Persistent Negative Cash GenerationConsistent negative operating and free cash flow, including a ~-¥5.0B outflow in 2025, is a durable constraint on the business. It forces dependence on external financing or equity dilution, limits reinvestment capacity, and undermines long-term viability unless internally solved.
Revenue ContractionDeclining revenue reduces scale benefits and limits the firm's ability to cover fixed costs. A multi-year contraction weakens pricing leverage and market position, making margin recovery and sustainable profitability more difficult without structural demand or new revenue sources.
Margin Compression And Weakened Equity ReturnsSharp gross margin compression plus declining equity and persistently negative ROE indicate worsening unit economics and capital destruction. Over months this combination reduces investor optionality and signals that the core business is not generating adequate returns on invested capital.