0001493152-26-012158
SEC filingrYojbaba Co., Ltd. (RYOJ) reported FY2025 revenue of $9.3M, down 19% YoY from $11.6M in FY2024, driven by declines in both consulting services (17% of revenue, $1.56M, -50% YoY) and health services (83% of revenue, $7.78M, -8% YoY). Gross profit fell to $2.5M from $4.5M, reflecting higher costs amid operating challenges. Operating loss widened to -$0.8M from $1.9M profit, with total operating expenses rising 25% to $3.2M due to increased general and administrative costs. Net income dropped 91% to $0.1M, supported by a $0.6M tax benefit and $0.3M other income. Balance sheet strengthened with cash at $6.2M (up from $2.6M), total assets $16.9M, and equity $6.1M. Operating cash flow improved to $0.9M. FY2025 marked post-IPO transition (August 2025, $4.4M net proceeds), with strategic focus on clinic expansion and IT platform development amid Japan labor consulting and osteopathic services markets.
rYojbaba reported FY2025 revenue of $9.3M, a 19% YoY decline from $11.6M in FY2024, primarily due to a 50% drop in consulting services to $1.56M and an 8% decrease in health services to $7.78M. Gross profit contracted 44% to $2.5M, with gross margin slipping to 26.7% from 38.5%. Operating loss expanded to -$0.8M from a $1.9M profit, driven by 25% higher operating expenses at $3.2M, mainly G&A increases. Net income fell 91% to $0.1M, offset by a $0.6M tax benefit and $0.3M other income. Balance sheet improved post-IPO, with cash rising to $6.2M and equity to $6.1M on $16.9M assets. Operating cash flow edged up to $0.9M.
Revenue breakdown: consulting $1.56M (17%, -50% YoY), health services $7.78M (83%, -8% YoY). Within health, osteopathic clinics contributed $7.49M (-4% YoY), salons $0.29M (-53% YoY). Declines attributed to contract terminations in consulting and salon closures. All revenue generated in Japan, with no geographic diversification disclosed.
Gross margin declined to 26.7% from 38.5%, reflecting higher cost of revenue ($6.8M, -4% YoY). Operating margin turned negative at -8.1% from 16.1%, with payroll steady at $0.9M but G&A surging 39% to $2.3M. Payroll $865K, rent/lease $65K. Impairment loss $365K on customer lists impacted profitability.
Operating cash flow $864K (up from $802K), driven by AR collection $1.9M offset by AP decline $1.1M. Investing outflow $175K (PPE purchases). Financing inflow $3.1M (IPO $4.4M net, offset by debt repayments $1.3M). Ending cash $6.2M. Debt $3.5M (down from $4.1M), leases $4.9M. Current ratio strong at 2.7x.
Post-IPO focus on clinic expansion (29 clinics), IT platform for consulting, and overseas growth. Risks include Japan economic conditions, competition in osteopathic market, and debt covenants. Management targets profitability restoration in salons and consulting synergies.