13B	2.22B	3.18B	3.51B	1.00B	1.75B
Total Liabilities	4.08B	5.41B	6.05B	7.71B	5.90B	6.91B
Stockholders Equity	6.86B	10.37B	11.71B	13.15B	12.81B	16.58B
Cash Flow
Free Cash Flow	0.00	-2.06B	-4.36B	-2.84B	-2.73B	3.03B
Operating Cash Flow	0.00	-138.22M	-1.53B	-186.97M	-1.28B	3.98B
Investing Cash Flow	0.00	-1.05B	-2.33B	-1.36B	-1.93B	-2.34B
Financing Cash Flow	0.00	555.11M	-66.94M	3.54B	-1.04B	318.34M

KLab Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 250.00
• 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:3656, the sentiment is Positive. The current price of 250 is above the 20-day moving average (MA) of 227.95, above the 50-day MA of 224.18, and above the 200-day MA of 154.29, indicating a bullish trend. The MACD of 7.28 indicates Negative momentum. The RSI at 58.12 is Neutral, neither overbought nor oversold. The STOCH value of 71.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3656.

KLab Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3723	68 Neutral	¥15.20B	23.09	―	1.33%	3.50%	6.04%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3656	51 Neutral	¥12.61B	-1.73	―	―	-14.71%	-38.87%
3911	48 Neutral	¥10.23B	5.66	―	―	11.15%	―
3758	46 Neutral	¥6.10B	-32.85	―	1.69%	-22.98%	83.75%
3903	46 Neutral	¥21.91B	6.25	―	―	-39.08%	―
3793	42 Neutral	¥13.29B	-5.55	―	―	93.85%	-216.24%

KLab Inc. Corporate Events

KLab Inc. Completes Large-Scale Stock Acquisition Rights Exercise

KLab Inc. announced the completion of the large-scale exercise of its 19th series of Stock Acquisition Rights, issued in April 2024. This exercise, which concluded in November 2025, involved the issuance of 2,289,900 shares, representing 22.67% of the total issued rights. The successful completion of this exercise reflects the company’s strategic financial maneuvers and could potentially impact its market positioning and shareholder value.

The most recent analyst rating on (JP:3656) stock is a Hold with a Yen230.00 price target. To see the full list of analyst forecasts on KLab Inc. stock, see the JP:3656 Stock Forecast page.

KLab Inc. Reports Revenue Decline and Strategic Adjustments in Q3 FY2025

KLab Inc. reported a decline in revenue and a significant loss for the third quarter of FY2025, with revenue dropping by 18.6% compared to the same period last year. The company also noted changes in its subsidiaries and adjustments in accounting policies, indicating ongoing strategic shifts and challenges in its financial performance.

The most recent analyst rating on (JP:3656) stock is a Hold with a Yen230.00 price target. To see the full list of analyst forecasts on KLab Inc. stock, see the JP:3656 Stock Forecast page.

KLab Inc. Diversifies with Bitcoin Investment

KLab Inc. has completed a purchase of bitcoin as part of its management strategy to diversify and preserve long-term assets. This move reflects the company’s intention to explore crypto assets and blockchain technology, despite the inherent risks, and could impact its financial results based on market value assessments.

The most recent analyst rating on (JP:3656) stock is a Hold with a Yen230.00 price target. To see the full list of analyst forecasts on KLab Inc. stock, see the JP:3656 Stock Forecast page.

KLab Inc. Grants Exercise Permission for Stock Acquisition Rights

KLab Inc. has granted Macquarie Bank Limited permission to exercise its 19th Stock Acquisition Rights, which were issued in April 2024. This decision allows for the potential issuance of common stock, impacting the company’s financial operations and market positioning by potentially altering its share structure.

The most recent analyst rating on (JP:3656) stock is a Hold with a Yen247.00 price target. To see the full list of analyst forecasts on KLab Inc. stock, see the JP:3656 Stock Forecast page.

KLab Inc. Gains 1,012 Million Yen from Investment Securities Sale

KLab Inc. has recorded an extraordinary income from the sale of investment securities, amounting to 1,012 million yen, during the third and fourth quarters of the fiscal year ending December 31, 2025. This strategic move is aimed at enabling the company to make flexible business investments, including exploring new business areas, thereby potentially enhancing its market positioning and operational capabilities.

The most recent analyst rating on (JP:3656) stock is a Hold with a Yen126.00 price target. To see the full list of analyst forecasts on KLab Inc. stock, see the JP:3656 Stock Forecast page.

KLab Inc. Reports September 2025 Stock Acquisition Rights Exercise

KLab Inc. announced the exercise status of its 19th Stock Acquisition Rights for September 2025, revealing that 400,000 shares were delivered, and 4,000 rights were exercised, accounting for 3.96% of the total issued. This update reflects the company’s ongoing financial strategies and could impact its market positioning by potentially increasing shareholder value and liquidity.

The most recent analyst rating on (JP:3656) stock is a Hold with a Yen126.00 price target. To see the full list of analyst forecasts on KLab Inc. stock, see the JP:3656 Stock Forecast page.

KLab Inc. Restricts Exercise of 19th Stock Acquisition Rights

KLab Inc. has announced a restriction on the exercise of its 19th Stock Acquisition Rights issued to Macquarie Bank Limited. This decision, effective from September 9, 2025, is influenced by the current stock price and cash balance, impacting the company’s financial strategy and stakeholder interests.

The most recent analyst rating on (JP:3656) stock is a Hold with a Yen126.00 price target. To see the full list of analyst forecasts on KLab Inc. stock, see the JP:3656 Stock Forecast page.