Sustained UnprofitabilityPersistent net losses and margin deterioration undermine internal funding for content and tech investments, erode shareholder returns, and keep return metrics negative. Over months this limits strategic optionality and can force reliance on external financing for growth.
Weak Free Cash Flow TrendDeclining free cash flow growth, despite operating cash strength, constrains the company’s ability to sustainably fund high upfront costs like sports rights and original productions. This increases dependence on financing and compresses reinvestment capacity over time.
Negative ROE And Low Equity BufferNegative ROE signals profitability failure to generate shareholder returns, while a low equity ratio leaves limited balance-sheet cushioning against shocks. Together these structural weaknesses heighten vulnerability to market or content-cost shocks over the medium term.