Persistent UnprofitabilityContinued negative operating and net margins signal the company has not yet translated revenue recovery into sustainable profitability. This limits reinvestment capacity, prolongs reliance on cost control or external capital, and raises execution risk over multiple quarters.
Volatile And Weak FCF ConversionAlthough cash flow turned positive, large year-to-year swings and low FCF relative to losses reduce predictability of internally funded growth. Volatility complicates budgeting for marketing and product investment and raises the chance of funding gaps in stress periods.
Low Returns And Earnings Quality ConcernsNegative ROE shows the company hasn’t generated acceptable returns on capital, while extreme gross margin volatility suggests inconsistent pricing, fulfillment economics, or accounting variability. Both factors undermine confidence in long-term margin sustainability.