MOBCAST HOLDINGS, INC. (3664) AI Stock Analysis

• Market Cap: ¥2.79B
• Dividend Yield: N/A
• Average Volume (3M): 5.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -9.66%
• EPS Growth: -55.87%
• Country: JP
• Employees: 101
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -3.27
• Shares Outstanding: 84,638,405
• 10 Day Avg. Volume: 6,869,760
• 30 Day Avg. Volume: 5,475,583
• PEG Ratio: -0.03
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -5.92
• 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: 42 Neutral
• Price Target: ¥34.00 ▲(0.00% Upside)
• Action: Upgraded Date: 02/19/26
• Date: Action: Upgraded 02/19/26

The score is held down primarily by weak financial performance—declining revenue, widening losses, and persistent negative operating/free cash flow—despite improved leverage. Technical indicators also lean bearish (below long-term moving averages with negative MACD), while valuation offers limited support given the loss-making profile (negative P/E) and no dividend yield.

Positive Factors

Improved leverage

The repair in capitalization to debt-to-equity ~0.93 is a durable improvement in financial flexibility. Lower relative leverage reduces refinancing risk and supports the company’s ability to access capital or withstand further operating losses while it attempts to stabilize operations.

High gross margin

A ~60% gross margin provides structural product-level profitability and pricing leverage. That margin buffer makes it easier to return to operating profitability if fixed costs are reduced or revenues stabilize, improving long-term recovery prospects.

Lower market sensitivity (Beta)

A beta below 1 indicates lower sensitivity to market swings, which can reduce financing volatility and support steadier capital access. For a firm with cash burn, lower systemic volatility aids planning and reduces the probability of abrupt funding stress during market downturns.

Negative Factors

Multi-year revenue decline

Sustained, steep revenue declines (~51% year-on-year) signal structural demand loss or product-market fit deterioration. Persistent top-line shrinkage undermines operating leverage and makes it difficult to absorb fixed costs, threatening medium-term viability without a clear revenue turn.

Persistent negative cash flow

Consistent negative operating and free cash flows indicate ongoing cash burn and that the business is not self-funding. This structural cash deficit increases reliance on external financing or asset sales, raising long-term liquidity and continuity risk if losses persist.

Widening losses and weak margins

Widening operating and net losses with very negative ROE point to a deteriorating cost structure or severe scale issues. Persistent negative margins erode shareholder value and signal that without substantial structural changes profitability is unlikely in the medium term.

MOBCAST HOLDINGS, INC. Business Overview & Revenue Model

Company Description

Mobcast Holdings Inc., together with its subsidiaries, engages in gaming business in Japan and internationally. It operates game platform under the Mobcast brand name. The company engages in the production business of games and digital contents; and cooking contents business, such as kitchen miscellaneous good and restaurant management. It also implements, license, maintenance, and manages intellectual property rights; and investment, merger and acquisition, advisory, and fund management entrustment services. Mobcast Holdings Inc. was incorporated in 2004 and is headquartered in Tokyo, Japan.

How the Company Makes Money

MOBCAST HOLDINGS, INC. generates revenue through multiple channels, including in-app purchases, subscription services, and advertising partnerships. The company monetizes its mobile games and applications by offering users the option to purchase virtual goods and enhancements, which significantly contribute to its earnings. Additionally, MOBCAST engages in subscription-based models for premium content access, providing users with exclusive features and experiences. Advertising revenue is also a key component, as the company collaborates with various brands and advertisers to display ads within its platforms, driving income through ad impressions and clicks. Strategic partnerships with content creators and distribution networks further enhance its revenue potential, allowing the company to expand its user base and improve monetization strategies.

MOBCAST HOLDINGS, INC. Financial Statement Overview

Summary

Overall financial quality is weak: multi-year revenue decline (about -51% in 2025 vs. 2024), negative operating and net margins with widening net losses in 2025, and consistently negative operating/free cash flow indicating ongoing cash burn. Improved leverage (debt-to-equity ~0.93 in 2025) is a positive but does not offset the profitability and liquidity concerns.

Income Statement

The income statement is weak: revenue has declined each year (down ~51% in 2025 vs. 2024), and profitability remains negative across the period. While gross margin is relatively strong (~60% in 2025), operating performance is loss-making (EBIT margin ~-12% in 2025) and net losses widened materially in 2025 (net margin ~-19% vs. ~-6% in 2024), signaling worsening cost structure and/or weaker scale.

Balance Sheet

Balance sheet risk is elevated but has improved versus earlier years. Leverage is currently moderate with debt below equity (debt-to-equity ~0.93 in 2025 versus very high levels in 2021–2024), suggesting a meaningful repair in capitalization. However, losses continue to pressure shareholder returns (negative return on equity in every year, ~-40% in 2025), and debt remains sizable in absolute terms relative to the company’s earnings profile.

Cash Flow

Cash flow is a key concern: operating cash flow and free cash flow are consistently negative, including 2025 (operating cash flow about -345M; free cash flow about -368M). Cash burn persists even as reported net losses fluctuate, indicating the business is not self-funding and may require ongoing financing or further cost reductions to stabilize liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.82B	2.81B	3.07B	3.37B	3.59B	4.54B
Gross Profit	1.66B	1.68B	1.91B	1.88B	1.94B	2.18B
EBITDA	-296.91M	-279.40M	-76.47M	-305.60M	-365.53M	-953.51M
Net Income	-425.56M	-526.66M	-169.03M	-380.80M	-448.69M	-1.09B
Balance Sheet
Total Assets	2.31B	3.24B	2.25B	2.50B	3.17B	2.79B
Cash, Cash Equivalents and Short-Term Investments	567.68M	1.18B	457.47M	601.54M	856.29M	337.89M
Total Debt	1.25B	1.24B	1.34B	1.33B	1.44B	1.45B
Total Liabilities	1.76B	1.83B	1.87B	2.10B	2.42B	2.62B
Stockholders Equity	468.98M	1.33B	316.01M	355.33M	735.59M	174.23M
Cash Flow
Free Cash Flow	0.00	-368.48M	-228.04M	-239.63M	-493.63M	-693.53M
Operating Cash Flow	0.00	-345.04M	-192.55M	-204.83M	-449.67M	-584.67M
Investing Cash Flow	0.00	-364.85M	-49.56M	-53.71M	-23.95M	99.11M
Financing Cash Flow	0.00	1.43B	102.39M	-123.56M	992.03M	398.35M

MOBCAST HOLDINGS, INC. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 34.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3664, the sentiment is Neutral. The current price of 34 is above the 20-day moving average (MA) of 33.85, below the 50-day MA of 36.10, and below the 200-day MA of 44.70, indicating a neutral trend. The MACD of -1.10 indicates Negative momentum. The RSI at 47.08 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3664.

MOBCAST HOLDINGS, INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3911	62 Neutral	¥9.90B	9.11	―	―	11.15%	―
3928	61 Neutral	¥2.60B	11.15	―	―	-10.80%	-64.63%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3903	46 Neutral	¥17.42B	5.72	―	―	-37.68%	―
3656	45 Neutral	¥25.42B	-4.12	―	―	-14.71%	-38.87%
3664	42 Neutral	¥2.79B	-4.02	―	―	-9.66%	-55.87%
3667	42 Neutral	¥2.55B	-1.31	―	―	-22.21%	32.20%