Weak Cash GenerationZero reported operating cash flow and persistent negative free cash flow indicate the business burns cash rather than self‑funding growth. Over months, this necessitates external capital (equity or debt) to fund operations, increasing dilution or leverage risk and constraining long-term investment capacity.
Persistent UnprofitabilityDeep, recurring net losses and negative operating margins reflect structural issues converting revenue into profit. Without a clear, sustained margin improvement plan, losses can continue to erode reserves and prevent reinvestment, undermining long-term viability and shareholder returns.
Erosion Of Equity Base And ReturnsDeclining equity and strongly negative ROE signal capital erosion from ongoing losses. Over several quarters this raises the probability of further dilution or constrained strategic options, as management may need to raise fresh capital or accept unfavorable financing to sustain operations.