Persistent Negative Cash FlowSustained negative operating and free cash flow forces reliance on external financing or asset sales, constraining strategic flexibility. Large 2025 burn elevates refinancing and dilution risk, making long-term investment and growth plans contingent on securing funding.
Multi-year Losses And Compressed MarginsExtended operating losses and shrinking margins indicate weak unit economics or competitive pressure, reducing the firm's ability to self-fund growth. Without durable margin expansion, scale will not translate to profitability and structural fixes will be required to sustain the business.
Balance-sheet Stability RiskVolatile equity levels undermine predictability in capital-raising and erode creditor and investor confidence. This instability can raise the cost of capital, increase likelihood of dilutive financings, and complicate long-term planning absent steadier earnings or cash flow.