Consistent Net LossesOngoing net losses and a negative return on equity show the company has not reached sustainable profitability. Persistent losses erode reserves and limit retained earnings, constraining reinvestment capacity and increasing reliance on external financing, which undermines long‑term stability.
Weak Operational Cash FlowNegative operating and free cash flow indicate the business cannot self‑fund working capital or capex needs. Over a multi‑month horizon this raises refinancing risk, forces dependence on debt or equity raises, and limits ability to invest in growth or margin improvement initiatives.
Notable Debt BurdenA material level of debt combined with weak profitability increases leverage and interest obligations. Elevated leverage reduces financial flexibility, heightens default risk if cash flows remain weak, and may compel deleveraging or asset sales that impair strategic execution over time.