CrowdWorks, Inc. (3900) AI Stock Analysis

• Market Cap: ¥10.68B
• Dividend Yield: 2.24%
• Average Volume (3M): 299.28K
• Price to Earnings (P/E): 426.2
• Beta (1Y): 0.66
• Revenue Growth: 32.39%
• EPS Growth: -127.51%
• Country: JP
• Employees: 483
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.48
• Shares Outstanding: 15,825,959
• 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): -31.7
• Revenue Forecast (FY): ¥20.00B

• Rating: 51 Neutral
• Price Target: ¥678.00 ▼(-17.52% Downside)
• Action: Reiterated Date: 01/14/26
• Date: Action: Reiterated 01/14/26

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

Revenue Growth Trend

Consistent multi-year revenue expansion demonstrates persistent market demand and platform adoption, supporting network effects and supply-side scale. Even with slower 2025 growth, the prior high-growth years create a larger revenue base that can sustain monetization and margin recovery over months.

High Gross Margin

A ~42% gross margin reflects a high-value, low-capital-intensity marketplace model that captures transaction spreads. Durable gross margins provide structural room to invest in product, sales, and customer success while preserving potential for operating leverage as revenues scale.

Positive Operating Cash Flow

Steady operating cash flow (~¥1.7B) shows the core business converts bookings into cash, supporting day-to-day operations, dividends and reinvestment. This cash generation cushions earnings volatility and gives the company a more durable funding source while addressing near-term execution risks.

Negative Factors

Profitability Deterioration

A return to net losses and compressed operating margins in 2025 weakens earnings quality and reduces retained earnings available for growth. If margins remain under pressure, the company may need to cut investments or pricing, which could impair long-term client acquisition and platform development.

Free Cash Flow Decline

Free cash flow dropping to zero removes a critical buffer for capital allocation, forcing greater reliance on operating cash or external financing for capex and working capital. Over several quarters this limits strategic flexibility and heightens funding risk if profitability does not recover.

Rising Leverage & Negative ROE

Increasing leverage from prior low levels, together with negative ROE, raises financial risk and reduces headroom for growth investments. Higher debt amplifies interest and refinancing exposure, tightening capital allocation choices and potentially constraining long-term competitive positioning.

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 primarily makes money by operating an online marketplace where clients post work and freelancers provide services. The company generates revenue mainly through (1) platform usage fees/commissions charged on transactions between clients and freelancers (e.g., a percentage of payments processed through the platform), and (2) fees paid by clients for using the platform to recruit, manage, or contract freelancers, which can include posting-related and other service fees tied to workflow/outsourcing needs. If the company earns additional revenue from specific ancillary products (e.g., subscriptions, enterprise tools, advertising, or staffing/agency-type services), specific details are not available here and are therefore null.

CrowdWorks, Inc. Financial Statement Overview

Summary

Solid multi-year revenue growth and healthy gross margin (~42% in 2025), but 2025 profitability deteriorated sharply with a return to net losses and materially compressed operating margins. Balance sheet remains reasonably capitalized (debt-to-equity ~0.59) yet leverage has risen quickly and ROE is negative. Operating cash flow stayed positive (~¥1.7B), but free cash flow fell to zero in 2025, reducing flexibility.

Income Statement

Revenue growth has been solid recently (2025: +4.5% after 2024: ~+29.5% and 2023: ~+24.9%), and gross margin remains healthy (~42% in 2025). However, profitability weakened sharply in the latest year: net income turned negative in 2025 and operating margins compressed materially versus 2023–2024, indicating higher costs and/or reduced pricing power. Overall: good top-line trajectory, but the most recent profitability setback meaningfully drags the quality of earnings.

Balance Sheet

The balance sheet still shows meaningful equity and a moderate leverage profile in 2025 (debt-to-equity ~0.59). That said, leverage has risen quickly from very low levels in 2022–2023, and the latest return on equity is negative due to the 2025 loss. Overall: still reasonably capitalized, but the fast increase in debt and deterioration in returns are key watch items.

