Negative Operating & Free Cash FlowOperating cash flow swung negative (~-¥187M) and free cash flow to ~-¥207M in 2025, reversing prior improvement. Sustained negative cash generation forces reliance on debt or reserves, limits reinvestment, and raises solvency and liquidity risk absent a durable profit recovery.
Sharply Rising LeverageLeverage jumped materially as total debt more than doubled, reducing balance-sheet flexibility. Higher leverage increases interest and refinancing risk and magnifies downside if margins remain compressed or revenue momentum weakens, constraining long-term strategic options.
Margin Compression And Revenue DeclineNet margin collapsed from ~7.9% to ~0.4% and operating margin from ~8.7% to ~1.1% while revenue declined ~5.1%. Structural margin erosion signals weaker pricing power or rising costs, undermining sustainable profitability and return generation without operational restructuring.