Yappli, Inc. (4168) AI Stock Analysis

• Market Cap: ¥8.62B
• Dividend Yield: 0.7%
• Average Volume (3M): 165.41K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 1.13
• Revenue Growth: 9.78%
• EPS Growth: -23.98%
• Country: JP
• Employees: 268
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 17.00
• Shares Outstanding: 12,987,500
• 10 Day Avg. Volume: 128,560
• 30 Day Avg. Volume: 165,406
• PEG Ratio: 0.48
• Price to Book (P/B): 3.65
• Price to Sales (P/S): 1.77
• P/FCF Ratio: 13.84
• 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: 67 Neutral
• Price Target: ¥788.00 ▼(-6.08% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by improving financial performance (profitability and cash flow turnaround) and supportive valuation (low P/E with a dividend). These positives are partially offset by weak technicals, with the stock trading below key moving averages and bearish momentum indicators.

Positive Factors

Profitability turnaround

Sustained shift to positive net income across 2023–2025, supported by gross margins (~66%) and a solid net margin (~13.6%), indicates the business model now generates durable operating profits. That provides capacity to reinvest, pay down liabilities, and absorb cyclical shocks over the next 2–6 months.

Strong cash generation

Free cash flow turned strongly positive in 2024–2025 with 2025 FCF ~¥0.78B and FCF roughly in line with net income in 2024, signaling improved earnings quality. Reliable cash generation boosts financial flexibility for capex, dividends or debt reduction and supports sustainable operations beyond short-term cycles.

Strengthened equity base

Equity nearly doubled from 2023 to 2025 and total debt declined into 2025, improving capital structure and resilience. A stronger balance sheet enhances the firm's ability to fund growth, withstand revenue softness, and pursue strategic investments without immediate external financing pressure over the medium term.

Negative Factors

Decelerating revenue growth

Top-line growth slowed sharply from double-digit gains to ~4.7% in 2025. Slower revenue expansion can cap future margin improvement and reduce operating leverage, forcing management to rely more on cost control or inorganic measures to sustain profit growth, a structural headwind if persistent.

Meaningful legacy leverage

Although debt fell into 2025, prior accumulation left leverage meaningful (debt-to-equity ~0.62 in 2024). Residual indebtedness constrains flexibility for M&A or cyclical downturns and elevates refinancing and interest risks if revenue momentum weakens, limiting long-term strategic optionality.

Historical cash flow volatility

Cash flow profile improved recently but prior multi-year negative cash generation shows the business can swing materially across cycles. This uneven track record reduces confidence that cash conversion will remain stable through stress periods, posing a structural risk to investment and payout consistency.

Yappli, Inc. Business Overview & Revenue Model

Company Description

Yappli, Inc. engages in smartphone app development activities in Japan. It offers cloud-based platform for mobile application development, management, and analysis. The company was founded in 2013 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Yappli generates revenue through a subscription-based model, where clients pay a recurring fee for access to its app development platform and associated services. Key revenue streams include monthly or annual subscription fees from businesses using its platform to develop and maintain their mobile applications. Additionally, Yappli may earn revenue through premium features, custom app development services, and consulting for businesses looking to enhance their mobile presence. Strategic partnerships with other technology providers and integration with e-commerce platforms also contribute to its earnings by expanding its customer base and enhancing service offerings.

Yappli, Inc. Financial Statement Overview

Summary

Strong turnaround: revenue has grown consistently and profitability improved from losses (2020–2022) to positive net income (2023–2025) with healthy margins. Cash flow also flipped to strongly positive in 2024–2025 with solid cash conversion. Key risks are moderating revenue growth and a still-meaningful debt load despite improvement.

Income Statement

Revenue has grown consistently from 2020 to 2025, though growth has moderated recently (2025: +4.67% vs. 2024: +13.31%). Profitability has improved meaningfully, shifting from large losses in 2020–2022 to positive net income in 2023–2025, with 2024 showing a solid net margin (~13.6%) and healthy gross margin (~66%). The key watch-out is the decelerating top-line growth rate, which could limit further margin expansion if costs re-accelerate.

Balance Sheet

The balance sheet has strengthened with higher equity and a larger asset base (equity up from ~¥1.36B in 2023 to ~¥2.95B in 2025). Leverage looks manageable and improved in 2024 versus peers for many growth software names (debt-to-equity ~0.62 in 2024), and total debt declined into 2025. However, debt rose sharply from 2021 to 2024 and remains meaningful, so the company is less balance-sheet-light than earlier years and should be monitored if growth continues to slow.

Cash Flow

Cash generation has turned a corner: operating and free cash flow were deeply negative in 2020–2022, improved in 2023, and became strongly positive in 2024–2025 (2025 free cash flow ~¥0.78B). In 2024, free cash flow was roughly in line with net income (~0.96x), indicating earnings quality is supported by cash conversion. The main weakness is volatility in prior years, showing the business has not had a long track record of consistently positive cash flow through cycles.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.79B	6.06B	5.51B	4.86B	4.14B	3.26B
Gross Profit	3.83B	4.03B	3.62B	3.31B	2.70B	2.15B
EBITDA	744.09M	898.75M	575.91M	316.53M	-756.20M	-867.26M
Net Income	748.73M	920.61M	748.54M	-74.08M	-941.14M	-939.89M
Balance Sheet
Total Assets	4.28B	4.74B	4.08B	2.81B	2.84B	3.00B
Cash, Cash Equivalents and Short-Term Investments	1.83B	2.20B	1.96B	1.51B	1.65B	1.87B
Total Debt	1.25B	1.16B	1.36B	793.75M	918.75M	222.94M
Total Liabilities	1.77B	1.78B	1.89B	1.45B	1.50B	743.12M
Stockholders Equity	2.51B	2.95B	2.19B	1.36B	1.34B	2.25B
Cash Flow
Free Cash Flow	0.00	775.99M	351.86M	-162.28M	-947.61M	-928.57M
Operating Cash Flow	0.00	776.58M	366.70M	-161.36M	-926.63M	-904.49M
Investing Cash Flow	0.00	-86.67M	-487.41M	53.22M	-19.58M	-166.03M
Financing Cash Flow	0.00	-445.23M	572.85M	-34.92M	729.03M	913.76M

Yappli, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 839.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4168, the sentiment is Negative. The current price of 839 is above the 20-day moving average (MA) of 710.30, above the 50-day MA of 767.22, and below the 200-day MA of 883.57, indicating a bearish trend. The MACD of -22.92 indicates Positive momentum. The RSI at 37.48 is Neutral, neither overbought nor oversold. The STOCH value of 5.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4168.

Yappli, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4168	67 Neutral	¥8.62B	13.07	―	0.70%	9.78%	-23.98%
5244	65 Neutral	¥9.15B	7.53	―	1.20%	12.21%	6.86%
4477	64 Neutral	¥32.42B	20.10	―	―	27.97%	-5.25%
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%
4192	51 Neutral	¥8.59B	34.03	―	―	22.18%	28.27%
5027	49 Neutral	¥25.58B	39.28	―	―	20.84%	10.41%