Persistent Cash BurnSustained negative operating and free cash flow of about -¥654M in 2026 indicates persistent cash outflows that erode reserves. Over a 2–6 month horizon this increases reliance on existing equity or new financing, constraining strategic options and raising execution risk if losses continue.
Large Operating LossesAn EBIT margin near -49% shows the company is structurally unprofitable at the operating level, implying core cost or pricing issues. Without meaningful operational improvement, ongoing losses will undermine cash and capital, making sustained recovery difficult over the medium term.
Compressed Margins And Net DeteriorationSharp gross-margin compression to ~5% and an extreme net margin (~-252%) point to weak unit economics and possible large non‑operating charges. These structural margin issues reduce capital efficiency and hinder the company's ability to convert revenue gains into lasting profitability.