Valuation Update With 7 Day Price Move • Apr 21
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥2,558, the stock trades at a trailing P/E ratio of 67.9x. Average trailing P/E is 19x in the Interactive Media and Services industry in Japan. Total returns to shareholders of 355% over the past three years. New Risk • Apr 18
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 17% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (13% average weekly change). Minor Risk Shareholders have been diluted in the past year (17% increase in shares outstanding). Reported Earnings • Apr 15
First quarter 2026 earnings released: EPS: JP¥15.94 (vs JP¥2.19 in 1Q 2025) First quarter 2026 results: EPS: JP¥15.94 (up from JP¥2.19 in 1Q 2025). Revenue: JP¥1.22b (up 24% from 1Q 2025). Net income: JP¥291.0m (up JP¥255.5m from 1Q 2025). Profit margin: 24% (up from 3.6% in 1Q 2025). The increase in margin was primarily driven by higher revenue. Announcement • Apr 11
note inc. announced that it has received ¥2.212 billion in funding from Kadokawa Corporation On April 9, 2026, note inc. closed the transaction. Announcement • Apr 07
note inc. to Report Q1, 2026 Results on Apr 14, 2026 note inc. announced that they will report Q1, 2026 results on Apr 14, 2026 Reported Earnings • Mar 03
Full year 2025 earnings released: EPS: JP¥26.79 (vs JP¥6.38 in FY 2024) Full year 2025 results: EPS: JP¥26.79 (up from JP¥6.38 in FY 2024). Revenue: JP¥4.14b (up 25% from FY 2024). Net income: JP¥440.0m (up 349% from FY 2024). Profit margin: 11% (up from 3.0% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 124% per year but the company’s share price has only increased by 34% per year, which means it is significantly lagging earnings growth. Board Change • Mar 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 1 highly experienced director. Outside Independent Director Minako Takekawa was the last director to join the board, commencing their role in 2023. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Jan 14
note inc. Provides Consolidated Earnings Guidance for the Fiscal Year Ending November 30, 2026 (From December 1, 2025 to November 30, 2026) note inc. provided Consolidated earnings guidance for the Fiscal Year Ending November 30, 2026 (from December 1, 2025 to November 30, 2026). For the year, the company expects Net sales JPY 5,600 Million, Operating profit JPY 700 Million, Profit (loss) attributable to owners of parent JPY 850 Million and Basic earnings per share JPY 46.76. Reported Earnings • Jan 14
Full year 2025 earnings released: EPS: JP¥26.79 (vs JP¥6.38 in FY 2024) Full year 2025 results: EPS: JP¥26.79 (up from JP¥6.38 in FY 2024). Revenue: JP¥4.14b (up 25% from FY 2024). Net income: JP¥440.0m (up 349% from FY 2024). Profit margin: 11% (up from 3.0% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 124% per year but the company’s share price has only increased by 72% per year, which means it is significantly lagging earnings growth. Announcement • Jan 13
note inc., Annual General Meeting, Feb 28, 2026 note inc., Annual General Meeting, Feb 28, 2026. New Risk • Dec 02
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 18% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (13% average weekly change). Minor Risk Shareholders have been diluted in the past year (18% increase in shares outstanding). Announcement • Nov 26
note inc. to Report Fiscal Year 2025 Results on Jan 13, 2026 note inc. announced that they will report fiscal year 2025 results on Jan 13, 2026 Reported Earnings • Oct 08
Third quarter 2025 earnings released: EPS: JP¥8.54 (vs JP¥3.32 in 3Q 2024) Third quarter 2025 results: EPS: JP¥8.54 (up from JP¥3.32 in 3Q 2024). Revenue: JP¥1.08b (up 26% from 3Q 2024). Net income: JP¥142.0m (up 178% from 3Q 2024). Profit margin: 13% (up from 6.0% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the Interactive Media and Services industry in Japan. Buy Or Sell Opportunity • Aug 15
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.7% to JP¥1,377. The fair value is estimated to be JP¥1,754, however this is not to be taken as a buy recommendation but rather should be used as a guide only. For the next 3 years, revenue is forecast to grow by 19% per annum. Earnings are also forecast to grow by 51% per annum over the same time period. Announcement • Jul 29
note inc. to Report Q3, 2025 Results on Oct 07, 2025 note inc. announced that they will report Q3, 2025 results on Oct 07, 2025 Reported Earnings • Jul 10
