Persistent Net LossesConsistent, material net losses indicate the business has not reached operating scale. Ongoing negative profitability erodes equity and constrains reinvestment, raising execution risk. Without durable margins or improving operating leverage, losses heighten the likelihood of future equity raises and dilution.
Weak Cash GenerationPersistent operating cash outflows and deeply negative free cash flow show the company burns cash to sustain activities. Structural negative cash generation necessitates external financing to fund operations and development, increasing refinancing and execution risk if capital markets tighten or investor appetite wanes.
Rising LeverageA sudden increase in debt raises ongoing interest and repayment obligations, reducing financial flexibility. Higher leverage limits ability to fund growth internally, increases refinancing risk, and can strain covenants; this is a durable headwind if operating progress does not restore cash flow.