ExaWizards Inc. (4259) AI Stock Analysis

• Market Cap: ¥63.30B
• Dividend Yield: N/A
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 8.98%
• EPS Growth: -581.59%
• Country: JP
• Employees: 548
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.65
• Shares Outstanding: 86,836,000
• 10 Day Avg. Volume: 1,998,980
• 30 Day Avg. Volume: 1,537,346
• PEG Ratio: -0.03
• Price to Book (P/B): 10.12
• Price to Sales (P/S): 2.54
• P/FCF Ratio: 49.30
• 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): 10.45
• Revenue Forecast (FY): ¥11.54B

• Rating: 61 Neutral
• Price Target: ¥702.00 ▲(10.20% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by improving fundamentals (notably positive free cash flow and strong revenue growth) but is held back by ongoing profitability losses and a moderately pressured balance sheet. Technically, the trend is strong, yet very overbought readings raise pullback risk, and valuation is constrained by negative earnings and no stated dividend.

Positive Factors

Revenue Growth

A 17% revenue increase year-over-year indicates expanding client adoption and demand for AI/DX services. This durable top-line growth supports scale, helps absorb fixed R&D and delivery costs, and creates a base to convert project work into recurring service contracts.

Positive Free Cash Flow

Turning free cash flow positive demonstrates improving cash conversion and operational discipline. Sustainable positive FCF increases financial flexibility to fund growth, reduce reliance on external financing, and invest in product development or sales capacity over the medium term.

High Gross Margin

A gross margin near 58% reflects a high-value, software/AI-driven services mix with strong pricing power. High gross margins provide room to invest in customer success and R&D while targeting operating leverage to drive eventual profitability as sales scale.

Negative Factors

Ongoing Unprofitability

Persistent negative net and EBIT margins indicate the core business is not yet consistently profitable. Continued losses can erode capital, constrain reinvestment capacity, and require sustained improvement in operating efficiency or pricing to reach durable profitability.

Moderate Leverage & Declining Equity

A debt-to-equity ratio around 1.04 with falling equity and assets signals rising financial strain and reduced balance sheet resilience. This moderate leverage increases interest and refinancing risk, limiting the firm's capacity to absorb shocks or invest aggressively in growth.

Large Negative EPS Trend

An extreme negative EPS growth rate reflects sizable earnings deterioration or one-off losses and/or dilution. Such a material decline undermines retained earnings, complicates capital allocation, and raises the bar for management to restore consistent, long-term profitability.

ExaWizards Inc. Business Overview & Revenue Model

Company Description

ExaWizards Inc. develops AI-enabled services for industrial innovation and social problems solutions in Japan. It operates through AI Platform and AI Products segments. The company provides AI platform services; and services for AI understanding, planning, design, development, operation, and usage. It also develops and offers AI products to solve generic industrial and social issues. The company was incorporated in 2016 and is headquartered in Tokyo, Japan.

How the Company Makes Money

ExaWizards Inc. generates revenue through multiple streams, primarily by offering subscription-based software services and licensing their proprietary AI technologies to businesses across various industries. The company also engages in consulting services, helping organizations implement AI solutions tailored to their specific needs. Significant partnerships with healthcare providers and financial institutions further bolster their revenue, as these collaborations often lead to customized projects and long-term contracts. Additionally, ExaWizards may earn income through performance-based fees tied to the success of their AI implementations, contributing to a diversified and resilient revenue model.

ExaWizards Inc. Financial Statement Overview

Summary

Strong revenue growth (+17% from 2024 to 2025) and improved cash generation with free cash flow turning positive support the score. Offsetting this, profitability remains weak with negative net profit/EBIT margins and negative EBITDA, and the balance sheet shows moderate leverage (debt-to-equity 1.04) alongside declining equity and assets.

Income Statement

ExaWizards Inc. has shown significant revenue growth with a 17% increase from 2024 to 2025. However, the company is struggling with profitability as indicated by negative net profit margins and EBIT margins. Gross profit margin remains healthy at approximately 57.8%, but negative EBITDA indicates operational challenges.

Balance Sheet

The balance sheet reflects moderate financial stability with a debt-to-equity ratio of 1.04 in 2025, which suggests balanced leverage. However, the declining stockholders' equity and reduction in total assets over the years pose potential risks. The equity ratio of around 35% in 2025 indicates a moderate reliance on equity financing.

Cash Flow

Cash flow analysis shows a positive trend with free cash flow turning positive in 2025, indicating improved cash management. The operating cash flow to net income ratio is favorable, demonstrating effective conversion of income to cash. However, historical volatility in cash flows suggests potential risks in sustaining this trend.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.15B	9.81B	8.38B	5.59B	4.81B	2.61B
Gross Profit	6.25B	5.67B	4.69B	3.14B	3.05B	1.66B
EBITDA	-1.42B	-1.75B	67.00M	359.00M	90.00M	-441.13M
Net Income	-2.21B	-2.58B	-610.00M	-141.00M	-137.00M	-592.69M
Balance Sheet
Total Assets	7.46B	7.02B	9.93B	7.94B	7.87B	3.69B
Cash, Cash Equivalents and Short-Term Investments	3.85B	3.01B	3.49B	5.23B	5.54B	2.34B
Total Debt	2.48B	2.55B	2.85B	310.00M	345.00M	815.00M
Total Liabilities	4.35B	4.48B	4.95B	1.32B	1.23B	1.30B
Stockholders Equity	3.02B	2.46B	4.93B	6.54B	6.59B	2.38B
Cash Flow
Free Cash Flow	0.00	505.00M	-1.12B	-843.00M	-445.00M	-1.09B
Operating Cash Flow	0.00	621.00M	-197.00M	71.00M	24.00M	-528.13M
Investing Cash Flow	0.00	-880.00M	-2.95B	-483.00M	-701.00M	-572.57M
Financing Cash Flow	0.00	-221.00M	1.41B	105.00M	3.88B	1.80B

