Revenue RecoveryA durable top-line recovery (12.6% YoY in 2025) indicates the company can regain growth momentum after a weak year. Sustained revenue expansion supports investment capacity, scale benefits and long-term market share rebuilding if the company can keep execution consistent.

High Gross MarginA roughly 54% gross margin provides structural profitability advantage versus lower-margin peers and cushions operating expenses. Stable gross margins suggest durable product pricing, favorable cost structure or differentiated content that supports longer-term margin resilience.

Manageable LeverageModerate debt-to-equity (~0.56) limits refinancing and solvency risk relative to highly leveraged peers. A reasonably steady debt load and growing equity provide balance-sheet flexibility to fund investments or endure cyclical downturns without forcing distress sales or abrupt capital raises.

Bears Say

Uneven Cash GenerationOperating and free cash flow recovery in 2025 is encouraging, but the historical swings mean cash conversion is not yet reliable. Reliance on volatile cash flows raises execution risk for capex, dividends and debt service, requiring substantial consistency before confidence in cash-driven strategies.

Below-Peak ProfitabilityAlthough profits improved in 2025, margins have not returned to prior peak levels. This suggests structural margin pressure from cost increases or product mix shifts. Persistently lower margins would constrain free cash flow generation and limit the firm's ability to reinvest or buffer downturns.

Volatile Operating ResultsYear-to-year volatility in results undermines planning and raises the probability that a single weak period could strain obligations or force strategic trade-offs. For stakeholders, inconsistent performance increases execution risk and makes long-term forecasting, hiring, and product investment more costly.

3904 FAQ

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

KAYAC, Inc. lowest stock price was ¥332.00 and its highest was ¥606.00 in the past 12 months.

What is KAYAC, Inc.’s market cap?

KAYAC, Inc.’s market cap is ¥6.86B.

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

KAYAC, Inc.’s upcoming earnings report date is May 07, 2026 which is in 45 days.

How were KAYAC, Inc.’s earnings last quarter?

KAYAC, Inc. released its earnings results on Feb 16, 2026. The company reported ¥2.47 earnings per share for the quarter, beating the consensus estimate of N/A by ¥2.47.

Is KAYAC, Inc. overvalued?

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

Does KAYAC, Inc. pay dividends?

KAYAC, Inc. pays a Annually dividend of ¥3.9 which represents an annual dividend yield of 0.75%. See more information on KAYAC, Inc. dividends here

What is KAYAC, Inc.’s EPS estimate?

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

How many shares outstanding does KAYAC, Inc. have?

KAYAC, Inc. has 16,108,800 shares outstanding.

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

KAYAC, Inc. reported an EPS of ¥2.47 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 13.043%.

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

Currently, no hedge funds are holding shares in JP:3904

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

KAYAC, Inc.

KAYAC Inc. engages in the game-related business in Japan. It also operates a game community under the name Lobi; Tonamel, a tournament format where organizers manage their tournaments; and Pla-cole, a matching service for couples and wedding planners, as well as provides esports event planning and management, distribution, and production services under the Well Played name. In addition, the company offers home funeral, real estate, and trading services. KAYAC Inc. was founded in 1998 and is headquartered in Kamakura, Japan.