Multi-year Cash BurnSustained negative operating and free cash flow for multiple years implies ongoing funding needs, constrains reinvestment in development and marketing, and raises the probability of equity issuance or higher borrowing if product monetization does not recover, impairing long-term growth.
Fragile ProfitabilityEarnings instability—deep losses for several years and only marginal net profit in 2026—reduces visibility into returns, undermines the company’s ability to reliably fund operations from earnings, and signals margins are vulnerable to title performance and cost structure misalignment.
Revenue Concentration & VolatilityHeavy reliance on in-game purchase dynamics and hit-driven titles produces lumpy, volatile revenue; this business concentration amplifies risk from title underperformance, changing player spend patterns, or regulatory scrutiny of gacha mechanics, making revenue recovery uncertain.