Persistent Operating Cash BurnConsistent negative operating and free cash flows mean Frontier must rely on financing, asset sales, or equity dilution to fund operations and portfolio support. Over months, continued cash burn raises refinancing and dilution risk and constrains the firm’s ability to invest evenly across its pipeline.
New Leverage Added In 2025The introduction of material debt after a period of no leverage increases fixed obligations and financial risk. With negative cash flows and uncertain near-term realizations, higher leverage reduces strategic flexibility and raises the chance of constrained funding for portfolio development.
Volatile, Negative ProfitabilitySubstantial year-to-year swings and a deeply negative net margin indicate inconsistent monetization and execution risk across portfolio companies. Negative ROE means the equity cushion isn’t translating into returns, undermining long-term capital preservation and investor confidence.