Negative Equity / Solvency RiskNegative stockholders' equity is a material solvency concern that limits financial flexibility. It raises the likelihood of higher funding costs or equity dilution, constrains investment in R&D and capacity expansion, and can impair long-term competitiveness if not remedied through sustained profitability or recapitalization.
Negative Operating And Free Cash FlowPersistent negative operating and free cash flow indicate structural cash-generation problems. Without positive OCF, the company must rely on external financing for operations and capex, increasing execution risk and potentially limiting the ability to sustain service delivery, invest in equipment, or hire technical staff.
Declining Revenue And Ongoing LossesA drop in revenue alongside negative EBIT and net margins suggests the business isn't scaling fixed-cost operations effectively. Continued top-line decline and losses erode runway, weaken negotiating power with clients, and reduce resources for R&D and commercialization, posing sustained operational risk.