Voltage Incorporation (3639) AI Stock Analysis

Voltage Incorporation

(TSE/TYO:3639)

Select Model

Rating:37Underperform

Price Target:JPY 219.00▼(-6.41% Downside)

Action:downgraded

Date:10/29/26

The score is driven primarily by severe fundamental deterioration: five consecutive years of revenue decline totalling about two-thirds of the business, shrinking gross margins, projected FY2026 losses and negative free cash flow. A debt-light balance sheet with ~¥2.2B of equity provides some downside protection and buys time, but it is being eroded by ongoing cash burn. Valuation provides no cushion given negative earnings and no dividend. Technicals are the least negative input, with the price recently reclaiming its shorter-term moving averages, though it still trades below the 200-day average. Overall this is a high-risk situation where a turnaround in the product pipeline would be needed to change the trajectory.

Positive Factors

Low LeverageA modest debt burden gives Voltage greater flexibility to manage earnings volatility, fund essential operations, and adjust spending without heavy financing pressure. Low leverage also reduces the risk that interest obligations will restrict strategic choices during a prolonged period of weaker revenue.

Negative Factors

Persistent Revenue ContractionA multi-year revenue decline indicates sustained pressure on demand, monetization, or customer engagement rather than a single-period setback. Continued contraction reduces operating scale, weakens reinvestment capacity, and makes it harder for the company to spread fixed costs across its business.

Voltage Incorporation (3639) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 1.54B
Dividend Yield: ―
Average Volume (3M): 13.03K
Price to Earnings (P/E): -19.1
Beta (1Y): 0.30
Revenue Growth: -16.03%
EPS Growth: -701.11%
Country: Japan
Employees: 132
Sector: Communication Services
Sector Strength: 60
Industry: Electronic Gaming & Multimedia

Voltage Incorporation Business Overview & Revenue Model

Company Description

Voltage Incorporation focuses on the comprehensive lifecycle management of mobile entertainment, spanning everything from initial concept and design to development, production, and ongoing operation, catering to both the Japanese market and an intern...

Voltage Incorporation Financial Statement Overview

Summary

Fundamentals are weak across the board. Revenue has fallen roughly 66% over five years (¥6.9B in FY2021 to a projected ¥2.4B in FY2026), gross margins have compressed from ~66% to ~47%, and the company is projected to post a net loss of ¥80.7M with negative EBITDA in FY2026 (Income Statement score 15). Cash flow is erratic and largely negative, with projected FY2026 free cash flow of -¥119M and poor earnings quality (Cash Flow score 18). The balance sheet is the one offset, with ~¥2.2B of equity and a very low debt-to-equity ratio of 4–5% (score 58), but the asset base is shrinking and returns on equity are negative, meaning the cushion is gradually being consumed.

Income Statement

15Very Negative

Balance Sheet

58Neutral

Cash Flow

18Very Negative

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	2.37B	2.37B	2.82B	3.46B	4.26B	5.39B
Gross Profit	1.10B	1.10B	1.48B	1.83B	2.44B	3.15B
EBITDA	-118.76M	-127.92M	68.87M	51.38M	2.67M	-363.10M
Net Income	-80.69M	-80.69M	13.31M	5.27M	-39.15M	-412.17M
Balance Sheet
Total Assets	2.83B	2.83B	2.79B	2.84B	2.96B	3.06B
Cash, Cash Equivalents and Short-Term Investments	676.46M	676.46M	1.33B	1.38B	1.45B	1.47B
Total Debt	97.69M	97.69M	101.69M	105.68M	139.68M	143.67M
Total Liabilities	577.25M	577.25M	598.08M	665.14M	793.11M	870.26M
Stockholders Equity	2.25B	2.25B	2.20B	2.18B	2.16B	2.19B
Cash Flow
Free Cash Flow	0	-118.93M	20.64M	0	71.03M	-181.03M
Operating Cash Flow	0	-105.81M	41.56M	0	112.03M	-125.49M
Investing Cash Flow	0	-596.65M	-1.83M	-79.00M	-139.06M	-204.50M
Financing Cash Flow	0	46.94M	-4.02M	-34.00M	-4.03M	-55.10M

Voltage Incorporation Technical Analysis

Technical Analysis SentimentPositive

Last Price234.00

Price Trends

50DMA227.34Positive

100DMA225.41Positive

200DMA237.32Negative

Market Momentum

MACD0.40Negative

RSI63.08Neutral

STOCH89.71Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3639, the sentiment is Positive. The current price of 234.00 is above the 20-day moving average (MA) of 221.40, above the 50-day MA of 227.34, and below the 200-day MA of 237.32, indicating a neutral trend. The MACD of 0.40 indicates Negative momentum. The RSI at 63.08 is Neutral, neither overbought nor oversold. The STOCH value of 89.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3639.

Voltage Incorporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

JP:3639 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3911	70Outperform	JPY 10.09B	8.43	―	―	-20.04%	-54.97%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
JP:3928	50Neutral	JPY 2.15B	-20.48	―	―	-6.91%	-173.90%
JP:3903	49Neutral	JPY 9.59B	-5.66	―	―	26.98%	-143.29%
JP:3656	45Neutral	JPY 12.64B	15.26	―	―	10.54%	―
JP:4175	43Neutral	JPY 15.84B	-20.30	―	―	-1.75%	-617.20%
JP:3639	37Underperform	JPY 1.54B	-19.10	―	―	-16.03%	-701.11%

* Communication Services Sector Average

Performance Comparison

JP:3639 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3639	Voltage Incorporation	237.00	-38.00	-13.82%
JP:3656	KLab Inc.	152.00	-57.00	-27.27%
JP:3903	gumi, Inc.	178.00	-261.00	-59.45%
JP:3911	Aiming, Inc.	216.00	-3.00	-1.37%
JP:3928	Mynet, Inc.	228.00	3.00	1.33%
JP:4175	coly Inc.	2879.00	841.00	41.27%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 29, 2026

Voltage Incorporation AI Stock Analysis