AI CROSS Inc (4476) AI Stock Analysis

• Market Cap: ¥4.24B
• Dividend Yield: N/A
• Average Volume (3M): 11.24K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 1.26
• Revenue Growth: 10.43%
• EPS Growth: -65.78%
• Country: JP
• Employees: 56
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 11.75
• Shares Outstanding: 4,087,850
• 10 Day Avg. Volume: 12,470
• 30 Day Avg. Volume: 11,236
• PEG Ratio: 3.22
• Price to Book (P/B): 3.19
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 42.22
• 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: 56 Neutral
• Price Target: ¥1,630.00 ▼(-1.33% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is mainly supported by improving operating performance and a generally solid balance sheet, but it is held back by cash-flow volatility and thinner net margins. Technically, the stock is in a clear downtrend with weak momentum, and valuation is relatively high (P/E ~36) without dividend support.

Positive Factors

Revenue Growth

Sustained and re-accelerating revenue through 2025 indicates persistent product-market fit in AI-enabled communication/document workflows. Durable top-line momentum supports scale, investment in product R&D, and longer-term customer engagements that underpin recurring revenue and growth visibility.

Improving Operating Profitability

Rising gross and operating margins show the business is extracting more value per sale, reflecting operating leverage and possibly higher-margin product mix. Improved EBIT provides steady cushion for reinvestment and reduces dependency on financing to fund growth, strengthening medium-term earnings quality.

Solid Balance Sheet

Low-to-moderate leverage and a sizable equity base give the company financial flexibility to pursue product development and strategic investments. A manageable debt position supports credit access and resilience to shocks, helping sustain operations during revenue cyclicality or temporary cash flow swings.

Negative Factors

Thin Net Margins

Low net margins constrain the company’s ability to convert operating gains into free cash and shareholder returns. Structural pressure below EBIT—such as non-operating costs or taxes—reduces buffer against downturns and limits internal funding for R&D, hiring, or debt reduction over the medium term.

Volatile Cash Generation

Irregular operating cash flow undermines predictability of funding for capex, working capital, and debt service. Periodic negative or sharply lower OCF increases reliance on external financing and magnifies risk if margins slip, complicating planning and weakening resilience over a 2–6 month horizon.

Step-up in Borrowing

A notable rise in borrowing after years of low debt reduces the company’s financial cushion and raises interest expense risk. If cash generation remains volatile or margins stay thin, higher leverage could constrain strategic options and increase vulnerability to adverse market or operational shocks.

AI CROSS Inc Business Overview & Revenue Model

Company Description

AI CROSS Inc. engages in the business communication platform business in Japan. The company is involved in the development and operation of messaging services; and planning, development, and operation of AI Analytics services. Its products include Zettai-Reach SMS, an SMS sending/receiving service for businesses; and HYOUMAN BOX that provides HR management service. The company was incorporated in 2015 and is based in Tokyo, Japan.

How the Company Makes Money

AI CROSS Inc generates revenue through multiple channels, including software licensing, subscription services, and consulting fees. The company's primary revenue streams come from licensing its AI software to enterprises, allowing them to integrate advanced analytics into their operations. Additionally, it offers subscription-based access to its cloud-based platforms, which provide ongoing support and updates. Consulting services to help clients implement AI solutions and optimize their use of the technology also contribute significantly to its earnings. Strategic partnerships with key players in various sectors further bolster its revenue, as these collaborations often lead to joint ventures and expanded market reach.

AI CROSS Inc Financial Statement Overview

Summary

Fundamentals are decent but uneven: revenue growth re-accelerated and operating profitability improved (EBIT margin ~8.9% in 2025), and leverage is still manageable (debt-to-equity ~0.22). Offsetting this are thin net margins (~4% in 2024–2025), a meaningful debt increase in 2025, and volatile cash generation including a sharp operating cash flow drop in 2025 and a negative cash year in 2022.

Income Statement

Revenue has expanded over the period (2020–2025), with growth re-accelerating in 2025 after a softer 2024. Profitability is positive and improving at the operating level, with gross margin trending higher since 2022 and EBIT margin rising to ~8.9% in 2025. Offsetting this, net margin remains thin (~4% in 2024–2025) and is well below the 2021 peak, suggesting higher costs below EBIT or weaker non-operating/tax dynamics versus earlier years.

Balance Sheet

The balance sheet is generally solid with a sizable equity base and low-to-moderate leverage. Debt was very low from 2021–2024 but increased meaningfully in 2025; even so, debt remains manageable relative to equity (debt-to-equity ~0.22 in 2025). The main watch item is the step-up in borrowing in 2025 versus prior years’ conservatism, which reduces financial flexibility if profitability or cash generation weakens.

Cash Flow

Cash generation is mixed. Free cash flow has often tracked net income closely (near 1.0x in 2023–2025), which supports earnings quality. However, operating cash flow dropped sharply in 2025 versus 2023–2024, and operating cash flow covered a relatively small portion of accounting profits in 2025, implying working-capital drag or less favorable cash timing. The 2022 period also showed negative operating and free cash flow, highlighting volatility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.85B	4.15B	3.71B	3.25B	3.31B	2.42B
Gross Profit	1.44B	1.55B	1.33B	1.05B	989.20M	877.45M
EBITDA	303.84M	414.19M	332.68M	279.40M	188.39M	540.48M
Net Income	91.47M	165.25M	148.49M	156.72M	95.31M	341.14M
Balance Sheet
Total Assets	2.33B	3.08B	2.39B	2.12B	2.04B	1.98B
Cash, Cash Equivalents and Short-Term Investments	1.54B	1.82B	1.56B	1.25B	1.21B	1.33B
Total Debt	0.00	437.00M	2.69M	9.08M	18.48M	36.87M
Total Liabilities	534.42M	1.14B	681.11M	445.13M	403.33M	439.68M
Stockholders Equity	1.79B	1.95B	1.71B	1.68B	1.63B	1.54B
Cash Flow
Free Cash Flow	0.00	147.13M	342.00M	337.59M	-63.43M	133.34M
Operating Cash Flow	0.00	150.98M	342.93M	360.66M	-4.27M	187.10M
Investing Cash Flow	0.00	-319.40M	-24.20M	-29.31M	-94.38M	96.05M
Financing Cash Flow	0.00	420.58M	-9.96M	-289.11M	-15.74M	-12.49M

AI CROSS Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1652.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4476, the sentiment is Negative. The current price of 1652 is above the 20-day moving average (MA) of 1349.50, above the 50-day MA of 1538.52, and below the 200-day MA of 1716.76, indicating a bearish trend. The MACD of -174.80 indicates Positive momentum. The RSI at 14.96 is Positive, neither overbought nor oversold. The STOCH value of 8.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4476.

AI CROSS Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4060	74 Outperform	¥6.87B	25.18	―	0.57%	21.03%	32.29%
5033	66 Neutral	¥4.93B	13.38	―	―	7.60%	19.13%
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%
4448	58 Neutral	¥13.02B	60.03	―	―	14.63%	-760.87%
4476	56 Neutral	¥4.24B	23.89	―	―	10.43%	-65.78%
5572	56 Neutral	¥10.23B	73.76	―	―	60.41%	-27.67%