Persistent Negative Cash FlowChronic negative operating and free cash flow, including a ~-¥5.0B outflow in 2025, undermines internal funding capacity. Continued cash deficits erode reserves, force reliance on external financing, restrict capital allocation, and raise the risk of operational scaling constraints over the medium term.
Sustained Losses And Margin PressureRecurring operating and net losses alongside sharp gross-margin compression signal weakening unit economics. Persistent negative margins impair equity building, limit reinvestment, and make profitable scale difficult without structural cost or pricing changes, risking long-term competitive viability.
Revenue Decline And Eroding EquityA contracting top line in 2025 combined with declining equity from 2022–2025 reflects weakening franchise strength and capital erosion. Lower revenues and diminished equity reduce resilience to shocks, constrain investment capacity, and heighten the challenge of restoring sustainable profitability.