Livesense Inc. (6054) AI Stock Analysis

• Market Cap: ¥3.84B
• Dividend Yield: N/A
• Average Volume (3M): 44.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -5.08%
• EPS Growth: -180.19%
• Country: JP
• Employees: 245
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 11.53
• Shares Outstanding: 28,160,000
• 10 Day Avg. Volume: 45,460
• 30 Day Avg. Volume: 44,776
• PEG Ratio: 1.32
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.58
• P/FCF Ratio: -5.02
• 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: 64 Neutral
• Price Target: ¥139.00 ▲(16.81% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held back primarily by weakened financial performance (profitability deterioration and negative 2025 cash flow) despite a very conservative, low-debt balance sheet. Technicals are a meaningful positive with a clear uptrend and constructive momentum, while valuation is constrained by a negative P/E and no provided dividend yield.

Positive Factors

Conservative balance sheet

Minimal leverage and a sizable equity base provide durable financial flexibility: the company can withstand revenue or margin shocks, fund targeted investments or opportunistic M&A without immediate refinancing, and preserve optionality over the next several months.

High gross margins

Sustained ~75%+ gross margins signal robust unit economics and pricing power. That margin cushion helps absorb operating-cost volatility and supports a path back to profitability if revenue stabilizes, underpinning long-term margin recovery potential.

Prior multi-year growth and profitable history

Historical double‑digit net margins and prior multi-year growth demonstrate the business model can scale profitably. This track record indicates product/market fit and operational capability, improving chances of operational recovery over a 2–6 month horizon if management addresses current drags.

Negative Factors

Revenue decline in 2025

A drop in top-line in 2025 reduces operating scale and weakens leverage on fixed costs. Persistent or worsening revenue declines would impede margin recovery, limit reinvestment capacity, and heighten execution risk for the coming months if demand or competitive pressures persist.

Profitability swung to a loss

The shift from prior double‑digit margins to a slight loss indicates structural pressure on operating performance—either cost base, revenue mix, or both. Sustained negative margins undermine retained earnings and the company's ability to self-finance growth or absorb shocks.

Negative operating and free cash flow in 2025

Meaningfully negative operating and free cash flow in 2025 creates a durable constraint: despite low debt, the company may need external funding to support operations or investments, increasing capital‑raising risk and reducing buffer against further operational setbacks.

Livesense Inc. Business Overview & Revenue Model

Company Description

Livesense Inc. engages in the Internet media business in Japan. The company operates various human resource domains, such as Tenshoku Kaigi to bring transparency to company information and enhance the accuracy of matching with reviews; Tenshoku Draft to provide competitive bidding-type career service; and Machbaito and Tenshoku Navi that offers job information. It also operates various real estate domains. Livesense Inc. was founded in 2006 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Livesense Inc. generates revenue through a combination of subscription-based services and project-based contracts. The company's primary revenue streams include fees from its analytics platforms, which provide businesses and municipalities with insights derived from collected data. Additionally, it earns income from consulting services related to the implementation of its IoT solutions and data management systems. Significant partnerships with local governments and private sector organizations further bolster its earnings, as these collaborations often lead to large-scale projects that require ongoing support and maintenance.

Livesense Inc. Financial Statement Overview

Summary

Balance sheet strength is a key support (minimal debt and stable equity), but fundamentals have weakened: revenue declined in 2025, margins turned negative, and profitability swung to a slight loss. Cash flow adds risk, with operating/free cash flow turning meaningfully negative in 2025 after volatility in prior years.

Income Statement

Profitability has weakened materially: after strong earnings in 2022–2023 (double‑digit net margins), the company fell to low profitability in 2024 and slipped back to a slight loss in 2025 (annual report), with negative operating and EBITDA margins. Revenue momentum also turned down, moving from solid growth in 2022–2024 to a decline in 2025. A key positive is consistently high gross margin (~75%+), indicating strong unit economics, but the recent cost structure and volatility in operating performance weigh on the score.

Balance Sheet

The balance sheet is conservatively positioned with essentially no leverage (debt-to-equity near zero and total debt minimal, including zero debt in 2025). Equity has remained sizable and relatively stable versus total assets, which supports financial flexibility. The main drawback is the sharp swing in returns on equity—from strong positive levels in 2022–2024 to slightly negative in 2025—signaling that profitability, not balance sheet strength, is the current pressure point.

Cash Flow

Cash generation is volatile and recently deteriorated: operating cash flow and free cash flow were solidly positive in 2022 and positive again in 2024, but were close to breakeven/negative in 2023 and turned meaningfully negative in 2025 (annual report). The recent negative operating cash flow alongside near-breakeven earnings points to weaker cash conversion and potentially higher working-capital or expense drag. Overall, cash flow inconsistency and the 2025 outflow reduce confidence despite prior periods of strong generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.01B	5.64B	6.32B	5.65B	4.76B	4.18B
Gross Profit	4.48B	4.21B	4.74B	4.70B	4.00B	3.44B
EBITDA	-187.49M	-366.70M	113.00M	744.50M	427.05M	-950.03M
Net Income	-291.99M	-22.27M	197.34M	716.23M	537.54M	-943.94M
Balance Sheet
Total Assets	4.68B	4.73B	4.94B	4.81B	4.47B	3.87B
Cash, Cash Equivalents and Short-Term Investments	3.29B	3.64B	3.93B	3.65B	3.56B	2.71B
Total Debt	9.80M	0.00	19.60M	29.40M	34.30M	39.20M
Total Liabilities	673.59M	523.56M	734.53M	827.00M	1.11B	775.29M
Stockholders Equity	3.98B	4.17B	4.19B	3.98B	3.36B	3.10B
Cash Flow
Free Cash Flow	0.00	-652.75M	264.49M	-5.85M	731.03M	-361.01M
Operating Cash Flow	0.00	-652.48M	264.49M	3.29M	731.03M	-361.01M
Investing Cash Flow	0.00	376.15M	23.76M	88.78M	128.84M	19.34M
Financing Cash Flow	0.00	-9.80M	-9.80M	-4.90M	-4.90M	15.00M

Livesense Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 119.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6054, the sentiment is Negative. The current price of 119 is below the 20-day moving average (MA) of 136.35, below the 50-day MA of 126.44, and below the 200-day MA of 134.37, indicating a neutral trend. The MACD of 6.27 indicates Positive momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 31.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6054.

Livesense Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2120	72 Outperform	¥26.42B	7.57	9.76%	5.66%	-18.39%	―
4194	67 Neutral	¥280.41B	19.63	―	―	23.28%	26.56%
7082	65 Neutral	¥6.59B	18.99	―	―	3.38%	47.24%
6054	64 Neutral	¥3.84B	-147.16	―	―	-5.08%	-180.19%
5139	62 Neutral	¥19.35B	26.23	―	―	28.90%	29.06%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4176	58 Neutral	¥6.83B	27.11	―	―	42.83%	26.89%