V-cube (3681) AI Stock Analysis

• Market Cap: ¥2.95B
• Dividend Yield: N/A
• Average Volume (3M): 112.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -8.32%
• EPS Growth: 71.98%
• Country: JP
• Employees: 372
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -13.79
• Shares Outstanding: 26,343,900
• 10 Day Avg. Volume: 69,410
• 30 Day Avg. Volume: 112,550
• PEG Ratio: 0.05
• Price to Book (P/B): -39.88
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 7.24
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ¥121.00 ▲(8.04% Upside)

V-cube, Inc.'s overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's declining revenues, profitability issues, and high leverage are significant concerns. Additionally, the negative P/E ratio and lack of dividend yield further detract from its valuation. These factors combined suggest a challenging outlook for the stock.

Positive Factors

Cash Generation Ability

Positive operating cash flow indicates V-cube's ability to generate cash from its core operations, which is crucial for sustaining business activities and funding growth initiatives.

Business Model Strength

A subscription-based revenue model provides predictable and recurring income, enhancing financial stability and allowing for better long-term planning and investment.

Market Position

As a leader in virtual communication solutions, V-cube benefits from strong brand recognition and a competitive edge in a growing industry, supporting long-term growth prospects.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in maintaining market share or product demand, which could impact long-term growth and profitability if not addressed.

High Leverage

High leverage and negative equity raise concerns about financial stability and increase the risk of financial distress, potentially limiting future investment and growth opportunities.

Profitability Challenges

Persistent profitability issues highlight operational inefficiencies and could hinder the company's ability to reinvest in growth and innovation, affecting long-term competitiveness.

V-cube Business Overview & Revenue Model

Company Description

V-cube, Inc. develops and provides visual communication services to enterprise customers. The company offers V-CUBE Meeting, a cloud-based Web conferencing service; V-CUBE Seminar, a Web seminar product for seminars, training, and information sessions; V-CUBE Sales, a web conferencing tool for online sales; V-CUBE Learning, a learning management system (LMS) that has incorporated the virtual online platform for training and learning purposes; and V-CUBE Voice, a teleconferencing service. It also provides Telecube, a soundproof smartphone box that can be installed anywhere and there are tables and chairs, and a PC inside that can be used for web conferencing; QUMU, a cloud-type video distribution management system; Agora for implementation of video calls and live distribution on iOS/Android applications and websites; EventIn, an online event platform; V-CUBE Collaboration, a web conferencing service to share video and audio, and PC desktop screens in real-time; and Realwear explosion-proof smart glass. In addition, the company offers hardware related to visual communication, such as web cameras, headsets, microphones with echo cancellers, large LCD displays, etc., as well as post-installation management services. V-cube, Inc. was founded in 1998 and is headquartered in Tokyo, Japan.

How the Company Makes Money

V-cube generates revenue primarily through subscription fees for its cloud-based services, which include video conferencing, online seminars, and virtual event platforms. The company also earns income from one-time service fees for custom solutions and technical support. Key revenue streams include corporate subscriptions, educational institution contracts, and partnerships with other tech companies for integrated services. Additionally, V-cube has established collaborations with various organizations to enhance its service offerings, contributing to its overall earnings through expanded market reach and customer base.

V-cube Financial Statement Overview

Summary

V-cube, Inc. faces significant financial challenges, with declining revenues and profitability issues impacting the income statement. The balance sheet shows high leverage and negative equity, raising concerns about financial stability. The cash flow statement reveals some resilience in operating cash flow, but volatility in free cash flow suggests underlying operational and financial challenges. Overall, the company needs to address its declining financial performance and leverage to improve its financial health.

Income Statement

V-cube, Inc. has experienced declining revenue over the past years, dropping from ¥12.2 billion in 2022 to ¥10.5 billion in 2024. The company has faced significant profitability challenges, evidenced by negative net profit margins in recent years, with a net income loss of ¥1.4 billion in 2024. Margins have also deteriorated, with the EBIT and EBITDA margins turning negative in 2023 and remaining low in 2024. While gross profit margins have remained relatively stable, the overall income statement performance suggests the company is struggling to maintain profitability.

Balance Sheet

The balance sheet of V-cube, Inc. reveals financial instability, with stockholders' equity turning negative in 2024. The debt-to-equity ratio is concerning due to negative equity, indicating high leverage. Total debt remains significantly high compared to the company’s assets, suggesting potential liquidity issues. These factors demonstrate a weak financial position and may pose risks to the company's long-term sustainability.

