Negative Equity And High LeverageNegative shareholders' equity and elevated leverage create structural solvency risk and limit access to low-cost capital. This constrains strategic choices, increases refinancing and covenant risk, and can force operational retrenchment or expensive funding solutions over the medium term.
Persistent UnprofitabilityContinued negative net profit and negative EBIT/EBITDA indicate the business still hasn't reached operating leverage. Persistent losses erode liquidity, require recurring funding, and delay self-funded growth, increasing execution risk and the time needed to deliver sustainable shareholder returns.
Modest Revenue GrowthRevenue growth around low single digits is modest for a SaaS HR tech provider. Slow top-line expansion makes it harder to leverage fixed costs, compress operating margins, and achieve scale; this extends the period before profitability and weakens competitive momentum versus faster-growing peers.