iRidge, Inc. (3917) AI Stock Analysis

• Market Cap: ¥4.63B
• Dividend Yield: N/A
• Average Volume (3M): 20.41K
• Price to Earnings (P/E): 62.7
• Beta (1Y): 0.57
• Revenue Growth: 7.40%
• EPS Growth: N/A
• Country: JP
• Employees: 256
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.82
• Shares Outstanding: 7,829,354
• 10 Day Avg. Volume: 18,960
• 30 Day Avg. Volume: 20,413
• PEG Ratio: -3.04
• Price to Book (P/B): 1.71
• 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

Sustained 17.4% revenue growth across fiscal years indicates durable demand for iRidge's customer-engagement and loyalty platforms. Persistent top-line expansion supports scale economics, broader client adoption, and recurring revenue potential, strengthening the path to margin improvement over the next several quarters.

Gross Margin Strength

A 32% gross margin provides structural leverage for a software/app-centric model: it cushions operating expenses and enables operating leverage as revenues scale. This margin level supports the potential to fund marketing and product development without immediate margin erosion, aiding sustainable profitability if growth continues.

Manageable Leverage

A moderate debt-to-equity of 0.61 and a material equity base imply reasonable financial flexibility and lower refinancing risk relative to highly leveraged peers. This balance sheet posture supports continued investment in product and customer success while providing a buffer to absorb near-term earnings volatility without forcing immediate capital raises.

Negative Factors

Declining Operating Cash Flow

Material decline in operating cash flow and negative free cash flow growth signal weakening cash conversion of earnings. Over 2-6 months this constrains the company's ability to self-fund marketing, R&D, and platform enhancements, increasing reliance on external financing or slowing strategic initiatives if trends persist.

Negative & Volatile Profitability

Persistent negative net margins and volatile net income — including a substantial loss in 2024 — undermine retained-earnings growth and limit reinvestment capacity. Continued operating losses impede long-term return generation and may necessitate cost restructuring or capital injections to sustain expansion plans.

Eroding Equity Strength

A marked decline in equity ratio over two years reflects deterioration in balance-sheet cushioning. Reduced equity relative to assets lessens the firm's shock-absorbing capacity, could raise borrowing costs, and may constrain strategic M&A or large investments unless equity is rebuilt or profitably retained.

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

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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	552.80M	552.38M	243.13M	563.41M	503.28M	266.57M
Net Income	-10.06M	13.90M	-1.16B	175.28M	255.05M	12.65M
Balance Sheet
Total Assets	5.49B	6.45B	6.21B	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	3.88B	3.98B	2.31B	1.22B	1.23B
Stockholders Equity	2.30B	2.50B	2.16B	3.28B	3.05B	2.69B
Cash Flow
Free Cash Flow	0.00	53.38M	1.26B	357.92M	197.56M	462.07M
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	-123.16M	-498.86M
Financing Cash Flow	0.00	395.24M	205.85M	716.74M	-81.39M	323.17M

iRidge, Inc. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3917, the sentiment is Neutral. The current price of 486 is below the 20-day moving average (MA) of 610.10, below the 50-day MA of 599.12, and below the 200-day MA of 526.53, indicating a neutral trend. The MACD of 1.52 indicates Positive momentum. The RSI at 43.19 is Neutral, neither overbought nor oversold. The STOCH value of 10.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥5.97B	21.40	―	0.57%	21.03%	32.29%
5033	71 Outperform	¥4.79B	21.99	―	―	7.60%	19.13%
3917	66 Neutral	¥4.63B	62.68	―	―	7.40%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	58 Neutral	¥11.16B	23.59	―	―	14.63%	-760.87%
4484	55 Neutral	¥4.97B	29.81	―	―	4.36%	-0.02%
3909	51 Neutral	¥2.27B	206.76	―	―	-32.56%	―