Persistently Negative Stockholders' EquityNegative equity weakens the balance sheet, limiting access to traditional financing and increasing counterparties' caution. This structural weakness can raise borrowing costs, restrict capital options, and persistently constrain strategic investment unless cumulative profitability reverses.
Profitability Remains NegativeDespite revenue growth, continued negative margins mean the business still consumes economic profit. Without sustained margin improvement or scale-driven SG&A leverage, losses will erode cash and equity, delaying durable shareholder returns and raising structural viability concerns.
Small Asset Base And Cash-flow VolatilityA relatively small asset base provides limited cushion against renewed operating setbacks. Historical volatility in operating and free cash flow indicates earnings instability, increasing the chance that a cyclical or regulatory shock could rapidly strain liquidity and strategic options.