Negative Profitability MetricsDespite margin and EBITDA improvements, persistent net losses and negative ROE indicate the company still fails to generate returns on equity. Over time this limits retained earnings, constrains capital available for growth, and raises pressure to either improve margins further or seek external funding.
High Leverage And Weak Cash GrowthMaterial leverage and deteriorating cash flow growth reduce financial resilience. High debt amplifies refinancing and covenant risk, which can force defensive actions (discounting, reduced inventory investment) that impair long-term growth unless cash generation sustainably improves.
U.S. Revenue Decline And Channel Transition RiskA deliberate purchasing pause and channel model shift led to a sharp U.S. sales drop, exposing concentration and execution risk outside ANZ. Ongoing tariff uncertainty and partner transitions can constrain durable international scaling and delay the recovery in a strategically important market.