Negative Margins And Ongoing LossesPersistent negative gross and net margins reflect structural cost or pricing issues. Over months this erodes retained equity, undermines internal funding capacity, increases dependence on external capital, and makes achieving sustainable profitability a central, long-term operational challenge.
Persistently Negative Operating And Free Cash FlowOngoing negative operating and free cash flows create durable liquidity strain, forcing reliance on financing to cover working capital and capex. This elevates refinancing and execution risk, raises funding costs, and restricts the company's ability to invest in growth without dilution.
Highly Variable Revenue GrowthVolatile revenue growth reduces predictability of cash flows and planning. Coupled with weak margins, this instability complicates forecasting, raises execution risk for operational fixes, and increases the likelihood that additional capital will be needed before consistent recovery is achieved.