Sharp Revenue DeclineA roughly 28% revenue decline in 2025, following prior drops, is a structural concern: persistent top-line erosion reduces scale, undermines fixed-cost coverage and pricing leverage, and impairs the firm's ability to fund trials or commercialization without consistent recovery or new revenue streams.
Negative Operating And Free Cash FlowSustained negative operating and free cash flow through 2023–2025 creates ongoing financing needs. Reliance on external capital elevates dilution or debt risk, constrains discretionary R&D and commercialization investments, and heightens liquidity risk if negative cash generation persists over the medium term.
Rising Leverage And Compressed EquityDebt increased to about ¥2.0B in 2025 from near-zero prior years, pushing debt above equity. Higher leverage reduces financial flexibility, increases interest and covenant risk, and limits capacity to fund licenses or acquisitions without raising capital, a lasting constraint until balance sheet repair occurs.