Negative Cash FlowPersistent negative operating and free cash flows mean the business consumes cash to operate and requires external financing or equity to sustain itself. Over months this limits the ability to self-fund growth, increases financing risk, and constrains strategic investment flexibility.
Ongoing Operating LossesDeep negative EBIT/EBITDA margins indicate the current cost base is not supported by revenue. Persistent unprofitability erodes shareholder equity, limits reinvestment capacity, and forces management to prioritize cash preservation or additional funding over long-term strategic initiatives.
Revenue VolatilityA volatile multi-year revenue pattern undermines predictability of cash flows and margin recovery. Structural instability in revenue streams complicates planning, weakens bargaining with partners, and raises execution risk for converting a rebound into sustained, repeatable growth over the next several months.