Persistent Negative MarginsNegative margins at gross, EBIT, EBITDA and net levels reflect structural operational inefficiencies or high unit costs. Without durable margin improvement, the business cannot sustainably translate revenue into profits, risking prolonged losses and the need for repeated capital raises that dilute shareholders.
Negative Operating Cash FlowPersistent negative operating cash flow shows core operations are not yet self-funding. Even with improved free cash flow metrics, ongoing negative OCF forces reliance on financing or asset sales, constraining reinvestment and posing a multi-month liquidity risk if cash burn continues.
Consistently Negative Return On EquitySustained negative ROE indicates the company is not generating returns on shareholder capital. This structural weakness hampers the ability to attract long-term equity on favorable terms and signals potential long-term value destruction absent a credible path to profitability.