Deep Negative ProfitabilityVery large negative net margins indicate the company is currently destroying economic value on sales; persistent unprofitability can deplete equity, force repeated capital raises and constrain reinvestment. Without a clear path to positive margins, long‑term viability is at risk.
Negative Operating Cash FlowNegative operating cash flow means core operations consume cash, making the business dependent on external funding to scale. Even with some free cash flow growth metrics, recurring negative OCF undermines the company’s ability to self-fund capex and commercial ramp, raising financing and execution risk.
Poor Returns On EquityA negative ROE signals inefficient use of shareholder capital and weak profitability relative to equity base. Structurally, improving ROE requires either meaningful margin recovery or much higher asset turnover; until then investor returns are unlikely and dilution risk from financing remains elevated.