High LeverageExtremely high leverage and minimal equity leave the company exposed to interest-cost shocks and limit financial flexibility. Over the medium term, this constrains the ability to fund capex or marketing internally and increases refinancing risk, especially if margins fail to improve.
Persistent UnprofitabilityOngoing negative EBIT and net income margins signal structural operating inefficiencies or unfavorable unit economics. Without sustained margin improvement, the company cannot convert revenue growth into shareholder returns, making long-term viability dependent on cost restructuring or scale-driven improvements.
Negative Free Cash FlowPersistent negative free cash flow undermines liquidity and forces reliance on external financing or debt, worsening leverage. Over a multi-month horizon, this limits investment in growth initiatives, increases vulnerability to macro shocks, and elevates the risk of operational disruption if funding tightens.