The sharp revenue decline and cash burn raise liquidity concerns for this micro-cap real estate developer. Monitor upcoming quarters for further revenue deterioration, debt covenant compliance, and potential equity or debt financing needs.
Price Chart
Executive Summary
Lead Real Estate Co. reported a 20.7% YoY decline in total revenue to ¥3.99 billion for the six months ended December 31, 2025, though the net loss narrowed to ¥447 million from ¥604 million. Cash and cash equivalents dropped sharply to ¥1.03 billion from ¥2.66 billion, while real estate inventory and notes payable increased significantly, signaling potential liquidity strain.
Key Facts
- Total revenue decreased 20.7% YoY to ¥3,992 million (H1 FY2025) from ¥5,032 million (H1 FY2024).
- Net loss attributable to ordinary shareholders narrowed to ¥447 million from ¥604 million, but the company remains unprofitable.
- Cash and cash equivalents fell 61.3% to ¥1,028 million as of December 31, 2025, from ¥2,657 million as of June 30, 2025.
- Real estate inventory rose 54.1% to ¥15,615 million, and current portion of notes payable increased 54.6% to ¥11,750 million.
- Shareholders' equity declined to ¥4,458 million from ¥5,031 million, while total liabilities increased to ¥20,846 million.
Financial Impact
Revenue declined by ¥1.04 billion (20.7%) YoY; net loss improved by ¥157.5 million (26.1%) but cash position dropped by ¥1.63 billion (61.3%).
Risk Factors
- Continued revenue decline and inability to monetize real estate inventory.
- High leverage with notes payable exceeding shareholders' equity by 3.9x.
- Cash burn may force dilutive financing or asset sales.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001104659-26-075930 |
| Document: tm2617863d1_6k.htm | 0001104659-26-075930 |
| Document: 0001104659-26-075930-index-headers.html | 0001104659-26-075930 |
| Document: 0001104659-26-075930-index.html | 0001104659-26-075930 |
| Document: 0001104659-26-075930.txt | 0001104659-26-075930 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 7, 2026 20d ago | 6-K | $1.06 | awaiting T+60 | — | $1.08 (+1.88%) |
Sep 23, 2026 4w ago | 6-K | $1.11 | awaiting T+60 | — | $1.08 (−2.70%) |
Jun 18, 2026 18w ago | 6-K | $1.31 $1.24 | ▲ +5.34% | ▲ +7.09% | $1.08 (+17.56%) |
Mar 10, 2026 33w ago | Press Release | $1.34 $1.26 | ▼ −5.97% | ▼ −17.65% | $1.08 (−19.40%) |
US Market Status
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