Persistent Net LossesA roughly -46% net margin in FY2025 signals the company has not yet demonstrated sustainable earnings power. Prolonged losses erode retained equity, limit reinvestment ability, and increase reliance on external funding to bridge operating shortfalls, constraining long-term financial flexibility.
Negative Cash GenerationConsistent negative operating and free cash flows force dependence on financing or equity to fund operations. Even though burn has improved, ongoing negative cash generation constrains capacity to scale, invest in owned IP, or weather project timing gaps without diluting shareholders or raising debt.
Negative Returns On EquityMeaningfully negative ROE reflects that shareholder capital is not producing returns; if persistent, this can erode book equity and make capital raises costlier. Weak ROE also signals poor capital efficiency, reducing investor confidence in management’s ability to convert projects into profitable growth.