Negative Cash GenerationPersistently negative operating and free cash flow means the business is not yet self-funding and requires external capital to sustain operations. Over months, continued cash burn can shorten runway, force dilutive financings, or constrain investment in go-to-market and product roadmaps, raising execution risk.
Ongoing Unprofitable OperationsA reported net loss margin of roughly -15% despite revenue gains shows the company has not converted scale into consistent profitability. If structural cost or monetization issues persist, extended losses will impede retained earnings, limit reinvestment capacity, and raise dependence on external funding.
Eroded Equity And Weak ReturnsDeclining book value and multi-year negative ROE signal that past losses have eroded the capital base, reducing the buffer against shocks. A weakened equity position can increase difficulty raising non-dilutive capital and amplifies downside for shareholders if revenue or margin recoveries stall.