CrowdWorks, Inc. (3900) AI Stock Analysis

• Market Cap: ¥12.70B
• Dividend Yield: 2.24%
• Average Volume (3M): 299.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 32.39%
• EPS Growth: -127.51%
• Country: JP
• Employees: 483
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -49.81
• Shares Outstanding: 15,821,459
• 10 Day Avg. Volume: 682,770
• 30 Day Avg. Volume: 299,283
• PEG Ratio: 0.44
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 0.00
• 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: 51 Neutral
• Price Target: ¥786.00 ▼(-4.38% Downside)

The score is primarily constrained by weakened financial quality in 2025 (return to losses, rising leverage, and free cash flow dropping to zero) and a clearly bearish technical setup with the stock trading below all key moving averages and negative MACD. Revenue growth and a healthy gross margin provide some offset, and the ~2.25% dividend yield offers modest support despite the negative P/E.

Positive Factors

Consistent multi-year revenue growth

CrowdWorks shows durable top-line expansion across multiple years, signaling sustained demand for its freelancer-client marketplace. Multi-year growth supports scale economies, network effects and continued client acquisition, underpinning longer-term revenue resilience if execution continues.

High gross margin (~42%)

A ~42% gross margin reflects strong platform economics and efficient transaction monetization, giving room to absorb sales and R&D spend while funding product improvements. Persistently high gross margins support durable profit potential if the commission/subscription model holds against competition.

Positive operating cash flow

Steady positive operating cash flow demonstrates the core marketplace converts fees to cash, supporting day-to-day operations and reinvestment without immediate reliance on financing. This cash generation is a durable buffer against temporary profit volatility and funds strategic initiatives.

Negative Factors

Return to net losses and compressed margins

A switch back to net losses and tighter operating margins weakens long-term earnings quality and reduces retained earnings available for reinvestment or dividends. If higher costs or pricing pressure persist, it may impair ROE and constrain strategic flexibility over the medium term.

Rising leverage from low base

Rapidly increasing leverage, even from a low starting point, reduces financial flexibility and raises interest and refinancing risks. In a business with weakening profitability, higher debt magnifies vulnerability to cash-flow shocks and limits the firm's ability to invest opportunistically.

Free cash flow fell to zero in 2025

A collapse of free cash flow to zero materially lowers the company's capacity to fund growth, pay dividends, or reduce debt from internal sources. This reduces the margin for operational error and may force external financing or cost cuts if the FCF shortfall persists.

CrowdWorks, Inc. Business Overview & Revenue Model

Company Description

CrowdWorks Inc. provides crowdsourcing services in Japan. The company operates CrowdWorks, a crowdsourcing platform that connects companies with individuals over the Internet enabling orders to be placed and accepted for work; and Crowdtech, a project matching service platform for freelancers and companies. It also offers specialized project matching services for the needs of online work; CrowsLinks, a specialized side job/second business matching services for high-value professionals; and Software as a service. CrowdWorks Inc. was incorporated in 2011 and is headquartered in Tokyo, Japan.

How the Company Makes Money

CrowdWorks, Inc. generates revenue primarily through a commission-based model, taking a percentage of the fees charged by freelancers for completed projects. This percentage varies depending on the nature of the project and the agreement between the freelancer and the client. Additionally, the company may offer premium services, such as enhanced visibility for freelancer profiles, subscription plans for businesses seeking to access a broader talent pool, and fees for project management tools. Strategic partnerships with educational institutions and training platforms also contribute to its earnings by facilitating a steady influx of qualified freelancers on the platform, thereby attracting more clients.

CrowdWorks, Inc. Financial Statement Overview

Summary

CrowdWorks, Inc. shows strong revenue growth and a healthy balance sheet with stable profit margins and low debt levels. However, cash flow management is a concern, as indicated by zero free cash flow in the TTM.

