EYEZ INC. (5242) AI Stock Analysis

• Market Cap: ¥1.06B
• Dividend Yield: N/A
• Average Volume (3M): 2.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -8.47%
• EPS Growth: -2437.96%
• Country: JP
• Employees: 71
• Sector: Technology
• Sector Strength: 88
• Industry: Advertising Agencies
• EPS (TTM): -26.25
• Shares Outstanding: 1,026,100
• 10 Day Avg. Volume: 2,340
• 30 Day Avg. Volume: 2,353
• PEG Ratio: 0.04
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 1.10
• P/FCF Ratio: -15.99
• 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: 48 Neutral
• Price Target: ¥1,091.00 ▲(6.86% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by the latest-year reset in fundamentals—return to losses and negative cash flow—despite strong gross margins and a still-manageable balance sheet. Technical signals are mixed/neutral (some short-term support but longer-term downtrend), and valuation is constrained by a negative P/E and no stated dividend yield.

Positive Factors

High Gross Margins

Gross margins near 89–92% indicate strong unit economics and pricing power for its services. That structural margin advantage creates a durable buffer to absorb SG&A or client churn, supporting quicker recovery to profitability as revenue stabilizes and enabling operating leverage over time.

Sustained Revenue Growth

Long-term top-line expansion and reported re-acceleration show persistent market demand and the company's ability to scale its offerings. Durable revenue momentum supports investment in service capability, spreads fixed costs, and underpins medium-term recovery of margins and cash generation.

Balance-Sheet Flexibility

Moderate leverage and a track record of operating with no debt provide financial optionality. That flexibility reduces default risk, allows tactical use of financing, and gives management room to support operations or invest through downturns without immediate solvency pressure.

Negative Factors

Return to Losses

The material shift to operating and net losses in 2025 erodes retained earnings and limits internal reinvestment capacity. If losses persist, management faces harder trade-offs between cost cuts and growth investments, and the business becomes more reliant on external financing to sustain operations.

Cash-Flow Weakness

Negative operating and free cash flow in the latest period signals recent cash burn and weaker conversion of revenue to cash. Persistent cash outflows increase reliance on debt or equity, constrain capital for marketing or product development, and heighten liquidity and refinancing risk.

Earnings Volatility

Severe EPS decline and recent revenue contraction point to volatile earnings quality and execution risk. This volatility complicates planning, raises the likelihood of future earnings misses, and reduces confidence that high gross margins will consistently translate into stable net profits and cash flow.

EYEZ INC. Business Overview & Revenue Model

Company Description

EYEZ,INC. operates various advertising industry platforms in Japan. The company operates Media Radar, an advertising industry platform; Trami, a word-of-mouth marketing platform; Cloud Radar, a cloud service platform; and Global Radar, a global countermeasure service platform. It also operates Weekle, an activity or experience services platform; mamaPRESS, an information media for mothers; and Toramaga, an information media for women, as well as provides management-based advertising agency services. The company was incorporated in 2007 and is based in Shibuya, Japan.

How the Company Makes Money

EYEZ INC. generates revenue through the sale of its proprietary smart eyewear products, which cater to a range of consumer and enterprise markets. The company's key revenue streams include direct-to-consumer sales via its e-commerce platform and retail partnerships, as well as business-to-business sales through collaborations with enterprises seeking AR and VR solutions. Additionally, EYEZ INC. engages in strategic partnerships with tech firms to integrate its optical solutions into third-party devices, expanding its market reach and creating additional licensing and technology integration revenue. The company's earnings are further bolstered by its continuous investment in research and development, which drives innovation and maintains its competitive edge in the rapidly evolving tech landscape.

EYEZ INC. Financial Statement Overview

Summary

Strong long-term revenue growth and exceptionally high gross margins (~89–92%) are positives, but 2025 showed a sharp deterioration to operating and net losses (~-7% net margin). Cash flow also weakened materially with negative operating/free cash flow in 2025, increasing financial risk despite a relatively moderate balance sheet.

Income Statement

Revenue growth has been solid over the longer term (strong expansion in 2021–2022 and a re-acceleration in 2025), and gross margins remain exceptionally high (~89–92%), indicating strong underlying unit economics. However, profitability has deteriorated sharply: after modest profits in 2023–2024, 2025 swung to an operating loss and a net loss (about -7% net margin). The pattern suggests earnings are volatile and currently under pressure despite healthy top-line scale.

Balance Sheet

Leverage is currently moderate, with debt at roughly one-third of equity in 2025 and a sizable equity base relative to assets. The company also demonstrated it can run with no debt (2023–2024), which is a positive sign of balance-sheet flexibility. The main watch-out is the reintroduction of debt in 2025 alongside a return to losses, which can reduce financial cushion if weaker performance persists.

Cash Flow

Cash generation is inconsistent. Operating and free cash flow were strong in 2022 and positive again in 2024, but turned negative in 2023 and deteriorated further in 2025, indicating recent cash burn. While free cash flow has sometimes tracked reported earnings reasonably well in profitable years, the latest period shows negative operating cash flow alongside net losses, increasing reliance on external funding or balance-sheet resources.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	704.83M	965.73M	1.04B	1.02B	847.39M	605.42M
Gross Profit	645.52M	877.88M	942.46M	919.10M	760.52M	535.58M
EBITDA	-19.20M	-36.97M	38.23M	45.78M	161.74M	80.83M
Net Income	-29.19M	-68.01M	27.02M	27.19M	96.25M	47.41M
Balance Sheet
Total Assets	1.08B	1.09B	955.78M	930.75M	979.80M	472.49M
Cash, Cash Equivalents and Short-Term Investments	512.10M	547.45M	620.49M	560.10M	683.26M	245.86M
Total Debt	213.00M	213.00M	0.00	0.00	159.01M	180.07M
Total Liabilities	455.15M	489.33M	291.67M	296.22M	489.09M	381.63M
Stockholders Equity	627.15M	600.27M	664.11M	634.53M	490.72M	90.87M
Cash Flow
Free Cash Flow	0.00	-66.41M	64.77M	-76.12M	191.34M	54.52M
Operating Cash Flow	0.00	-63.41M	65.47M	-58.45M	192.66M	74.01M
Investing Cash Flow	0.00	-256.85M	-7.66M	-22.33M	-37.80M	-50.20M
Financing Cash Flow	0.00	217.17M	2.56M	-42.38M	282.54M	11.03M

EYEZ INC. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1021.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5242, the sentiment is Negative. The current price of 1021 is below the 20-day moving average (MA) of 1037.30, below the 50-day MA of 1066.46, and below the 200-day MA of 1360.47, indicating a bearish trend. The MACD of -13.72 indicates Negative momentum. The RSI at 46.25 is Neutral, neither overbought nor oversold. The STOCH value of 77.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5242.

EYEZ INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7067	69 Neutral	¥1.58B	62.94	―	1.00%	5.79%	-30.56%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
7069	60 Neutral	¥3.08B	7.59	―	―	-4.44%	―
9244	60 Neutral	¥1.37B	7.74	―	―	4.93%	―
4170	55 Neutral	¥2.86B	98.58	―	―	-3.17%	-535.65%
5242	48 Neutral	¥1.06B	-9.90	―	―	-8.47%	-2437.96%
9235	43 Neutral	¥4.29B	-15.53	―	―	49.01%	-21.56%