Negative Net Income & EBITPersistent operating losses undermine equity value and limit the company's ability to fund growth organically. Continued negative EBIT means the firm is not covering operating costs, increasing reliance on financing and making long-term profitability contingent on sustained margin improvement.
Rising LeverageHigher leverage raises fixed interest obligations and reduces financial flexibility. Increased debt-to-equity constrains strategic options, heightens refinancing and solvency risk in stressed markets, and can force prioritization of debt service over growth investments in the coming months.
Negative Free Cash FlowNegative free cash flow means the company consumes cash after capital expenditures, necessitating external funding or asset sales to sustain operations. Over several quarters this pressures liquidity, may dilute shareholders if equity is issued, and limits ability to invest in strategic initiatives.