Annual Report Reveals 91% Net Income Drop, Material Internal Control Weaknesses, and Auditor Change
RYOJ sits 27% above its 52-week low of $1.813 on light trading volume (0.1× avg).
Summary
rYojbaba Co., Ltd. reported a 91% drop in net income and 97% decline in EBITDA for fiscal year 2025, alongside disclosing material weaknesses in internal controls and an auditor change, signaling significant operational and governance challenges.
Key Events · Corporate Governance and Compliance · RYOJ
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Dramatic Profitability Decline
Net income decreased by 91% to $119,394 in 2025 from $1,332,399 in 2024. EBITDA also saw a sharp 97% decline to $64,096 from $2,489,996 in the prior year.
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Material Weaknesses in Internal Controls
Management identified two material weaknesses as of December 31, 2025: a lack of established procedures for related party transactions and insufficient financial reporting and accounting personnel to operate key controls.
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Auditor Change
The company terminated its engagement with TAAD LLP on September 3, 2025, and appointed GuzmanGray as its new independent registered public accounting firm on September 4, 2025. No disagreements with the former auditor were reported.
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Revenue Contraction Across Segments
Total revenue decreased by 19% to $9.34 million in 2025 from $11.58 million in 2024, driven by a 50% drop in consulting services revenue and an 8% decline in health services revenue, with osteopathic beauty salons revenue falling 53%.
Analysis · RYOJ · Trade & Services
rYojbaba Co., Ltd.'s annual report for fiscal year 2025 highlights a severe deterioration in financial performance, with net income plummeting by 91% and EBITDA by 97%. This significant decline is compounded by the disclosure of material weaknesses in internal controls over financial reporting, raising serious concerns about the reliability of the company's financial statements and overall governance. The company also changed its auditor during the year. While the August 2025 IPO provided a cash infusion, the subsequent operational results and governance issues present substantial risks for investors.
At the time of this filing, RYOJ was trading at $2.30 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $25.9M. The 52-week trading range was $1.81 to $11.43. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.