Fragile Balance SheetExtremely small equity relative to liabilities leaves the company with limited loss-absorbing capacity and high leverage. This weak capital structure constrains strategic flexibility, increases refinancing and solvency risk, and can force dilutive funding under stress over the coming months.
Compressed Gross MarginsSubstantially lower gross margins limit the company's ability to convert revenue into sustainable operating profits. Structural margin pressure requires product, pricing, or cost-of-service changes to achieve durable profitability, weakening defensibility until resolved.
Volatile Free Cash FlowA large YoY drop in free cash flow despite FY2025 positivity signals volatility in cash generation and sensitivity to operational swings. This reduces runway predictability and elevates funding risk, making longer-term planning and investments more uncertain.