Traders knocked note back over the past week, with the stock down about 12%, even though the latest report showed revenue holding at ¥1,454 million and quarterly earnings per share at ¥17.22. The tension comes from valuation, not just the headline numbers. This is an interactive media business on a 50x P/E, far richer than its local peer group. The market is wrestling with how much future growth is already baked into ¥3,150 a share.

Like the note story but uneasy about paying 50x earnings for it? Consider our 14 high quality undervalued stocks for ideas that balance quality with more grounded valuations.

Q3 2026 Earnings Summary

• Revenue (Q3 2026 vs. Q3 2025): ¥1,454 million vs. ¥1,075.697 million (up roughly 35%)
• Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): ¥334 million vs. ¥141.644 million (up well over 100%)
• Basic EPS (Q3 2026 vs. Q3 2025): ¥17.22 per share vs. ¥8.52 per share (up more than 100%)
• Trailing 12-Month Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): ¥1,221.425 million vs. ¥262.72 million (very large increase, more than 4x)

Prefer clean charts over scrolling through line after line of raw results and ratios? See note's full financial picture with a visual view of its valuation through our company report for note..

note Bull Case Meets Strong Operating Momentum

For anyone leaning positive on note inc., the latest quarter gives the story some real numbers. Revenue sits at ¥1,454 million, well ahead of the prior ¥1,075.697 million level, which fits a creator platform that is finding more ways to get paid. Profitability moves in the same direction. Quarterly EPS is ¥17.22 compared with ¥8.52, and trailing 12-month net income has scaled to ¥1,221.425 million from ¥262.72 million, suggesting the model can throw off earnings as it grows.

note Bear Case Faces Mixed Near Term Signals

Bears focus on competition and monetisation risk, and the recent trading pattern gives them some support. The share price has fallen about 12% over the past week even after these results, which shows how quickly sentiment can cool. At the same time, the 90-day return is up roughly 57%, so recent selling follows a strong run. Profit metrics such as net income excluding extra items rising from ¥141.644 million to ¥334 million imply that, for now, the core business is not weakening on the income statement.

After a 57% 90 day climb and a 12% weekly pullback, price volatility and past dilution both raise a simple question. Review our independent risk analysis for note which shows 2 important warning signs

Stay Ahead Of Your Next Move

With note showing a sharp 57% 90 day climb followed by a 12% weekly pullback, register free with Simply Wall St and add it to your Watchlist to track price against fair value and keep an eye out for a better entry point. After you own it, use the Portfolio Command Center to cut through short term noise and focus on the updates that matter to your holdings. For longer term decisions, tap into crowd insights through the Community and see how other investors are reacting to new information. By surfacing potential catalysts and risks early, you give yourself a better chance of staying ahead of the market rather than reacting to it late.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.