Wedge Holdings Co Ltd

Wedge Holdings maintains a strong liquidity position, with cash and equivalents amounting to ¥576.37 million, representing 15.83% of total assets. The company's liquidity FPT score indicates a healthy balance sheet, supported by a current ratio of 4.63, which is significantly above the industry median. However, the negative operating cash flow of ¥-144.03 million suggests operational challenges that could affect future liquidity.

Profitability metrics for Wedge Holdings show mixed results. The company reported a net income of ¥83.36 million, but this was accompanied by an operating loss of ¥1.40 million. The return on equity (ROE) of 2.82% and return on assets (ROA) of 2.29% are below the industry median, indicating that the company is underperforming in terms of capital efficiency and asset utilization.

Geographically and segment-wise, Wedge Holdings' revenue is concentrated in a single business segment, as disclosed in its financial statements. The company does not provide detailed geographic breakdowns, but its operations are primarily based in Japan. This concentration increases exposure to local market conditions and regulatory changes.

Looking ahead, Wedge Holdings is projected to experience a modest revenue decline in the current fiscal year, with a negative outlook for operating income. The company's capital expenditure is minimal, at ¥-193,000, suggesting a conservative approach to reinvestment. The negative operating cash flow and operating loss indicate that the company may need to rely on external financing or asset sales to fund operations in the near term.

Risk factors for Wedge Holdings include its negative operating cash flow and operating loss, which could lead to liquidity constraints. The company's dilution potential is currently low, with no immediate filing-based flags detected. However, the negative operating cash flow and operating loss suggest that the company may need to raise additional capital in the future, which could result in share dilution.

Recent events and filings for Wedge Holdings include the latest financial results, which show a net income of ¥83.36 million despite an operating loss. The company's last actual EPS was -5.34 JPY, and its last actual revenue was 816.18 million JPY. These figures indicate a challenging operating environment and potential pressure on earnings.

Debt-to-equity ratio of 0.15 is below the cohort median of 0.1, suggesting a conservative leverage profile relative to peers.

Net income improved by 76.0% year-over-year in FY2025, showing a significant recovery from the previous fiscal period.

Free cash flow increased by 76.1% year-over-year in FY2025, indicating improved cash generation capabilities despite negative absolute values.

Cash conversion ratio of -1.73 places the company in the bottom quartile, indicating poor ability to convert earnings to cash.

The company carries a high credit risk flag, suggesting potential difficulties in meeting financial obligations or securing financing.

Return on invested capital is negative at -0.04%, indicating the company fails to generate adequate returns on its capital base.

Revenue ¥200.3M, +2,0% YoY; Operating income −114,7% YoY.

• ▍Revenue ¥200.3M, +2,0% YoY
• ▍Operating income −114,7% YoY
• ▍Net income −274,0% YoY
• ▍Net margin -82.9%

Revenue ¥212.8M, −3,0% YoY; Operating income −722,2% YoY.

• ▍Revenue ¥212.8M, −3,0% YoY
• ▍Operating income −722,2% YoY
• ▍Net income +26,9% YoY
• ▍Net margin -147.8%

Revenue ¥182.1M, −11,6% YoY; Operating income −240,5% YoY.

• ▍Revenue ¥182.1M, −11,6% YoY
• ▍Operating income −240,5% YoY
• ▍Net income −76,9% YoY
• ▍Net margin 4.4%

Revenue ¥224.9M, −12,8% YoY; Operating income +298,1% YoY.

• ▍Revenue ¥224.9M, −12,8% YoY
• ▍Operating income +298,1% YoY
• ▍Net income −118,9% YoY
• ▍Net margin -7.0%

Revenue ¥196.4M; Operating income -¥25.3M.

• ▍Revenue ¥196.4M
• ▍Operating income -¥25.3M
• ▍Net margin 48.6%

Revenue ¥219.4M; Operating income ¥8.1M.

• ▍Revenue ¥219.4M
• ▍Operating income ¥8.1M
• ▍Net margin -196.1%

Revenue ¥206.1M; Operating income ¥14.2M.

• ▍Revenue ¥206.1M
• ▍Operating income ¥14.2M
• ▍Net margin 16.9%

Revenue ¥257.8M; Operating income -¥1.4M.

• ▍Revenue ¥257.8M
• ▍Operating income -¥1.4M
• ▍Net margin 32.3%

Revenue ¥816.2M, −5,2% YoY; Operating income −529,1% YoY.

• ▍Revenue ¥816.2M, −5,2% YoY
• ▍Operating income −529,1% YoY
• ▍Net income +76,0% YoY
• ▍Free cash flow +76,1% YoY
• ▍Net margin -27.8%

Revenue ¥861.0M, +12,4% YoY; Operating income −140,3% YoY.

• ▍Revenue ¥861.0M, +12,4% YoY
• ▍Operating income −140,3% YoY
• ▍Net income −83,8% YoY
• ▍Free cash flow −83,6% YoY
• ▍Net margin -109.5%

Revenue ¥765.9M, +12,2% YoY; Operating income −6,7% YoY.

• ▍Revenue ¥765.9M, +12,2% YoY
• ▍Operating income −6,7% YoY
• ▍Net income −1 030,0% YoY
• ▍Free cash flow −1 154,5% YoY
• ▍Net margin -67.0%

Revenue ¥682.7M, −88,2% YoY; Operating income +103,0% YoY.

• ▍Revenue ¥682.7M, −88,2% YoY
• ▍Operating income +103,0% YoY
• ▍Net income +104,7% YoY
• ▍Free cash flow +101,9% YoY
• ▍Net margin 8.1%