Gross Margin CompressionHeavy reliance on third‑party GPUs for large contracts materially compresses gross margins, weakening unit economics. Unless proprietary GSP card integration meaningfully displaces external components, sustained low gross margins will impair path to profitability and competitive pricing flexibility.
Persistent EBITDA LossesOngoing adjusted EBITDA deficits signal the business is not yet self‑funding its growth. Continued losses require recurring external financing or dilution, limit reinvestment capacity, and raise execution risk for scaling operations and delivering margins improvements over the medium term.
Negative Cash Flow And LeverageNegative operating and free cash flows combined with elevated leverage constrain financial flexibility and increase refinancing risk. This limits the company’s ability to fund chip development and scale deployments internally, making long‑term investment and strategic initiatives dependent on external capital.