Negative Profitability And MarginsSustained negative net and EBIT margins indicate the business is not yet generating operating profits. This limits retained earnings for reinvestment, increases reliance on external capital to scale, and raises execution risk as the firm must convert revenue growth into positive operating leverage.
Weak Operating And Free Cash FlowsNegative operating and free cash flows point to cash burn from core operations, constraining the firm's ability to self-fund growth or absorb shocks. Even with low debt, poor cash generation forces reliance on equity or financing, which can dilute shareholders and limit strategic investments.
Low Gross Profit MarginA gross margin of ~14% is atypically low for software infrastructure, suggesting pricing pressure or high cost of delivery. Structurally low gross margins make it harder to scale profitably, restrict investments in R&D and sales, and increase sensitivity to revenue volatility.