Cash Flow

Despite operating cash flow remaining positive, V-cube, Inc. has experienced volatility in free cash flow, recovering from negative figures in previous years to a positive ¥671 million in 2024. However, the operating cash flow to net income ratio is impacted by negative net income. The company's ability to generate cash from operations is a positive sign, but the fluctuations in free cash flow indicate potential challenges in managing capital expenditures and financing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.86B	10.46B	11.08B	12.23B	11.49B	8.28B
Gross Profit	3.52B	3.95B	4.64B	5.42B	5.31B	3.87B
EBITDA	-251.02M	287.18M	-2.76B	1.44B	1.93B	1.89B
Net Income	-1.84B	-1.42B	-5.62B	84.59M	1.32B	1.14B
Balance Sheet
Total Assets	10.94B	10.48B	12.33B	16.89B	15.26B	10.03B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.01B	1.39B	1.70B	1.82B	2.77B
Total Debt	7.21B	7.89B	8.66B	7.89B	7.48B	3.49B
Total Liabilities	9.69B	10.46B	11.58B	10.90B	10.16B	6.21B
Stockholders Equity	1.11B	-121.81M	630.32M	5.90B	5.05B	3.79B
Cash Flow
Free Cash Flow	-1.14B	671.00M	-1.15B	-414.09M	-25.91M	1.09B
Operating Cash Flow	-1.01B	815.79M	990.96M	1.83B	2.09B	1.98B
Investing Cash Flow	-11.00M	-473.13M	-1.92B	-2.40B	-5.97B	-935.46M
Financing Cash Flow	548.69M	-759.60M	562.40M	290.31M	2.83B	950.76M

V-cube Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 112.00
• 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:3681, the sentiment is Negative. The current price of 112 is below the 20-day moving average (MA) of 115.10, below the 50-day MA of 129.44, and below the 200-day MA of 156.35, indicating a bearish trend. The MACD of -5.24 indicates Negative momentum. The RSI at 38.45 is Neutral, neither overbought nor oversold. The STOCH value of 63.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3681.

V-cube Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3841	77 Outperform	¥4.95B	21.95	―	3.14%	-1.09%	-14.08%
3933	75 Outperform	¥4.95B	9.55	―	1.84%	86.36%	116.52%
3921	74 Outperform	¥26.03B	14.59	―	2.53%	16.13%	62.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3936	48 Neutral	¥5.12B	61.07	―	―	33.73%	―
3681	41 Neutral	¥2.95B	-1.68	-282.36%	―	-8.32%	71.98%

V-cube Corporate Events

V-cube Suspends Loan Repayments Amid Restructuring Efforts

V-cube, Inc. has announced a temporary suspension of loan repayments until March 2026, as part of its strategy to stabilize its financial base amidst restructuring efforts involving its U.S. subsidiary, TEN Holdings, Inc. This move is intended to alleviate financial pressure and allow the company to focus on future business and repayment plans, while maintaining the support of its financial institutions.

V-cube, Inc. Advances Toward Listing Compliance with Improved Net Assets

V-cube, Inc. announced progress in meeting the listing maintenance criteria for the Tokyo Stock Exchange’s Prime Market. After facing challenges due to impairment losses, the company has improved its net assets through the IPO of its subsidiary, TEN Holdings, and other financial strategies, ensuring a positive financial outlook and continued listing eligibility.

V-cube Reports Significant Foreign Exchange Losses in Q3 2025

V-cube, Inc. has reported foreign exchange losses amounting to 17,013 thousand yen for the third quarter of the fiscal year ending December 31, 2025. These losses, primarily due to the revaluation of foreign currency-denominated assets and liabilities, have resulted in a total of 90,994 thousand yen in foreign exchange losses for the first nine months of the fiscal year. This financial impact is reflected in the company’s consolidated financial results for the period, indicating potential challenges in managing currency fluctuations.

V-cube Reports Decline in Financial Performance for 2025

V-cube, Inc. reported a decline in its financial performance for the nine months ended September 30, 2025, with net sales dropping by 7.5% and a significant decrease in adjusted EBITDA by 70.5%. The company experienced operating and ordinary losses, reflecting challenges in its market positioning and operational efficiency. Despite these setbacks, the company maintains its forecast for the fiscal year ending December 31, 2025, with no revisions to previously announced projections.

V-cube, Inc. Responds to Tokyo Stock Exchange’s Market Segment Criteria Revisions

V-cube, Inc. is addressing the recent revisions by the Tokyo Stock Exchange regarding market segment criteria, which will no longer require a profit of JPY 100 million for transitioning to the Standard Market. This change impacts V-cube’s strategy as it seeks to maintain its Prime Market listing, with a grace period ending December 31, 2025, followed by a potential one-year improvement period. The company is preparing for a qualitative review and remains committed to meeting the necessary criteria, while also planning for a possible transition to the Standard Market if compliance proves challenging.