ExaWizards Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 637.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4259, the sentiment is Neutral. The current price of 637 is below the 20-day moving average (MA) of 761.60, below the 50-day MA of 687.16, and above the 200-day MA of 566.17, indicating a neutral trend. The MACD of -11.81 indicates Positive momentum. The RSI at 41.86 is Neutral, neither overbought nor oversold. The STOCH value of 9.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4259.

ExaWizards Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5586	65 Neutral	¥13.33B	87.84	―	―	25.41%	9.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4259	61 Neutral	¥63.30B	-43.44	―	―	8.98%	-581.59%
4476	56 Neutral	¥4.24B	23.89	―	―	10.43%	-65.78%
5572	56 Neutral	¥10.23B	73.76	―	―	60.41%	-27.67%
4382	52 Neutral	¥12.93B	-173.88	―	―	16.29%	93.98%
4425	44 Neutral	¥25.14B	-49.19	―	―	36.08%	-7.71%

ExaWizards Inc. Corporate Events

ExaWizards Transfers HR Tech Business to AI Subsidiary to Sharpen AX Focus

ExaWizards Inc. has approved a simplified absorption-type company split to transfer its HR Tech business, built around the exaBase DX Assessment & Learning talent development service and newer AX-focused programs, to its wholly owned subsidiary Exa Enterprise AI Inc. The move responds to a shift in market demand from digital transformation to AI transformation, as clients seek more advanced AI utilization and talent development solutions.

By consolidating overlapping customer bases and service offerings into Exa Enterprise AI, the group expects faster decision-making, higher development speed, and stronger synergies across planning, development, and sales. The restructuring, effective April 1, 2026, leaves share capital and stock acquisition rights at the parent unchanged and is intended to optimize resource allocation and support sustainable growth in AI-driven HR solutions and enterprise productivity tools.

The most recent analyst rating on (JP:4259) stock is a Buy with a Yen1020.00 price target. To see the full list of analyst forecasts on ExaWizards Inc. stock, see the JP:4259 Stock Forecast page.

ExaWizards Unveils Q3 FY2026/3 Financial Results and Business Progress

ExaWizards Inc. released its financial results presentation for the third quarter of the fiscal year ending March 2026. The materials outline consolidated financial performance, segment progress, and business updates, indicating a structured disclosure of how each business area is advancing and how the company is tracking against its strategic and operational objectives.

The document highlights an executive summary of Q3, detailed consolidated results, and an overview of business segment developments. It also points to ongoing business updates and appendices that frame the company’s current performance trajectory, providing stakeholders with a snapshot of operational progress and the state of its AI-focused business portfolio.

The most recent analyst rating on (JP:4259) stock is a Buy with a Yen1020.00 price target. To see the full list of analyst forecasts on ExaWizards Inc. stock, see the JP:4259 Stock Forecast page.

ExaWizards Swings to Profit and Lifts Outlook on Strong Nine-Month Results

ExaWizards Inc. reported consolidated net sales of ¥8.35 billion for the nine months ended December 31, 2025, up 17.1% year on year, and moved into profitability with operating profit of ¥1.03 billion and profit attributable to owners of parent of ¥695 million, reversing a loss in the prior-year period. The company also strengthened its financial position, with total assets rising to ¥8.34 billion and the equity ratio improving to 44.0%, while maintaining a no-dividend policy for the fiscal year.

The company revised its full-year forecast, now expecting net sales of ¥11.8 billion, a 20.3% increase from the previous year, and operating profit of ¥1.35 billion, signaling confidence in sustained growth and margin improvement. These results and forecasts suggest a successful scaling of its AI-related services business, enhanced capital structure, and improving shareholder value prospects despite the continued decision not to return cash via dividends at this stage.

The most recent analyst rating on (JP:4259) stock is a Buy with a Yen1020.00 price target. To see the full list of analyst forecasts on ExaWizards Inc. stock, see the JP:4259 Stock Forecast page.

ExaWizards Subsidiary Files Clinical Trial Plan for Priority-Reviewed AI Cognitive Diagnostic Tool

ExaWizards’ wholly owned subsidiary ExaMD Inc. has submitted a clinical trial notification to Japan’s Pharmaceuticals and Medical Devices Agency for its AI-powered cognitive function diagnostic support software, a Software as a Medical Device designated by the health ministry for priority review. The trial, targeting up to 100 participants over three months, will assess the tool’s ability to classify individuals as cognitively normal or suspected of cognitive decline using about one minute of free conversation, comparing estimated MMSE scores to measured results while monitoring safety, and the company has already factored the associated costs into its current fiscal year investment plans, indicating no change to its full-year earnings forecast at this stage.

The most recent analyst rating on (JP:4259) stock is a Hold with a Yen840.00 price target. To see the full list of analyst forecasts on ExaWizards Inc. stock, see the JP:4259 Stock Forecast page.