Manageable LeverageThe balance sheet retains relatively low-to-moderate debt levels and modest leverage in 2025, which is a durable source of financial resilience. With manageable debt, the company has more optionality to refinance, raise capital or restructure operations without immediate solvency pressure, preserving runway while it addresses operating losses.

High Gross MarginsSustained high gross margins in 2024–2025 indicate structural pricing power or a capital-light content model, which supports eventual profit recovery if operating expenses are controlled. High gross margin provides a durable cushion for margin restoration and prioritizing profitable product or customer segments over time.

Historic Cash Generation AbilityThe business previously generated positive operating and free cash flow in 2020–2022, showing the underlying model can be cash generative. That historical track record implies that if revenue declines are stabilized and cost structure is right-sized, management has a path to restore cash generation without requiring structural business reinvention.

Bears Say

Multi-year Revenue DeclineConsecutive annual revenue declines from 2022–2025 signal persistent demand or monetization challenges. Shrinking top-line reduces operating leverage, limits reinvestment capacity, and makes margin recovery harder; absent evidence of a durable revenue inflection, this trend threatens medium-term viability of current business lines.

Worsening Cash BurnProgressively negative operating and free cash flow through 2025 represent structural cash consumption, increasing reliance on external funding or asset sales. Sustained cash burn reduces strategic flexibility, raises refinancing risk, and forces either dilutive financing or sharp cost cuts that can impair long-term growth prospects.

Erosion Of Equity BaseA meaningful decline in equity from 2022–2025 weakens capitalization and the firm's shock-absorption capacity. Reduced equity limits borrowing capacity and increases the risk that future losses trigger covenant breaches or distress financing, making it harder to invest in recovery initiatives without significant external support.

6081 FAQ

What was Allied Architects, Inc.’s price range in the past 12 months?

Allied Architects, Inc. lowest stock price was ¥131.00 and its highest was ¥466.00 in the past 12 months.

What is Allied Architects, Inc.’s market cap?

Allied Architects, Inc.’s market cap is ¥6.64B.

When is Allied Architects, Inc.’s upcoming earnings report date?

Allied Architects, Inc.’s upcoming earnings report date is May 20, 2026 which is in 86 days.

How were Allied Architects, Inc.’s earnings last quarter?

Allied Architects, Inc. released its earnings results on Feb 13, 2026. The company reported -¥12.79 earnings per share for the quarter, missing the consensus estimate of N/A by -¥12.79.

Is Allied Architects, Inc. overvalued?

According to Wall Street analysts Allied Architects, Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Allied Architects, Inc. pay dividends?

Allied Architects, Inc. does not currently pay dividends.

What is Allied Architects, Inc.’s EPS estimate?

Allied Architects, Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Allied Architects, Inc. have?

Allied Architects, Inc. has 15,899,482 shares outstanding.

What happened to Allied Architects, Inc.’s price movement after its last earnings report?

Allied Architects, Inc. reported an EPS of -¥12.79 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -6.34%.

Which hedge fund is a major shareholder of Allied Architects, Inc.?

Currently, no hedge funds are holding shares in JP:6081

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Allied Architects, Inc.

Allied Architects, Inc. engages in marketing DX support business in Japan, China, and internationally. The company provides SaaS-type products; Letro and Lertro Studio, a video production tool service; Monipla, a platform for public relations and product development; and echoes, a service for instant win campaigns, as well as solutions for SNS advertising and account operations; web promotions; and fan marketing solutions. It also offers Creadits, an advertising platform; other marketing tools, including WEIQ, Othello, and BoJapan; and other account and marketing support services. The company was incorporated in 2005 and is headquartered in Tokyo, Japan.