Negative ProfitabilityTwo consecutive years of negative EBIT and net income indicate persistent operating issues. Continued losses erode equity, restrict reinvestment, and increase reliance on external capital. Without durable margin recovery, profitability weakness poses a multi‑quarter risk to solvency and strategic flexibility.
Weak Operating Cash FlowRepeated negative operating and free cash flow create structural liquidity pressure, forcing dependence on debt or equity raises. This limits ability to fund capex, meet supplier terms, and sustain operations without external financing, increasing vulnerability over the next several quarters.
Rising LeverageIncreasing debt relative to equity raises interest expense and refinancing risk. With weak profitability and cash generation, higher leverage can quickly constrain financial flexibility, raise borrowing costs, and amplify downside in a downturn, becoming a structural headwind in the medium term.