Second quarter 2025 earnings released: EPS: JP¥3.98 (vs JP¥3.32 in 2Q 2024) Second quarter 2025 results: EPS: JP¥3.98 (up from JP¥3.32 in 2Q 2024). Revenue: JP¥1.01b (up 19% from 2Q 2024). Net income: JP¥66.0m (up 29% from 2Q 2024). Profit margin: 6.5% (up from 6.0% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 7.6% growth forecast for the Interactive Media and Services industry in Japan. Announcement • May 28
note inc. to Report Q2, 2025 Results on Jul 08, 2025 note inc. announced that they will report Q2, 2025 results on Jul 08, 2025 Announcement • Apr 23
note inc. (TSE:5243) agreed to acquire 9.30% stake in coconala Inc. (TSE:4176) from Akiyuki Minami. note inc. (TSE:5243) agreed to acquire 9.30% stake in coconala Inc. (TSE:4176) from Akiyuki Minami on April 22, 2025. New Risk • Apr 23
New minor risk - Financial data availability Less than 3 years of financial data is available. This is considered a minor risk. If the company has been trading for less than 3 years, then it has not had the opportunity to establish a long-term track record. This makes it difficult for investors to assess the true growth potential, sustainability and resilience of the business under different economic conditions. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (23% average weekly change). Minor Risk Less than 3 years of financial data is available. Buy Or Sell Opportunity • Apr 09
Now 25% undervalued Over the last 90 days, the stock has risen 200% to JP¥1,569. The fair value is estimated to be JP¥2,084, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to by 0 per annum. Earnings are also forecast to by 0 per annum over the same time period. Announcement • Feb 13
note inc. to Report Q1, 2025 Results on Apr 08, 2025 note inc. announced that they will report Q1, 2025 results on Apr 08, 2025 Announcement • Jan 30
note inc. announced that it has received ¥499.9736 million in funding from Google International LLC On January 29, 2025, note inc. closed the transaction. Price Target Changed • Jan 27
Price target increased by 63% to JP¥1,160 Up from JP¥710, the current price target is provided by 1 analyst. New target price is 6.6% above last closing price of JP¥1,088. Stock is up 80% over the past year. The company is forecast to post earnings per share of JP¥18.70 for next year compared to JP¥6.38 last year. Announcement • Jan 16
note inc. announced that it expects to receive ¥499.9736 million in funding from Google International LLC note inc. announced a private placement to issue 984,200 common shares at issue price of ¥508 per share for gross proceeds of ¥499,973,600 on January 14, 2025. The transaction includes participation from new investor, Google International LLC. The transaction will happen through third party allocation. The issue date will be January 29, 2025. The transaction has been approved at board of director meeting of the company. The company will bear issuance expenses of ¥10,000,000 and will receive net proceeds of ¥489,973,600. The estimated issuance expenses are the total amount of registration expenses, attorney's fees, investigation expenses for whether the intended allottee is a member of anti-social forces, etc. Reported Earnings • Jan 15
Full year 2024 earnings released: EPS: JP¥6.38 (vs JP¥27.44 loss in FY 2023) Full year 2024 results: EPS: JP¥6.38 (up from JP¥27.44 loss in FY 2023). Revenue: JP¥3.31b (up 19% from FY 2023). Net income: JP¥98.0m (up JP¥512.0m from FY 2023). Profit margin: 3.0% (up from net loss in FY 2023). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Interactive Media and Services industry in Japan. Announcement • Jan 14
note inc., Annual General Meeting, Feb 24, 2025 note inc., Annual General Meeting, Feb 24, 2025. Announcement • Nov 01
note inc. to Report Fiscal Year 2024 Results on Jan 14, 2025 note inc. announced that they will report fiscal year 2024 results on Jan 14, 2025 Announcement • Jul 27
note inc. to Report Q3, 2024 Results on Oct 09, 2024 note inc. announced that they will report Q3, 2024 results on Oct 09, 2024 Reported Earnings • Jul 12
Second quarter 2024 earnings released: EPS: JP¥1.17 (vs JP¥3.63 loss in 2Q 2023) Second quarter 2024 results: EPS: JP¥1.17 (up from JP¥3.63 loss in 2Q 2023). Revenue: JP¥812.0m (up 15% from 2Q 2023). Net income: JP¥18.0m (up JP¥73.0m from 2Q 2023). Profit margin: 2.2% (up from net loss in 2Q 2023). The move to profitability was driven by higher revenue. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 7.9% growth forecast for the Interactive Media and Services industry in Japan. New Risk • Jun 14
