Ongoing LossesDespite strong revenue and gross margin gains, persistent negative EBIT and net margins mean the company remains loss-making. Structural profitability risks remain until operating costs scale more slowly than revenue or underlying margins expand further, limiting self-funded growth and increasing capital dependence.
Negative Operating Cash FlowContinued negative operating cash flow signals that core operations still consume cash despite revenue growth. Over months this weakens liquidity and forces reliance on external funding or asset sales, which can dilute shareholders or constrain investment in R&D, production capacity, and sales expansion.
Rising LeverageAn elevated D/E near 0.9 reflects materially higher leverage versus prior periods, raising financial risk. Higher debt servicing needs reduce flexibility for cyclical shocks, increase refinancing risk, and can limit capital allocation to growth initiatives, particularly if profitability and operating cash flow remain weak.