Negative ProfitabilityPersistent negative EBIT and net margins (-14.71%) show the company still struggles to translate strong gross profits into operating profitability. Structural cost items or scaling expenses could continue to depress earnings, limiting retained earnings, and making achievement of sustainable net profitability over the next several quarters uncertain.
Negative Return On EquityA negative ROE (-3.54%) implies current capital is not generating shareholder returns, reflecting operating losses or inefficient capital deployment. Over time, sustained negative ROE can deter investor support and constrain capital availability for expansion, forcing management to prioritize profitability fixes over growth initiatives.
Limited Cash CushionA FCF to net income ratio near 0.98 means cash generation barely exceeds accounting earnings, leaving little extra cushion for volatility. This tight conversion reduces flexibility to absorb working capital swings, invest aggressively, or weather revenue shocks, increasing operational risk until profit margins and cash buffers improve.