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.6% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (7.6% average weekly change). Minor Risk Market cap is less than US$100m (JP¥10.2b market cap, or US$65.3m). Announcement • Apr 29
note inc. to Report Q2, 2024 Results on Jul 10, 2024 note inc. announced that they will report Q2, 2024 results on Jul 10, 2024 Reported Earnings • Apr 11
First quarter 2024 earnings released: JP¥0.26 loss per share (vs JP¥15.94 loss in 1Q 2023) First quarter 2024 results: JP¥0.26 loss per share (improved from JP¥15.94 loss in 1Q 2023). Revenue: JP¥804.0m (up 37% from 1Q 2023). Net loss: JP¥4.00m (loss narrowed 98% from 1Q 2023). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Interactive Media and Services industry in Japan. Board Change • Mar 08
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 5 experienced directors. 1 highly experienced director. 3 independent directors (4 non-independent directors). Outside Independent Director Minako Takekawa was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Jan 30
note inc., Annual General Meeting, Feb 25, 2024 note inc., Annual General Meeting, Feb 25, 2024. Announcement • Jan 29
note Inc. Provides Earnings Guidance for the Full Fiscal Year Ending November 30, 2024 note inc. provided earnings guidance for the full fiscal year ending November 30, 2024. For the year, company expects Net sales of JPY 3,350 million, Operating loss of JPY 80 million, loss of 82 million and Basic loss per share of JPY 5.38. Announcement • Jan 28
note inc. to Report Q1, 2024 Results on Apr 10, 2024 note inc. announced that they will report Q1, 2024 results on Apr 10, 2024 Announcement • Nov 15
note inc. to Report Fiscal Year 2023 Results on Jan 11, 2024 note inc. announced that they will report fiscal year 2023 results on Jan 11, 2024 New Risk • Oct 18
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.4% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (8.4% average weekly change). Minor Risk Market cap is less than US$100m (JP¥7.10b market cap, or US$47.5m). New Risk • Sep 16
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended November 2022. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported November 2022 fiscal period end). Share price has been volatile over the past 3 months (5.4% average weekly change). Market cap is less than US$100m (JP¥7.13b market cap, or US$48.3m). New Risk • Aug 31
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended November 2022. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported November 2022 fiscal period end). Share price has been volatile over the past 3 months (5.6% average weekly change). Market cap is less than US$100m (JP¥7.71b market cap, or US$52.7m). Announcement • Jul 30
note inc. to Report Q3, 2023 Results on Oct 13, 2023 note inc. announced that they will report Q3, 2023 results on Oct 13, 2023 Board Change • Jul 19
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 1 highly experienced director. Independent Outside Director and Audit & Supervisory Committee Member Michiko Tanabe was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Jul 16
note Inc. Provides Earnings Guidance for the Year Ending November 30, 2023 note inc. provided earnings guidance for the year ending November 30, 2023. For the year ending November 30, 2023, the company expects sales in the range of JPY 2.85 billion to JPY 3.15 billion. Operating loss to be in the range of a loss of JPY 430 million to a loss of JPY 630 million. Announcement • Jan 29
note inc. to Report Q1, 2023 Results on Apr 14, 2023 note inc. announced that they will report Q1, 2023 results on Apr 14, 2023 Announcement • Jan 12
note inc. to Report Fiscal Year 2022 Results on Jan 16, 2023 note inc. announced that they will report fiscal year 2022 results on Jan 16, 2023 Announcement • Dec 23
note inc. has completed an IPO in the amount of ¥434.962 million. note inc. has completed an IPO in the amount of ¥434.962 million.
Security Name: Common Stock
Security Type: Common Stock
Securities Offered: 1,279,300
Price\Range: ¥340
Discount Per Security: ¥27.2
Transaction Features: Sponsor Backed Offering