Persistent Negative Operating Cash FlowSustained negative operating cash flow indicates the core business is not yet self-financing. Continued cash burn forces reliance on external capital, raises dilution or refinancing risk, and constrains investment in production scale or margin-improving initiatives over the medium term.
Deep, Persistent Losses And Weak MarginsVery negative net margins, despite improvement, point to structural profitability shortfalls. Large percentage losses indicate unit economics are not yet favorable; if margins remain deeply negative, the company may struggle to convert revenue growth into sustainable operating profits.
Ongoing Reliance On External FundingWith free cash flow still negative despite improvement, the company remains dependent on capital injections to fund operations and growth. This reliance increases execution risk: inability to secure future funding or dilution from raises could impede strategy and longer-term value creation.