iRidge, Inc. (3917) AI Stock Analysis

• Market Cap: ¥4.90B
• Dividend Yield: N/A
• Average Volume (3M): 20.41K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.59
• Revenue Growth: 7.40%
• EPS Growth: N/A
• Country: JP
• Employees: 256
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 84.35
• Shares Outstanding: 7,829,354
• 10 Day Avg. Volume: 18,960
• 30 Day Avg. Volume: 20,413
• PEG Ratio: -3.10
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 80.15
• 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: 66 Neutral
• Price Target: ¥639.00 ▲(31.48% Upside)
• Action: Downgraded Date: 01/27/26
• Date: Action: Downgraded 01/27/26

The score is driven mainly by solid revenue growth and a reasonably healthy balance sheet, tempered by ongoing profitability and cash-flow weakness. Technically, the uptrend is strong but appears overextended, while valuation looks supportive due to the low P/E.

Positive Factors

Revenue Growth

Consistent 17.4% revenue growth demonstrates sustained demand for iRidge's customer-engagement services. Strong top-line momentum supports scalable economics, helps absorb fixed costs, and increases the probability of achieving durable profitability and stronger cash generation as the business scales.

Business Model & Market Position

iRidge's platform model—official apps and digital marketing for retailers and service firms—aligns with structural mobile and digital engagement trends. Sticky app integrations and recurring campaign services create switching costs and a predictable revenue base over the medium term.

Gross Margin

A 32.0% gross margin indicates healthy unit economics for an application software business. Solid gross profits provide room to invest in product, sales and customer success while retaining operating leverage potential, supporting sustainable margins as revenue grows.

Negative Factors

Profitability Weakness

Persistent negative net margins and volatile net income indicate the company has not converted revenue growth into reliable profits. This limits retained-earnings accumulation, raises reliance on external financing, and delays the firm's ability to self-fund strategic investments or withstand shocks.

Operating Cash Flow Decline

A marked drop in operating cash flow signals weakening cash conversion and potential operational inefficiencies. Even with a positive free cash flow to net income ratio, negative FCF growth constrains reinvestment capacity and increases funding risk if losses and weak cash generation persist.

Eroding Equity Position

The falling equity ratio alongside a moderate D/E of 0.61 shows the balance sheet's equity cushion has weakened over time. Reduced balance-sheet resilience limits strategic flexibility, raises vulnerability to adverse shocks, and may increase future funding costs if additional capital is required.

iRidge, Inc. Business Overview & Revenue Model

Company Description

iRidge, Inc. engages in the planning, development, and operation of Internet services in Japan. It develops app, including scratch and package; sales promotion and customer attraction applications; and line mini app. The company also offers O2O solutions; app marketing tools comprising FANSHIP, and support services for business, CRM, data analysis, and operation; financial technology solutions, including MoneyEasy and BUS PAY; and DX solutions, including assignment schedule and tool management solutions, as well as NOID, a voice AI assistants alexa solution. The company was incorporated in 2008 and is headquartered in Tokyo, Japan.

How the Company Makes Money

iRidge, Inc. generates revenue through a multi-faceted model that includes software licensing, subscription services, and consulting fees. The company sells its proprietary software solutions on a licensing basis, allowing businesses to integrate its analytics tools into their existing systems. Additionally, iRidge offers subscription-based services for ongoing access to its platforms, which include regular updates and customer support. Consulting services are another significant revenue stream, where iRidge's experts assist clients in implementing data strategies and optimizing their usage of analytics tools. Strategic partnerships with technology firms and industry leaders further enhance iRidge's market reach and contribute to its earnings by facilitating co-development of innovative solutions and expanding its customer base.

iRidge, Inc. Financial Statement Overview

Summary

Revenue grew strongly from 2024 to 2025 (+17.4%), and leverage appears manageable (debt-to-equity 0.61). However, profitability remains weak with negative net margins and volatile net income, and operating/free cash flow trends declined, limiting financial flexibility.

Income Statement

iRidge, Inc. has shown solid revenue growth from 2024 to 2025 at 17.4%, indicating strong sales momentum. However, the net income has been volatile, with a significant loss in 2024 and only a slight improvement in 2025. The gross profit margin in 2025 stands at 32.0%, which is commendable for the industry, though the net profit margin remains negative, highlighting potential profitability challenges.

Balance Sheet

The company's balance sheet shows a healthy equity position with an equity ratio of 41.7% in 2025, down from 59.0% in 2023, indicating a decrease in equity strength. The debt-to-equity ratio is moderate at 0.61, suggesting manageable leverage. However, there is room for improvement in asset management and equity growth.

Cash Flow

Operating cash flow has decreased significantly from 2024 to 2025, reflecting potential operational inefficiencies. The free cash flow to net income ratio is positive, suggesting that the company is generating cash despite reporting net losses, but the free cash flow growth rate is negative, showing declining cash generation capability.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	6.95B	6.71B	5.71B	5.42B	5.42B	4.36B
Gross Profit	2.20B	2.15B	1.75B	2.00B	1.93B	1.54B
EBITDA	412.93M	441.95M	-624.82M	576.83M	499.29M	175.72M
Net Income	-35.75M	13.90M	-1.16B	175.28M	255.05M	12.65M
Balance Sheet
Total Assets	5.49B	5.94B	5.50B	5.64B	4.52B	4.14B
Cash, Cash Equivalents and Short-Term Investments	2.63B	2.74B	2.87B	1.85B	1.43B	1.44B
Total Debt	1.43B	1.51B	1.42B	1.23B	350.00M	450.00M
Total Liabilities	3.19B	3.39B	3.28B	2.31B	1.22B	1.23B
Stockholders Equity	2.30B	2.47B	2.16B	3.28B	3.05B	2.69B
Cash Flow
Free Cash Flow	0.00	53.38M	878.53M	-38.99M	43.93M	334.20M
Operating Cash Flow	0.00	53.91M	1.30B	364.31M	198.16M	508.87M
Investing Cash Flow	0.00	-581.95M	-489.24M	-660.90M	-198.16M	-498.86M
Financing Cash Flow	0.00	395.24M	205.85M	716.74M	-6.39M	323.17M

iRidge, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 486.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3917, the sentiment is Positive. The current price of 486 is below the 20-day moving average (MA) of 610.60, below the 50-day MA of 558.92, and below the 200-day MA of 519.43, indicating a bullish trend. The MACD of 12.06 indicates Positive momentum. The RSI at 60.69 is Neutral, neither overbought nor oversold. The STOCH value of 84.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3917.

iRidge, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4060	74 Outperform	¥6.69B	25.18	―	0.57%	21.03%	32.29%
3917	66 Neutral	¥4.90B	8.00	―	―	7.40%	―
5033	66 Neutral	¥4.90B	13.29	―	―	7.60%	19.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	58 Neutral	¥12.34B	56.91	―	―	14.63%	-760.87%
4484	55 Neutral	¥5.10B	26.11	―	―	4.36%	-0.02%
3909	51 Neutral	¥2.63B	2.73	―	―	-32.56%	―