GRCS, Inc. (9250) AI Stock Analysis

• Market Cap: ¥1.59B
• Dividend Yield: N/A
• Average Volume (3M): 2.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: 5.17%
• EPS Growth: N/A
• Country: JP
• Employees: 213
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -327.37
• Shares Outstanding: 1,380,130
• 10 Day Avg. Volume: 3,480
• 30 Day Avg. Volume: 2,540
• PEG Ratio: <0.01
• Price to Book (P/B): -14.22
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 124.04
• 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: 50 Neutral
• Price Target: ¥1,323.00 ▲(12.69% Upside)

The score is held down primarily by weak financial performance—especially the 2025 loss, negative equity and higher debt, and reduced cash generation—despite strong top-line growth. Technicals are a meaningful offset with an uptrend and positive momentum signals, while valuation remains pressured due to losses and no indicated dividend support.

Positive Factors

Recurring subscription revenue

A subscription- and licensing-based model creates durable, predictable revenue and stronger customer lifetime value. Recurring fees support steady ARR, enable multi-year client relationships, and justify ongoing product investment that sustains revenue visibility over months.

Tech-enabled compliance offering

Positioning as a technology and analytics leader in risk and compliance raises barriers to entry and supports differentiated services. Analytics-driven tools and advisory services can create higher switching costs and enable cross-sell, underpinning durable competitive advantage.

Proven cash generation (2024)

A history of strong operating and free cash flow demonstrates the business can convert revenue to cash under normal conditions, supporting investment, working capital and debt servicing. This prior cash-conversion ability is a meaningful structural strength despite recent weakness.

Negative Factors

Negative equity and rising debt

Negative equity and materially higher debt signal weakened capitalization and elevated solvency risk. This reduces financial flexibility, increases refinancing and covenant risks, and constrains capital allocation—structural issues that impair resilience over months.

Deteriorating profitability

Sharp swing to operating losses and a large net loss despite revenue growth indicates margin pressure and inconsistent cost control. Declining gross profit dollars suggest structural margin erosion that undermines sustainable earnings power and cash generation.

Material decline in cash conversion

A steep decline in operating and free cash flow reduces the firm's ability to internally fund operations, capex and debt service. Persistent weak cash conversion would force reliance on external financing, increasing liquidity risk and impacting strategic flexibility.

GRCS, Inc. Business Overview & Revenue Model

Company Description

GRCS, Inc. (9250) is a dynamic company specializing in providing innovative solutions in the field of risk management and compliance services. Operating primarily within the financial services and corporate governance sectors, GRCS offers a suite of products that include risk assessment tools, compliance software, and advisory services aimed at helping organizations navigate complex regulatory environments. The company's commitment to leveraging technology and data analytics positions it as a leader in enhancing operational efficiencies and ensuring robust compliance frameworks for its clients.

How the Company Makes Money

GRCS, Inc. generates revenue through multiple streams, primarily by selling subscription-based software services and consulting packages. The company's core revenue comes from licensing its risk management and compliance software to businesses across various industries, which provides a steady income flow. Additionally, GRCS earns money through consulting services that help clients implement and optimize their risk management strategies. Strategic partnerships with regulatory bodies and industry organizations enhance its credibility and client acquisition, further contributing to its earnings. The company's focus on recurring revenue through software subscriptions fosters long-term relationships with clients, ensuring consistent revenue growth.

GRCS, Inc. Financial Statement Overview

Summary

Strong revenue growth is outweighed by sharply deteriorating profitability in 2025 (negative operating profit and large net loss), a significant balance-sheet weakening (debt up and equity turning negative), and a steep drop in operating/free cash flow versus 2024—together indicating elevated solvency and earnings-quality risk.

Income Statement

Revenue growth has been strong across the period (including very high growth in 2025), but profitability has been volatile. After returning to profit in 2024 (positive operating profit and net income), results deteriorated sharply in 2025 with negative operating profit and a large net loss. Gross profit dollars also declined in 2025 versus 2024, indicating margin/expense pressure despite slightly higher revenue.