Cash Flow

Operating cash flow remains positive and relatively steady (about ¥1.7B in 2024–2025), which is a stabilizing factor despite the 2025 net loss. However, free cash flow fell to zero in 2025 after being strongly positive in prior years, suggesting heavier reinvestment or working-capital pressure. Overall: cash generation from operations is holding up, but the step-down in free cash flow reduces financial flexibility.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	22.66B	17.11B	13.21B	10.57B	7.77B
Gross Profit	9.57B	7.85B	6.03B	4.77B	3.45B
EBITDA	2.37B	1.60B	1.27B	975.64M	608.96M
Net Income	-257.07M	910.76M	1.10B	802.87M	622.42M
Balance Sheet
Total Assets	15.69B	13.54B	10.02B	7.66B	6.20B
Cash, Cash Equivalents and Short-Term Investments	8.09B	5.96B	5.77B	5.15B	4.25B
Total Debt	3.91B	2.03B	696.90M	123.28M	100.00M
Total Liabilities	8.94B	6.23B	3.99B	3.00B	2.41B
Stockholders Equity	6.59B	7.20B	6.02B	4.67B	3.79B
Cash Flow
Free Cash Flow	0.00	1.68B	1.35B	1.15B	837.60M
Operating Cash Flow	1.74B	1.68B	1.35B	1.15B	851.87M
Investing Cash Flow	-1.06B	-2.44B	-1.17B	-262.36M	-95.37M
Financing Cash Flow	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: Negative
• 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 675.00, above the 50-day MA of 728.26, and below the 200-day MA of 893.37, indicating a neutral trend. The MACD of -4.16 indicates Negative momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 61.63 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
2301	84 Outperform	¥22.73B	-13.94	―	3.79%	2.69%	-13.40%
3991	78 Outperform	¥10.38B	13.11	―	1.72%	3.95%	4.50%
6539	73 Outperform	¥25.95B	24.11	―	5.45%	21.90%	0.46%
4377	67 Neutral	¥33.65B	30.08	―	0.39%	41.23%	50.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2471	52 Neutral	¥19.43B	14.32	―	3.76%	6.74%	7.56%
3900	51 Neutral	¥10.68B	426.22	―	2.24%	32.39%	-127.51%

CrowdWorks, Inc. Corporate Events

CrowdWorks Highlights Core Assets in FY2026 1Q Results Materials

CrowdWorks, Inc. released supplementary materials related to its FY2026 first-quarter financial results, highlighting key performance indicators and operational trends. The documents emphasize the role of the CrowdWorks platform and its five core assets as strategic growth drivers, underscoring management’s focus on leveraging these strengths to sustain momentum on the TSE Growth market and signal ongoing efforts to enhance long-term corporate value for stakeholders.

The most recent analyst rating on (JP:3900) stock is a Hold with a Yen820.00 price target. To see the full list of analyst forecasts on CrowdWorks, Inc. stock, see the JP:3900 Stock Forecast page.

CrowdWorks Warns of Earnings Pressure After Steep Profit Drop in First Quarter

CrowdWorks reported consolidated net sales of ¥5.56 billion for the three months ended December 31, 2025, down 1.0% year on year, with gross profit falling 3.9% to ¥2.29 billion and operating profit plunging 84.4% to ¥54 million. Ordinary profit sank 78.7% to ¥74 million, and profit attributable to owners of parent declined 95.6% to ¥7 million, driving basic earnings per share down to ¥0.48 and underscoring a sharp deterioration in short-term profitability despite a slight improvement in capital adequacy to 42.5%.

Total assets slipped to ¥15.03 billion while net assets were broadly flat at ¥6.77 billion, and the company maintained its policy of not paying dividends, with no forecasted payouts for the current fiscal year. For the year ending September 30, 2026, CrowdWorks projects an 11.7% decline in net sales to ¥20.0 billion and expects operating profit to range from a ¥1.0 billion loss to break-even, highlighting significant earnings uncertainty for stakeholders amid structural headwinds, the exclusion of subsidiary CLOCK・IT, Incorporated from consolidation, and a cautious stance on growth and capital returns.

The most recent analyst rating on (JP:3900) stock is a Hold with a Yen820.00 price target. To see the full list of analyst forecasts on CrowdWorks, Inc. stock, see the JP:3900 Stock Forecast page.