Persistent LossesOngoing negative net and EBIT margins indicate the company has not yet converted revenue into sustainable profitability. Over the medium term, continued operating losses erode cash reserves, limit reinvestment ability, and force reliance on external funding unless margins improve through scale or cost control.
Negative Operating Cash FlowConsistent negative operating and free cash flow shows core operations are not self-financing, requiring external financing to fund growth. Dependence on financing raises dilution and liquidity risk and constrains resilience if capital markets tighten or fundraising terms worsen.
Moderate LeverageA moderate debt-to-equity ratio increases fixed obligations and financial risk, especially given negative cash flows and losses. Leverage can limit strategic flexibility, increase interest burden, and amplify vulnerability to adverse operational or funding shocks absent sustained profit improvement.