Revenue CollapseZero reported revenue over the last two annual periods is a fundamental red flag: it indicates the core commercial model is stalled or inactive. Without restoring recurring revenue, the company lacks a sustainable income base to cover costs, invest in growth, or convert improved burn into profitability.
Persistent Negative Free Cash FlowOngoing negative free cash flow erodes equity and forces reliance on external financing or dilution. Even with improvement, persistent outflows constrain capital allocation, limit ability to scale products, and increase execution risk unless reversed by sustainable revenue or structural cost changes.
Sustained Net Losses And Weak ProfitabilityRecurrent net losses depress returns on equity and reduce retained capital available for reinvestment. Continued unprofitability undermines shareholder value, raises the probability of future capital raises, and limits ability to attract/retain talent and partners critical to long-term recovery.