Negative Operating & Free Cash FlowPersistent negative operating and free cash flows constrain the company's ability to fund day-to-day farm operations, pay suppliers, and invest in growth. For aquaculture this raises refinancing and liquidity risk and limits capacity to scale production reliably over months.
Inconsistent And Declining RevenueRevenue variability and recent declines reduce predictability of harvest planning and fixed-cost absorption. Over a multi-month horizon this can pressure margins, complicate supply contracts, and hinder the company's ability to invest steadily in broodstock, facilities, or market expansion.
Low Net ProfitabilityLow net margins limit retained earnings and the firm's capacity to self-fund capital needs or weather production shortfalls. Even with gross margin gains, compressed net profitability reduces long-term resilience and slows deleveraging, hampering strategic investments in the business.