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Earlyworks Co., Ltd

ELWS

Earlyworks Co., Ltd • NASDAQ
$5.66 ▲ 10.76% (+0.55)
Market Cap $17.07 M
52w High $10.50
52w Low $1.64
Dividend Yield 0%
P/E -10.48
Volume 12.93K
Outstanding Shares 3.02M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q4-2024 $128.887M ▲ $415.708M ▲ $-280.912M ▼ -217.953% ▲ $-53.85 ▲ $-156.08M ▲
Q2-2024 $57.416M ▲ $286.063M ▲ $-193.276M ▼ -336.622% ▲ $-66.13 ▼ $-191.032M ▼
Q4-2023 $14.484M ▼ $181.812M ▼ $-170.387M ▲ -1.176K% ▼ $-55.45 ▲ $-177.418M ▲
Q2-2023 $34.28M $238.645M $-227.085M -662.441% $-75.05 $-225.78M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q4-2025 $104.379M ▼ $190.501M ▼ $116.473M ▼ $74.028M ▼
Q2-2025 $212.493M ▼ $380.154M ▼ $159.595M ▼ $220.559M ▼
Q4-2024 $437.911M ▼ $575.566M ▼ $244.841M ▼ $330.725M ▼
Q2-2024 $701.385M ▲ $770.316M ▲ $290.271M ▲ $480.045M ▲
Q4-2023 $177.886M $453.035M $244.52M $208.515M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q4-2024 $-156.636M ▲ $-233.256M ▼ $-103.698M ▼ $-31.683M ▼ $-372.492M ▼ $-233.356M ▼
Q2-2024 $-193.276M ▼ $-170.725M ▲ $-242.674K ▲ $683.506M ▲ $493.42M ▲ $-170.968M ▲
Q4-2023 $-170.387M ▲ $-194.346M ▲ $-1.018M ▼ $-101.623M ▼ $-250.646M ▼ $-195.364M ▲
Q2-2023 $-227.085M $-227.155M $-678.35K $24.534M $-203.299M $-227.833M

Five-Year Company Overview

Income Statement

Income Statement Earlyworks is still in a very early, build-out stage. Sales are small but have grown meaningfully over the last couple of years, and the company is consistently generating a positive gross margin, which suggests the core services can be profitable at scale. However, operating costs – mainly development, staff, and public-company expenses – are much higher than its current revenue base. As a result, the company has reported losses every year, and those losses are still sizable, even though they have narrowed somewhat from their peak. In simple terms: the business is moving in the right direction on sales, but it is far from covering its cost structure and remains firmly loss-making.

Balance Sheet

Balance Sheet The balance sheet is very light, reflecting a small, young software company. Cash has moved up and down but has recently declined, showing that the company is using its funds to cover ongoing losses. Debt exists but is modest relative to total assets, and shareholder equity is still positive, though it has shrunk as losses accumulate. Overall, Earlyworks does not appear over-leveraged, but it also does not have a deep financial cushion; its ability to keep investing depends heavily on raising or preserving cash.

Cash Flow

Cash Flow Cash flow tells a clear story of an early-stage tech firm: the business is not generating cash from its operations and is instead consuming it. Operating cash flow has been negative in recent years, and free cash flow is also negative, with almost all of the outflow coming from day-to-day business rather than from heavy investment in physical assets. This means the company must rely on external funding or equity raises to sustain its activities and growth plans until it can reach a scale where operations pay for themselves.

Competitive Edge

Competitive Edge Earlyworks sits in a niche area of enterprise blockchain, centered on its proprietary Grid Ledger System. Its strengths include a technically differentiated platform designed for speed, security, and ease of use without relying on cryptocurrencies, plus a set of early partnerships with well-known Japanese corporates. These relationships, together with locally focused expertise, give it some early first-mover advantages in specific use cases. On the other hand, it operates in a fiercely competitive and fast-changing space, with many larger global players and open-source alternatives. Its very small scale, limited financial resources, and ongoing Nasdaq listing compliance issues all weaken its competitive position and put pressure on execution.

Innovation and R&D

Innovation and R&D Innovation is clearly the core of the company. The Grid Ledger System, its software development kit, and applied projects in real estate contracts and NFTs illustrate a push to turn advanced blockchain concepts into usable business tools. The platform’s design choices – high speed, no need for tokens, enhanced security – are targeted directly at common barriers to blockchain adoption. Continued enhancements to the SDK, joint research with technology partners, and exploration of new applications show an active R&D agenda. The main question is not whether the technology is interesting, but whether the company can convert that innovation into broad, recurring commercial usage before its financial resources tighten further.

Summary

Earlyworks is a very early-stage, innovation-led blockchain software company with promising technology and partnerships but a fragile financial profile. Revenue is growing from a low base and the underlying services appear to have healthy gross margins, yet the company is still far from profitability and continues to burn cash. Its proprietary platform and strategic alliances in Japan support a differentiated story in enterprise blockchain, particularly for secure, high-speed, non-crypto use cases. At the same time, its small scale, persistent losses, reliance on external funding, and pressure to maintain Nasdaq compliance all introduce meaningful risk and uncertainty. The company’s long-term outcome will largely be determined by its ability to scale GLS adoption, deepen commercial relationships, and manage its cash position until the business model matures.

NEWS

September 23, 2025 · 4:10 PM UTC

Earlyworks Co., Ltd. Receives Final Extension from Nasdaq Hearings Panel to Regain Compliance with Continued Listing Standards

Read more