Negative Operating And Free Cash FlowPersistent negative operating and free cash flow means the business still requires external financing to fund growth. Continued cash burn limits ability to self-fund investment, raises dilution risk, and constrains strategic choices absent a durable shift to positive cash generation.
Persistently Negative Net MarginsEven after strong revenue growth, a negative net margin indicates the company has not translated top-line gains into profitability. Structural cost issues or high operating expenses must be resolved for sustainable earnings, otherwise losses could recur as growth normalizes.
Eroded Equity And Poor ROE HistoryDeclining book equity and historically negative ROE reflect cumulative losses that have weakened the capital base. A reduced equity buffer heightens financial vulnerability, complicates fundraising terms, and increases the risk that future capital raises dilute existing holders.