Deep Operating LossesExtremely negative operating and net margins show the cost base far exceeds current revenues. Until operating expenses are reined in or revenue scales materially, losses will persist, preventing sustainable earnings and restraining return on invested capital.
Negative Cash Flow / Cash BurnOngoing negative operating and free cash flow indicate the business is not yet self-funding and depends on external financing or non-dilutive contracts. Persistent burn limits runway for commercialization investments and increases execution risk if funding tightens.
Revenue Volatility / Recent DeclineAfter rapid historical scaling, a TTM revenue decline signals uneven demand or lumpy contract timing typical in early-stage tech companies. Volatility complicates planning, makes profitability timing uncertain, and heightens reliance on a few development contracts.