High Gross MarginAn ~88% gross margin signals very high direct profitability per unit of revenue. Structurally, that supports scalable unit economics: incremental sales largely drop to cover fixed SG&A and R&D, enabling operating leverage if the business can stabilize revenue and control operating costs.
Debt-free Balance SheetA debt-free capital structure reduces refinancing and interest risks, preserving flexibility. For a cash-burning software firm, having no debt gives management time to pursue restructuring, capital raises, or strategic investments without covenant pressure or urgent repayment obligations.
Recurring Licensing ModelA licensing/subscription model creates recurring revenue and customer stickiness, improving predictability and lifetime value. In healthcare, enterprise contracts can be durable, supporting margin expansion over time if the company arrests churn and scales sales to regain growth.