Negative Net ProfitabilityA sustained negative net margin erodes retained earnings and ROE, limiting the company’s ability to self-fund growth or cushion adverse cycles. Until margins turn positive, the business will likely need external capital or restructuring to support long-term investments and restore shareholder returns.
Persistent Negative Free Cash FlowOngoing negative free cash flow means the company does not yet generate surplus cash to invest or reduce debt. This structural cash deficit raises refinancing risk, may force equity issuance or higher borrowing, and constrains strategic initiatives despite recent improvements.
Volatile Revenue And Margin HistoryHistoric volatility in sales and margins undermines forecasting accuracy and operational planning. Structural unpredictability hampers long-term contracts, supplier negotiations, and capacity planning, making sustained margin recovery and strategic investment harder to achieve without stabilizing revenue streams.