Revenue RecoveryA clear revenue rebound in 2025 (~+19% YoY) indicates regained demand or successful commercial execution. Sustained top-line recovery improves scale economics, funds reinvestment, and reduces execution risk over the medium term if the company sustains this growth trajectory.

Gross Margin ExpansionA material gross margin expansion to ~56% suggests improved pricing, product mix, or cost control, which enhances structural profitability. Higher gross margins create durable operating leverage, enabling the company to absorb SG&A and finance costs while supporting long-term margin recovery.

Strong Free Cash FlowSignificant operating and free cash flow in 2025 with high conversion rates shows earnings are backed by cash. Robust FCF supports capital allocation flexibility—debt servicing, dividends, buybacks, and reinvestment—and is a durable indicator of financial resilience if volatility is managed.

Bears Say

Compressed Net MarginNet margin compression to ~2.3% significantly reduces earnings cushion versus prior years. Persistently low net margins make the firm more vulnerable to cost shocks, limit retained earnings for reinvestment, and strain long-term return on capital unless operating efficiencies or pricing improvements continue.

Rising LeverageA notable step-up in debt and D/E to ~0.27 marks a structural shift in financial risk. Higher leverage raises interest and refinancing exposure, reducing strategic flexibility and increasing the importance of consistent cash generation to avoid balance sheet stress during downturns.

Earnings And Cash‑flow VolatilityHistoric volatility in EPS and free cash flow (sharp FCF drop in 2022 and EPS growth of -90.8%) signals inconsistent earnings quality. This variability complicates long-term planning and raises execution risk; durable improvement requires sustained, predictable cash generation across cycles.

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3695 FAQ

What was GMO Research & AI,Inc.’s price range in the past 12 months?

GMO Research & AI,Inc. lowest stock price was ¥1698.00 and its highest was ¥3130.00 in the past 12 months.

What is GMO Research & AI,Inc.’s market cap?

GMO Research & AI,Inc.’s market cap is ¥7.75B.

When is GMO Research & AI,Inc.’s upcoming earnings report date?

GMO Research & AI,Inc.’s upcoming earnings report date is May 12, 2026 which is in 60 days.

How were GMO Research & AI,Inc.’s earnings last quarter?

GMO Research & AI,Inc. released its earnings results on Feb 10, 2026. The company reported ¥14.35 earnings per share for the quarter, beating the consensus estimate of N/A by ¥14.35.

Is GMO Research & AI,Inc. overvalued?

According to Wall Street analysts GMO Research & AI,Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does GMO Research & AI,Inc. pay dividends?

GMO Research & AI,Inc. pays a Annually dividend of ¥34.58 which represents an annual dividend yield of 5.22%. See more information on GMO Research & AI,Inc. dividends here

What is GMO Research & AI,Inc.’s EPS estimate?

GMO Research & AI,Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does GMO Research & AI,Inc. have?

GMO Research & AI,Inc. has 4,446,357 shares outstanding.

What happened to GMO Research & AI,Inc.’s price movement after its last earnings report?

GMO Research & AI,Inc. reported an EPS of ¥14.35 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.049%.

Which hedge fund is a major shareholder of GMO Research & AI,Inc.?

Currently, no hedge funds are holding shares in JP:3695

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

GMO Research & AI,Inc.

GMO Research & AI, Inc. provides an audience engagement platform in Japan and internationally. The company's audience engagement platform provides access to Asia Cloud Panel, a multi-panel and multi-country online panel network. The company provides quick and custom survey services. It also provides automated and agile data collection management solutions. The company was formerly known as GMO Research, Inc. and changed its name to GMO Research & AI, Inc. in May 2024. GMO Research & AI, Inc. was incorporated in 2002 and is headquartered in Tokyo, Japan. GMO Research & AI, Inc. is a subsidiary of GMO internet group, Inc.