Persistent Negative Free Cash FlowConsistent negative operating and free cash flow (~-¥654M) indicates structural cash burn. Over months this exhausts liquidity, forces reliance on financing or equity raises, and constrains investment in products or cost restructuring needed to restore durable profitability.
Large Operating LossesAn EBIT margin near -49% shows the core business is currently unprofitable at scale. Persistent operating losses reflect deeper issues with cost structure or business mix that must be corrected to achieve sustainable margins and avoid gradual erosion of the strengthened equity base.
Severely Compressed Gross And Net MarginsVery low gross margin and extreme negative net margin point to weak pricing power, rising costs, or large non-operating hits. Such margin erosion undermines the company’s ability to convert revenue into durable profits and makes recovery dependent on structural margin improvement.