Twenty-four seven, Inc. (7074) AI Stock Analysis

• Market Cap: ¥1.93B
• Dividend Yield: N/A
• Average Volume (3M): 56.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: -21.04%
• EPS Growth: 76.41%
• Country: JP
• Employees: 129
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -2.98
• Shares Outstanding: 8,486,200
• 10 Day Avg. Volume: 18,880
• 30 Day Avg. Volume: 56,760
• PEG Ratio: 0.15
• Price to Book (P/B): 23.05
• Price to Sales (P/S): 0.98
• P/FCF Ratio: -6.64
• 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: 44 Neutral
• Price Target: ¥222.00 ▲(13.27% Upside)

The score is primarily constrained by weak financial performance—declining revenue, ongoing losses, and sustained cash burn—despite some improvement in loss magnitude in 2025. Technicals are neutral but still pressured by longer-term downtrend signals, and valuation is limited by negative earnings and no stated dividend yield.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet reduces financial risk and refinancing pressure, providing stability and flexibility for future strategic initiatives.

Narrowing Losses

Narrowing losses indicate potential operational improvements, suggesting a possible path to profitability if the trend continues.

Reduced Cash Burn

Reduced cash burn improves financial sustainability, potentially decreasing reliance on external funding and enhancing long-term viability.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates ongoing financial strain, necessitating external funding to sustain operations, which could impact long-term growth.

Declining Revenue

Declining revenue limits operating leverage and growth potential, making it challenging to achieve profitability and sustain competitive market positioning.

Eroding Shareholder Value

Declining equity reflects ongoing losses, eroding shareholder value and potentially impacting investor confidence and future capital raising efforts.

Twenty-four seven, Inc. Business Overview & Revenue Model

Company Description

Twenty-four seven Inc. provides store, Web, and application related services in Japan. It operates 24/7 Workout, a personal training gym; 24/7 English, a personal English conversation school; and online shops for dieting and health. Twenty-four seven Inc. was incorporated in 2007 and is headquartered in Tokyo, Japan. As of May 16, 2024, Twenty-four seven Inc. operates as a subsidiary of Inayoshi Capital Partners.

How the Company Makes Money

Twenty-four seven, Inc. generates revenue through a diversified model primarily based on subscription fees for its software solutions and IT services. Key revenue streams include recurring subscriptions for cloud-based services, licensing fees for proprietary software, and consulting fees for bespoke technology solutions. The company also partners with other technology firms to co-develop solutions, which contributes to its revenue through joint ventures and shared royalties. Strategic partnerships with industry leaders and a strong focus on customer retention support its financial stability and growth.

Twenty-four seven, Inc. Financial Statement Overview

Summary

Overall fundamentals are weak: multi-year revenue contraction, persistent operating and net losses, and materially negative operating/free cash flow (worsening again in 2025). Balance-sheet leverage is modest, but equity has eroded sharply, reducing flexibility despite narrower losses in 2025.

Income Statement

Revenue has been shrinking for multiple years (from 2020 to 2025), with another decline in 2025. Profitability is consistently weak: operating profit and net income are negative every year shown, although losses narrowed materially in 2025 versus 2024 (net margin improved from about -17% to about -10%). A key concern is structural margin compression—gross margin fell meaningfully in 2025 versus 2024—suggesting the path to sustainable profitability is still challenged despite the reduced net loss.

Balance Sheet

Leverage looks modest overall, with debt only appearing in 2025 and still at a manageable level versus equity (debt is roughly half of equity). However, equity has declined sharply since 2021, reflecting cumulative losses, and returns on equity remain deeply negative across the period. Total assets have also trended down since 2021, which, together with shrinking equity, limits balance-sheet flexibility if losses persist.

Cash Flow

Cash generation is a major weak spot: operating cash flow is negative in 2022–2025 and worsened again in 2025 versus 2024. Free cash flow is also consistently negative over the last four years and deteriorated significantly in 2025, indicating continued cash burn and likely reliance on external funding or balance-sheet resources. The only clear positive in the history provided is 2021, when operating and free cash flow were positive, but that improvement has not been sustained.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.18B	2.09B	2.53B	3.21B	4.24B	5.46B
Gross Profit	648.40M	518.38M	929.46M	1.33B	1.89B	2.70B
EBITDA	-193.63M	-177.94M	-362.15M	-359.00M	-404.00M	99.00M
Net Income	-192.99M	-209.78M	-435.66M	-480.59M	-1.69B	-136.71M
Balance Sheet
Total Assets	947.97M	1.07B	1.03B	1.15B	1.63B	3.64B
Cash, Cash Equivalents and Short-Term Investments	558.63M	505.46M	651.32M	731.35M	1.10B	1.91B
Total Debt	0.00	45.54M	0.00	0.00	0.00	0.00
Total Liabilities	776.89M	983.59M	878.94M	1.02B	1.30B	1.61B
Stockholders Equity	171.07M	89.37M	147.81M	129.61M	333.79M	2.03B
Cash Flow
Free Cash Flow	0.00	-310.35M	-520.50M	-640.21M	-777.26M	214.79M
Operating Cash Flow	0.00	-145.87M	-498.36M	-558.91M	-715.31M	342.28M
Investing Cash Flow	0.00	-143.62M	-29.03M	-75.34M	-94.13M	-144.09M
Financing Cash Flow	0.00	143.63M	447.37M	264.57M	1.92M	1.44M

Twenty-four seven, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 196.00
• 50DMA: Positive
• 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:7074, the sentiment is Neutral. The current price of 196 is below the 20-day moving average (MA) of 227.50, below the 50-day MA of 225.84, and below the 200-day MA of 258.81, indicating a neutral trend. The MACD of 1.38 indicates Negative momentum. The RSI at 52.30 is Neutral, neither overbought nor oversold. The STOCH value of 66.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7074.

Twenty-four seven, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6537	63 Neutral	¥2.52B	72.14	―	―	27.27%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2300	61 Neutral	¥2.70B	114.28	―	2.11%	0.33%	-80.32%
6186	61 Neutral	¥2.19B	-54.84	―	3.76%	-2.06%	-109.18%
2196	54 Neutral	¥3.80B	-14.76	―	―	-4.35%	-132.57%
7074	44 Neutral	¥1.93B	-9.21	―	―	-21.04%	76.41%
7578	44 Neutral	¥2.10B	4.20	―	―	-15.38%	―