Income Statement

CrowdWorks, Inc. demonstrates strong revenue and profit growth, with a Revenue Growth Rate of 40.72% from 2023 to 2024 and a consistent increase in Gross Profit Margin to 44.27% for the TTM. EBIT and EBITDA margins are healthy, at 7.19% and 8.73% respectively. However, Net Profit Margin slightly decreased to 4.66% for the TTM.

Balance Sheet

The company maintains a solid financial position with a Debt-to-Equity Ratio of 0.77 and a strong Equity Ratio of 40.97% for the TTM. However, the Return on Equity (ROE) decreased to 12.15% for the TTM, indicating potential inefficiencies in generating returns for shareholders.

Cash Flow

CrowdWorks, Inc. faces challenges in cash flow management, with a Free Cash Flow of zero in the TTM. Despite this, historical data shows positive operating and free cash flow in previous years. The Operating Cash Flow to Net Income Ratio and Free Cash Flow to Net Income Ratio are not calculable for the TTM due to zero cash flows.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.68B	22.66B	17.11B	13.21B	10.57B	7.77B
Gross Profit	9.16B	9.57B	7.85B	6.14B	4.81B	3.48B
EBITDA	1.95B	1.29B	1.67B	1.33B	972.89M	673.31M
Net Income	734.49M	-257.07M	910.76M	1.10B	802.87M	622.42M
Balance Sheet
Total Assets	17.56B	15.69B	13.54B	10.00B	7.64B	6.22B
Cash, Cash Equivalents and Short-Term Investments	7.01B	8.09B	5.96B	5.73B	5.15B	4.25B
Total Debt	5.01B	3.91B	2.03B	696.90M	123.28M	100.00M
Total Liabilities	9.86B	8.94B	6.23B	3.96B	2.97B	2.41B
Stockholders Equity	7.56B	6.59B	7.20B	6.02B	4.67B	3.79B
Cash Flow
Free Cash Flow	0.00	0.00	1.68B	1.35B	1.15B	854.52M
Operating Cash Flow	0.00	1.74B	1.68B	1.35B	1.15B	868.79M
Investing Cash Flow	0.00	-1.06B	-2.44B	-1.17B	-262.36M	-95.37M
Financing Cash Flow	0.00	1.49B	960.63M	436.34M	8.34M	5.09M

CrowdWorks, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 822.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3900, the sentiment is Negative. The current price of 822 is above the 20-day moving average (MA) of 805.40, above the 50-day MA of 819.04, and below the 200-day MA of 968.25, indicating a bearish trend. The MACD of -5.91 indicates Positive momentum. The RSI at 45.21 is Neutral, neither overbought nor oversold. The STOCH value of 52.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3900.

CrowdWorks, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2410	79 Outperform	¥13.18B	12.10	―	4.18%	5.14%	17.12%
3991	78 Outperform	¥11.35B	11.19	―	1.72%	3.95%	4.50%
6539	73 Outperform	¥26.60B	25.61	―	5.45%	21.90%	0.46%
4433	64 Neutral	¥17.95B	27.61	―	3.66%	8.62%	―
6070	64 Neutral	¥31.86B	13.59	―	4.69%	-1.06%	3.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3900	51 Neutral	¥12.70B	-49.39	―	2.24%	32.39%	-127.51%

CrowdWorks, Inc. Corporate Events

CrowdWorks, Inc. Reports Increased Sales but Faces Profitability Challenges

CrowdWorks, Inc. reported a significant increase in net sales and operating profit for the fiscal year ended September 30, 2025, with net sales rising by 32.4% and operating profit by 31.2% compared to the previous year. Despite these gains, the company faced a comprehensive income loss and a decrease in net assets, highlighting challenges in maintaining profitability. The company also announced changes in its consolidation scope, adding three new companies and excluding one, which may impact future financial performance.

The most recent analyst rating on (JP:3900) stock is a Hold with a Yen905.00 price target. To see the full list of analyst forecasts on CrowdWorks, Inc. stock, see the JP:3900 Stock Forecast page.