Negative Shareholders' EquityNegative shareholders' equity reflects accumulated losses and a thin capital base, materially constraining financial flexibility. It increases the probability that further underperformance forces dilutive capital raises, restructurings, or creditor remedies, meaning recovery depends on sustained profit generation and likely external recapitalization to fully restore balance-sheet health.
Multi-year Earnings And Cash-flow VolatilityA history of volatile earnings and cash flow (FY2020–FY2024) undermines the predictability of results and planning. Even with FY2025's rebound, intermittent profitability complicates supplier, customer, and lender confidence; lasting recovery requires multiple consecutive periods of stable margins and cash flow to change structural risk perceptions.
FY2025 Free Cash Flow Declined Versus Prior PeriodAlthough FCF turned positive, the decline versus the prior period indicates the improvement may not be a clear, stable trend. This weakens the case for relying on internal cash to fund growth or rebuild equity and keeps refinancing and capital-raising risk elevated until multi-period FCF improvement is demonstrated.