Level-5 has lost so much money with the delay of Inazuma Eleven Ares from H1 2018 to Fall to Winter, and maybe even further. Running an anime without game and such.
And Youkai Watch 4 is missing the holiday season as well (good for Pokémon and Dragon Quest Builders 2).
They've had so many internal troubles in the last 3 years. Lots of delays of Fantasy Life Online, The Snack World, Inazuma Eleven Ares, Youkai Watch 4, and who knows what happened to Megaton Musashi. While other projects like Ni no Kuni II had smaller delays as well (missing the holiday season). And inbetween all those console games, they made a bunch of smartphone games that didn't do that hot as far as I can tell.
I doubt Level-5 is in financial troubles. But they definitely miss out on a lot of money with those excessive delays. Personally, from the outside, I'd say resources are their biggest problems. Shifting to full HD development instead making 3DS games. They're currently working on Inazuma Eleven, Youkai Watch 4, Megaton Musashi, and the 20th Anniversary Project that is supposed to be announced later this fall, and who knows what else. Yet on their company website, they state they only have 300 employees. I have no idea how old that information is, but I think it's best to scale up the company.
I think it's time for Hino to give more freedom/responsibility to other prominent people within the company, and let them manage their own projects. It's hard to be director of 4 projects at the same time. This approach would also make it easier to rapidly scale up projects, and hire people with a lot of mobile experience. Usually when a new Level-5 game comes out, it still sells well, so the creative direction doesn't seem to be a big problem yet, but development time and the availability of people to work on ongoing projects definitely is their weak spot.