Extremely High LeverageDebt-to-equity near 28x signals a highly leveraged, fragile balance sheet with minimal equity cushion. This materially increases refinancing, interest and solvency risk, reducing strategic flexibility and raising the chance that operating setbacks force debt restructuring or asset disposals over the medium term.
Deeply Negative Free Cash FlowA large negative free cash flow outflow drains liquidity and compels external financing or asset sales to meet obligations. Persistently negative FCF undermines the company’s ability to invest organically, service debt, and sustain operations without dilutive or costly capital, elevating medium-term solvency concerns.
Profitability Deterioration And Volatile RevenueRevenue volatility and a swing to deep losses indicate structural pressure on demand or cost control. A roughly -34% net margin erodes equity and makes forecasting enrollment, pricing, and margins harder. Continued variability undermines the tuition-based model's predictability and long-term financial stability.