Balance Sheet

Leverage and capitalization weakened materially. Total debt rose significantly in 2025 while equity turned negative, a major balance-sheet red flag that reduces financial flexibility. Prior years already showed elevated leverage at times (high debt relative to equity in 2023), and the 2025 shift to negative equity meaningfully increases refinancing and solvency risk.

Cash Flow

Cash generation swung sharply. 2024 produced strong operating cash flow and free cash flow, but 2025 cash flow fell dramatically to low positive levels, and free cash flow growth was deeply negative. While operating and free cash flow were positive in 2025, the steep decline versus 2024 suggests reduced cash conversion and less capacity to fund operations and debt obligations internally.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.27B	3.33B	3.29B	2.78B	2.40B	1.76B
Gross Profit	838.79M	804.68M	1.07B	791.94M	436.46M	476.82M
EBITDA	65.07M	-234.74M	142.01M	-118.86M	-169.74M	111.32M
Net Income	25.27M	-527.90M	112.51M	-280.16M	-209.02M	143.87M
Balance Sheet
Total Assets	2.08B	1.71B	1.92B	1.43B	1.50B	1.27B
Cash, Cash Equivalents and Short-Term Investments	625.27M	530.76M	740.03M	611.46M	847.45M	875.25M
Total Debt	925.55M	1.18B	650.36M	666.38M	568.33M	211.88M
Total Liabilities	1.73B	1.81B	1.51B	1.22B	1.02B	521.77M
Stockholders Equity	343.82M	-95.94M	415.36M	172.91M	444.72M	751.85M
Cash Flow
Free Cash Flow	-126.00M	10.99M	291.78M	-156.97M	-282.18M	158.17M
Operating Cash Flow	-119.00M	20.25M	312.70M	-121.69M	-251.89M	162.29M
Investing Cash Flow	-264.00M	-297.18M	-224.47M	-214.25M	19.80M	-8.79M
Financing Cash Flow	135.33M	70.39M	41.59M	104.27M	204.23M	467.51M

GRCS, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1174.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9250, the sentiment is Neutral. The current price of 1174 is above the 20-day moving average (MA) of 1139.40, above the 50-day MA of 1036.52, and below the 200-day MA of 1221.58, indicating a neutral trend. The MACD of 74.79 indicates Positive momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 16.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9250.

GRCS, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3974	73 Outperform	¥2.82B	14.35	―	2.35%	0.40%	21.21%
3670	67 Neutral	¥2.56B	8.98	―	2.76%	-9.03%	53.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6555	61 Neutral	¥1.91B	-7.60	―	―	8.27%	-295.89%
4016	57 Neutral	¥2.06B	20.30	―	3.07%	2.07%	11.34%
4444	56 Neutral	¥1.84B	-34.79	―	―	5.17%	-148.66%
9250	50 Neutral	¥1.59B	-3.02	―	―	5.17%	―

GRCS, Inc. Corporate Events

GRCS Swings to Loss and Negative Equity but Forecasts Recovery in FY2026

GRCS Inc. reported a modest 1.4% increase in net sales to ¥3,333 million for the fiscal year ended November 30, 2025, but swung to a significant loss, posting an operating loss of ¥67 million and a loss attributable to owners of the parent of ¥527 million, compared with a profit in the previous year. The company’s financial position deteriorated, with total assets declining to ¥1,713 million, net assets turning negative at ¥95 million, and the equity ratio falling to -7.9%, while it continued its policy of not paying dividends. Despite the weak results and negative equity, GRCS maintains a positive outlook for the fiscal year ending November 30, 2026, forecasting a 10.3% rise in net sales to ¥3,678 million and a return to profitability with operating profit of ¥119 million and basic earnings per share of ¥50.33, signaling an anticipated recovery that will be closely watched by investors concerned about balance sheet strength and future growth potential.

The most recent analyst rating on (JP:9250) stock is a Hold with a Yen1326.00 price target. To see the full list of analyst forecasts on GRCS, Inc. stock, see the JP:9250 Stock Forecast page.