Sustained UnprofitabilityPersistent negative net income and EBIT indicate structural profit issues, reducing internal funding for growth and making margin recovery a priority. Long-run unprofitability constrains reinvestment, increases external financing dependence and challenges long-term shareholder value creation.
Inconsistent Free Cash FlowVolatile and sometimes negative free cash flow weakens the firm's ability to consistently fund product development, marketing and regulatory costs. This variability limits capital allocation flexibility and raises the bar for sustainable expansion without outside financing.
Governance UncertaintyA major shareholder cutting voting rights introduces governance uncertainty that can delay strategic decisions or trigger shifts in leadership priorities. Over months, such uncertainty can hinder partnerships, capital raises, or decisive investments needed to stabilize operations.