Persistent Net LossesOngoing net losses mean the company has not yet demonstrated sustainable profitability despite healthy gross margins and improving cash flow. Persistent negative earnings limit retained capital for growth, depress returns on equity, complicate capital raises, and increase dependence on external financing for major investments.
Revenue Decline In 2025A near-term reversal to negative revenue growth signals potential demand weakness or competitive pressure that could erode operating leverage. If top-line contraction persists, the company may struggle to translate high gross margins into scalable profitability, limiting sustainable margin expansion and cash flow upside.
High Absolute Debt BurdenEven with improved ratios, a ~¥1.91B absolute debt load increases interest and refinancing exposure, especially while profitability remains negative. High nominal debt constrains strategic options, elevates downside risk if cash generation weakens, and can slow investment or M&A activity until earnings stabilize.