Declining Revenues & Negative MarginsFalling top-line and sustained negative margins indicate the core business is not yet profitable at scale. This reduces internal reinvestment capacity, undermines unit economics, and increases dependence on external funding unless revenue trends and margin conversion improve materially.
Negative Operating And Free Cash FlowPersistent negative operating and free cash flows constrain the company’s ability to invest in product, marketing, and tutor supply without raising capital. Continued cash burn raises liquidity and execution risk and limits strategic optionality over the medium term.
Very Poor Return On EquityAn extremely negative ROE signals that shareholder capital is being eroded rather than deployed profitably. This weakens investor confidence, makes equity raises dilutive, and reflects structural problems converting revenue into shareholder value absent clear corrective strategy.