Multi-year Profitability DeteriorationA swing from strong 2022 profits to sustained losses undermines retained earnings and long-term self-funding. Persistent negative margins limit reinvestment, increase reliance on external capital, and raise the bar for management to demonstrate durable cost or pricing fixes to restore profitability.
Rising Leverage In 2025A sharp increase in leverage materially reduces financial flexibility and increases default and refinancing risk, especially given negative earnings. Higher debt amplifies downside if cash flows remain weak and constrains strategic options like R&D, capex, or M&A over the medium term.
Persistent Negative Cash FlowConsistent negative operating and free cash flow indicates the business is not self-funding and needs external financing. Ongoing cash burn raises liquidity and dilution risk, forcing prioritization of short-term financing over long-term investments and increasing survival risk if capital markets tighten.