Improved Gross Margin (2025)A material gross-margin improvement in 2025 signals better product mix or pricing and indicates the company can extract more value from sales. If sustained, higher gross margins create structural room to absorb fixed costs and move toward profitability as revenue stabilizes.
Less-negative Free Cash Flow (2025)An improvement in free cash flow, even if still negative, reflects progress in cash conversion or cost control. Durable reductions in cash burn lengthen runway, reduce near-term financing needs and lower dilution risk, improving the company’s ability to self-fund operations over months.
EPS Growth TrendPositive EPS growth indicates improving per-share earnings dynamics despite headline losses. When paired with rising gross margin and FCF improvement, EPS growth suggests operational leverage or structural cost actions by management that, if maintained, support a sustainable recovery in profitability.