Sustainably Healthy Gross MarginA roughly 32% gross margin indicates the core business retains meaningful unit economics even while operating profit is negative. That level of gross profitability is durable and provides a margin buffer: management can focus on operating-leverage and SG&A control to restore operating profit without needing structural product re-pricing.

Manageable Leverage And Sizable EquityLow leverage (debt/equity ~0.17–0.30) and a sizable equity base give the company financial flexibility to absorb losses and fund a recovery. This reduces refinancing risk and preserves optionality for strategic investment or restructuring over a multi-quarter horizon without immediate solvency pressure.

Positive Operating Cash FlowContinued positive operating cash flow despite accounting losses signals that core operations generate cash and are not purely accrual-driven losses. That cash generation supports near-term liquidity, funds working capital needs, and provides a platform to rein in capex or seek measured investment while addressing profitability.

Bears Say

Material Net Losses Eroding ReturnsA clear shift to large net losses and deeply negative ROE is a structural deterioration of earnings quality that erodes shareholder capital. Persistent losses will constrain reinvestment, tenant management attention on cash preservation, and limit ability to fund strategic initiatives without external financing.

Free Cash Flow Swung Meaningfully NegativeA sharp FCF reversal reduces runway and increases dependence on financing or equity to sustain operations. Over several quarters this can force cutbacks in growth projects, slow product development, or dilutive capital raises, impairing long-term competitiveness and strategic execution.

Revenue Decline And VolatilitySustained revenue declines and volatility undermine scale benefits and make margin recovery harder. Weak top-line momentum suggests customer churn or demand erosion; without stable revenue growth, fixed costs remain harder to absorb and the pathway to durable profitability becomes uncertain.

3680 FAQ

What was Hotto Link, Inc.’s price range in the past 12 months?

Hotto Link, Inc. lowest stock price was ¥193.00 and its highest was ¥430.00 in the past 12 months.

What is Hotto Link, Inc.’s market cap?

Hotto Link, Inc.’s market cap is ¥3.62B.

When is Hotto Link, Inc.’s upcoming earnings report date?

Hotto Link, Inc.’s upcoming earnings report date is May 08, 2026 which is in 74 days.

How were Hotto Link, Inc.’s earnings last quarter?

Hotto Link, Inc. released its earnings results on Feb 13, 2026. The company reported -¥97.64 earnings per share for the quarter, missing the consensus estimate of N/A by -¥97.64.

Is Hotto Link, Inc. overvalued?

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

Does Hotto Link, Inc. pay dividends?

Hotto Link, Inc. pays a Semiannually dividend of ¥3 which represents an annual dividend yield of 1.17%. See more information on Hotto Link, Inc. dividends here

What is Hotto Link, Inc.’s EPS estimate?

Hotto Link, Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Hotto Link, Inc. have?

Hotto Link, Inc. has 15,965,800 shares outstanding.

What happened to Hotto Link, Inc.’s price movement after its last earnings report?

Hotto Link, Inc. reported an EPS of -¥97.64 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -5.242%.

Which hedge fund is a major shareholder of Hotto Link, Inc.?

Currently, no hedge funds are holding shares in JP:3680

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

Hotto Link, Inc.

Hottolink, Inc. offers social media marketing support that collects, analyzes, and utilizes social big data in Japan. The company provides SNS marketing support, Twitter marketing support, Instagram marketing support, influencer marketing support, post campaign, and creative production. It also engages in the SNS data access rights and investment management business activities. The company was incorporated in 2000 and is headquartered in Tokyo, Japan.